Vale’s Q2 2016 Earnings Review: Cost Rationalization Efforts To Stand Company In Good Stead In Subdued Commodity Pricing Environment

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Vale’s Q2 results reflect the progress made by the company in its efforts to lower operational costs and increase operational efficiency as it continues to grapple with a subdued commodity pricing environment. The company’s cost rationalization efforts helped prop up its operating margins despite top line pressure as a result of a decline in commodity prices. With the prices of all the major commodities sold by Vale expected to remain under pressure in the near term, a lowering of costs will stand the company in good stead going forward.

Vale's Q2 2016 Earnings Review

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Vale