Fortescue Reports 41% Profit Drop to $3.37B on Iron Ore Price Fall

Fortescue Metals Group reported a 41% decline in net profit after tax to $3.37 billion for the fiscal year ending June 30, marking its smallest full-year profit in five years. The drop in earnings was largely due to lower iron ore prices driven by oversupply concerns and weakening demand from China amid its ongoing property sector slowdown. Increased iron ore shipments from Australia, Brazil, and South Africa, combined with reduced steel production in China, further pressured prices. Despite the profit slump, Fortescue declared a final dividend of A$0.60 per share, down from A$0.89 the previous year, resulting in a total dividend payout of $1.24 billion to Andrew and Nicola Forrest, the controlling shareholders. This performance was slightly below analyst expectations but consistent with the broader challenges faced by major miners like BHP and Rio Tinto. Fortescue’s profit decline underscores the current volatility in global iron ore markets and the impact of China's economic conditions on commodity demand.