BHP Billliton's underlying EBIT on diamonds for the year ending June 30, 2010 jumped $340 million over the corresponding period to an underlying EBIT of $485 million – an increase of 234%, the diamond company reports.

Cost control measures at Canada's Ekati generated higher prices and higher volumes as well as lower unit costs. Reduced diamond exploration cut exploration expenses by $43 million, and potash exploration costs totaled $73 million, $21 million less than the corresponding period. While BHP Billiton reported higher earnings at Titanium Minerals in South Africa, lower realized prices and increased energy costs offset them somewhat.

As far as partnering in the diamond industry, BHP Billiton let its offer for Rio Tinto lapse in November 2008, but the proposed joint venture between with Rio Tinto on iron ore production at Pilbara progressed over the year, with the company seeking regulatory approval. In addition, the purchase of United Minerals Corporation NL in Australia and Athabasca Potash Inc. expanded the company's resource base. On August 18, 2010 – technically beyond the time frame of the report but worth noting – BHP Billition announced that it plans to make a cash offer of $130 per share for all remaining shares of Potash Corporation of Saskatchewan Inc.

In total, BHP Billiton reported a 5.2% revenue increase to $52,798,000 for the year covered in the report, with profit attributable to group members reaching $12,722,000 – a leap of 116.5%.

BHP Billiton reported a 10% Underlying EBIDTA and an Attributable profit, less exceptional items, of 16%. While the group kept local costs under control, the report noted, the weakened dollar cost the company $2.15 million in exchange loss.

For the sixth year in a row, BHP Billiton had an approximate Underlying EBIT margin of 40%, with an Underlying capital return of 30%. The year's operating cash flow held at $17.92 million, which caused the net debt to decrease to $3.308 million. Net gearing dropped to 6%. BHP Billiton attributes these results to its diversified business model and low-cost asset portfolio.

As far as business strategy, BHP Billiton continued to invest in its business, approving two growth projects designated as "major" – the two projects have a combined budget of $695 million – and have pre-committed $2.237 million to moving ahead on another four growth projects. A total of 20 projects budgeted at a combined $25 billion are currently in various stages of planning and-or execution.

BHP Billiton is holding to a cautious short-term economic outlook. In the rapidly recovering Brazil and India, focus is on controlling inflation. In China, fiscal policy has transitioned to stress consumption-led growth and BHP Billiton expects China's GDP to slow to approximately 8% in the first half of 2011, a level deemed more sustainable.

Fiscal policy in the developed world presents a source of uncertainty, with increased debt following a period of financial stimulus. Europe has seen announcements of reductions to public spending and higher taxes, but these measures have to date been only partially implemented. Industrial output has yet to recover, and BHP sees recovered end demand as key to broad-based economic growth.

However, BHP Billiton reports some encouraging signs, such as private investment in software and equipment in some areas of the US.