Adjusted earnings before interest, tax, depreciation and amortisation were down 21.9% compared to the same quarter last year at $US4 billion ($A4.4 billion).
Gross sales revenues came in at $9.7 billion and net income was $2.5 billion.
It compares to financial revenues of $11.2 billion and an operating income of $4.2 billion reported in the previous corresponding period.
The Brazilian mining giant cited a $14.20 per tonne fall in the iron ore price over the quarter and a $9.50/t impact from adjustments on iron ore provisional prices as negatively affecting earnings.
Iron ore was last trading at $105.40/t.
Adjusted EBITDA for ferrous minerals was down 23.4% year on year to $3.6 billion, while base metal adjusted EBITDA fell 27.5% to $549 million.
Base metal revenues, however, marked a $306 million improvement over the previous quarter with the ramp-up of several projects including the Salobo mine in Brazil, which neared its nominal capacity of 100,000t.
The quarter also resulted in a number of year-on-year production gains, with iron ore output up 9.6% to 71.1 million tonnes thanks to better-than-usual weather.
This performance included a 25.2% year-on-year gain in production at the Parauapebas mine to 6.9Mt for the quarter.
Iron ore cash costs were $21.60/t, excluding iron ore acquired from third parties.
It compares to a cash cost of $24/t reported a year ago, including mine, plant, railroad and port costs but excluding maritime freight.
Iron ore and pellet sales volumes were 4.2% higher than a year ago at 67.8Mt.
In base metals, nickel production was up 3.7% year on year to 67.5Mt while copper production fell 1.2% to 88.4Mt.
The company said the effects of a cold winter in Canada were offset by increased production from the Onca Puma (Brazil) and New Caledonia nickel operations.
For copper, Vale cited lower grades at the Sessego mine in Brazil during February as a contributor to lower output as well as a failure in a mill at the Voisey’s Bay operation in Canada.
Group capital expenditures amounted to $2.6 billion for the quarter, versus $3.9 billion a year ago, excluding acquisitions.
Sustaining capex decreased 24.3% compared to the previous corresponding period to $753 million.
Net debt was 1.8% lower than a year ago at $23.2 million and cash position was up 9% to $7.2 billion.
