Anglo fails to resume dividend

Anglo American declined to reinstate a dividend on Friday after posting a forecast-beating 51% fall in annual earnings per share on the back of falling metal prices.

“The resumption of the dividend at the earliest possible time remains a key priority for the board,” Anglo said in a statement.

“Assuming that the commodity price environment and outlook continue to improve and the business performance remains robust, the board would expect to be able to announce the resumption of a dividend in respect of the current financial year.”

Anglo took the dividend decision after two rivals — Xstrata and Rio Tinto — resumed payouts last week having suspended them to save cash during the downturn.

Anglo posted underlying EPS of 214 cents for 2009, down from 436 cents the previous year, on revenue of $24,6 billion.

Anglo was expected earn 197 cents a share on revenue of $22,59 billion, according to the consensus estimates of 20 analysts polled by Thomson Reuters I/B/E/S.

According to StarMine’s SmartEstimates, which places more weight on recent forecasts by top-rated analysts, the estimate was for a profit of 202 cents.