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. Last Updated: 07/27/2016

BHP Announces 89% Rise in Full-Year Profit

SYDNEY, Australia -- British-Australian resources group BHP Billiton announced record full-year net profit of $6.398 billion, up 89.3 percent from $3.379 billion a year earlier, based on strong demand from China and soaring prices for its raw materials.

The profit in the year ended June 30, a corporate record in Australia, was struck on a 27.5 percent increase in sales to $31.8 billion. Excluding one-off items, the profit was $6.5 billion.

BHP Billiton, which is listed on the Australian and British stock exchanges, employs some 35,000 people in 20 countries around the world.

Investors were unimpressed at the record result -- which smashed the corporate record set by BHP Billiton's profit last year -- and BHP Billiton's share price in Australia plunged 2.4 percent in trading shortly after the results to 20.56 Australian dollars ($15.40).

CEO Chip Goodyear said demand was rising aggressively for key commodities such as iron ore and coking coal. Iron ore prices are moving higher in China and elsewhere, he said, while coking coal prices are holding with some slight fall in the spot price of late.

BHP's profit was led by carbon steel materials, where operating earnings rose 148 percent to $2.82 billion, buoyed by high iron ore and coking coal prices.