Australia’s Fortescue sees strong China demand

MELBOURNE, Aug 26 (Reuters): Iron ore miner Fortescue Metals Group posted on Monday a record profit and bumper dividend, and said it was still seeing solid demand growth despite trade tensions between China and the United States.

A surge in iron ore prices lifted Fortescue's profit to a record $3.19 billion, almost triple last year and a slight beat on consensus, and helped the company double its final dividend to A$0.24 per share from its payout last year.

"This was a strong set of results for FMG, in line with our estimates," said broker RBC Capital in a report, which pegged consensus estimates at $3.03 billion. "The final dividend was stronger than we had expected,"

Fortescue joins rival Australian iron ore miners in reporting bumper profits after a mine disaster in Brazil early this year created a global shortfall and sent prices for the steel-making raw material soaring.

Rio Tinto delivered a record payout while BHP Group posted its biggest profit in more than five years but flagged headwinds due to global growth concerns.

"We have seen the announcements even over the last few days, and tariffs commentary. And it does cause volatility in markets," said Fortescue Chief Executive Elizabeth Gaines.