Brazil Miner Vale 4Q Net Profit $1.367 Billion V $2.573 Billion 4Q '07

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RIO DE JANEIRO -(Dow Jones)- Brazilian mining giant Companhia Vale do Rio Doce
(RIO), or Vale, said late Thursday that fourth-quarter net profits fell sharply,
as the global economic slowdown interrupted heated demand for iron ore.


Vale, the world's largest producer and exporter of iron ore and iron pellets,
reported fourth-quarter net profit of $1.367 billion, down from $2.573 billion
in the same quarter a year earlier, according to a company statement Thursday.


The miner, which is also the world's second-largest nickel producer, said
revenue for the quarter dropped 13% to $7.44 billion, down from $8.41 billion a
year earlier.


Earnings before interest, taxes, depreciation and amortization, or Ebitda,
decreased to $2.697 billion in the fourth quarter from $3.532 billion in the
year-earlier period.


Ebitda margin, a key measure of profitability, slipped to 27.7% in the fourth
quarter from 32.9% in the same quarter a year earlier.


Despite the declines in Vale's fourth-quarter fortunes, net profits for the
full year were up 11.9% to $13.2 billion.


Vale's locally traded shares closed 0.3% higher at 29.70 Brazilian reals ($
12.63) Thursday on the Sao Paulo Stock Exchange, or Bovespa, before the fourth-
quarter results were announced.