Iron ore miner Fortescue Metals posted a lower first-half profit and cut its dividend after the Chinese economy slowed and environmental limits were imposed on factory output before the Winter Olympics in Beijing.
Fortescue on Wednesday revealed first-half net profit after tax dropped 32 per cent to $US2.7 billion for the six months to December 31.
The Western Australian miner had record exports but could not avoid the effects of reduced demand for steel.
The average iron ore price fell to $US96 per tonne. The steel-making commodity had traded for an average $US114 per tonne in the previous corresponding period.
Costs also rose as the Eliwana mine and rail project began operating.
Investors will receive an interim dividend of 86 cents per share. This is lower than the $1.47 per share paid this time last year.
Royal Bank of Canada analyst Kaan Peker said the earnings were broadly in line with what investors expected.
Company shares on the ASX were down two per cent to $21.15 at 1148 AEDT.
