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Billiton profits fall 20%
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September 7, 1999: 4:11 a.m. ET
U.K. mining group has received takeover bids; looking for acquisitions of its own
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LONDON (CNNfn) - London-based mining group Billiton posted a 20 percent fall in full-year profits Tuesday after being hit by weak commodity prices, but it said the key Asian market is showing signs of renewed growth.
The group, which focuses on aluminum production, beat analysts expectations with an net profit of $383 million for the year ending June 30 compared with $481 million a year earlier. Top-end forecasts came in at $377 million.
Billiton's (BLT) shares have soared in recent weeks amid consolidation in the metals and mining industry, jumping from 111 pence at the start of the year to close Monday at 267.5 pence.
The group said Tuesday it has received bid approaches following the rash of deals sparked by the three-way merger plan between Canada's Alcan-Aluminum, France's Pechiney (PPEC) and Algroup of Switzerland of France.
That deal roused number-one aluminum producer Alcoa (AA) to launch a bid for U.S. number two Reynolds Metals (RLM).
Billiton declined to name the interested parties. The company also said it had $1.7 billion available, and is actively seeking acquisitions of its own.
The group said operating profit in its aluminum division fell 26 percent to $251 million, but Billiton Chief Executive Brian Gilbertson said it was well placed to benefit from a recovery in commodity prices after cutting 4 percent from operating costs.
Sales fell 15 percent to $5.17 billion from $6.06 billion a year earlier. 
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Billiton
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