Vale(US:VALE) ZACKS·2025-02-25 17:05Core Viewpoint - Vale S.A. reported disappointing fourth-quarter 2024 results, with adjusted earnings per share of 20 cents, significantly missing the Zacks Consensus Estimate of 53 cents, and reflecting a 64% decline from the previous year's earnings of 56 cents per share due to lower iron ore sales volumes and prices [1][2]. Financial Performance - The company's net operating revenues decreased by 22% year over year to approximately $10.1 billion, although it slightly surpassed the Zacks Consensus Estimate of $10 billion [3]. - The Iron Solutions segment generated revenues of $8.15 billion, down 26% from the same quarter last year, driven by a 10% decline in sales volumes and prices [3]. - The Energy Transition Metals segment's revenues fell by 0.5% year over year to $1.97 billion, with nickel revenues down 9% to $1.07 billion, while copper revenues increased by 13% to $0.96 billion [4]. Profitability Metrics - Gross profit dropped 37% year over year to $3.86 billion, with a gross margin of 33.1%, compared to 29.9% in the previous year [5]. - Adjusted operating income was reported at $2.99 billion, a 47% decrease from the prior year, and adjusted EBITDA was around $3.8 billion, down 41% year over year [6]. Balance Sheet and Cash Flow - At the end of 2024, Vale had cash and cash equivalents of approximately $4.9 billion, an increase from $3.6 billion at the end of the previous year [8]. - Cash flow from operations was $9.4 billion, down from $13.2 billion in 2023, while gross debt and leases rose to $15.5 billion from $13.9 billion [8]. Yearly Overview - For the full year 2024, Vale reported adjusted earnings per share of $1.82, a 1% decline year over year, with net operating revenues down 9% to around $38 billion [9]. Stock Performance - Over the past year, Vale's shares have decreased by 24.7%, compared to a 22.9% decline in the industry [10].