Total net profit for the March 2009 quarter was $US1.363 billion, down just over 32% from the $2.021 billion of the corresponding period last year but only $4 million less than the December quarter.

While Vale’s coal division revenue in the March quarter was stronger than last year due to record high coal prices, there were sustained falls from the December quarter as the global financial crisis started to bite.

Gross revenue from Vale’s thermal coal was $35 million during the March quarter, down almost 8% from the previous three months, while its metallurgical coal revenue sank 38.5% to $99 million.

Thermal coal production increased almost 7% to 430,000 tonnes compared to the December quarter but its metallurgical coal output sank 13.2% to 546,000t.

Lower spot prices affected Vale’s sales this year with the average thermal coal price for the March quarter hitting $US80.41 per tonne, slightly more than $13 shy of the price received in the previous three months.

The average metallurgical coal price was $182.01/t during the March quarter down almost 29% from a strong $256.25/t achieved in the last three months of 2008.

In its business outlook, Vale said the best performing nations during the economic slowdown were China and India.

The importance of China to Vale was made clear with the nation responsible for almost 45% of Vale’s gross revenue compared to 12.8% in the December quarter last year and 17.2% in the March 2008 quarter.

Vale is looking to China to lead a world recovery through its stimulus efforts. It expects Europe to have a longer recession than other regions due to the rigidities of its labour and product markets as well as the slow reaction of the European Central Bank to the global financial crisis.

Total debt for Vale was $18.414 billion by the end of March and the Brazilian miner also had a cash position of $12.214 billion.