MELBOURNE/LONDON: BHP Billiton Ltd/Plc, the world's largest miner, gave a guarded outlook for global commodity demand, sending a worrying signal for weaker rivals, after a slump in metals prices triggered its first profit decline in seven years.

While the mining sector has suffered from the global economic slump, forcing companies to idle capacity and delay expansion projects, BHP is seen well positioned with a strong balance sheet to take advantage of any upturn.

Chief Executive Marius Kloppers said the last 12 months were the toughest he'd seen, and it would be hard to tell whether real demand has recovered until next year.