Rio records 9% profit rise
by Gill Montia

Rio Tinto recorded a 9% rise in underlying profit, to $3.91 billion, in the second half of 2007.
The news was accompanied by a rebuttal of BHP Billiton’s hostile bid for the group with Rio’s chairman, Paul skinner, stating that the bid: “still fails to recognise the underlying value of Rio Tinto’s quality assets and prospects”.
Profit for the whole year rose to $7.44 billion from $7.34 billion in 2006, and analysts are forecasting a further increase to around $9.5 billion, in 2008.
Rio’s highest source of earnings is copper and supply shortages predicted this year, as demand for the metal rises faster than expected in China, could enhance profit further.
Paul Adams, of stock broking firm DJ Carmichael & Co, comments: “This was a strong result, better than expected given the cost pressures the mining industry is facing right now … it looks as if their cost management efforts have come in ahead of expectations.”
The contribution to earnings over nine weeks from Rio’s acquisition of Alcan was $424 million.
The company has raised its annual dividend 31% to $1.36 and plans to increase the payout over each of the next two years by at least 20%.
Add to Bookmarks:
Related posts to: Rio records 9% profit rise
Norilsk increase profit and pollution ...
Mining companies may have seen best of profit ...
Gold price pauses for breath ...
Gold prices decline on profit-taking ...
Rio achieves record tonnages ...
Latest Metals News:
Gold drops $22 on stronger dollar
Gold prices lower as other metals see gains
Rio Tinto withdraws from Saudi equity partnership
Rio to cut 14,000 jobs worldwide
Copper prices drop in New York, London
BHP Billiton scraps plans to acquire Rio
Base metals see more price declines
Copper prices fall on inventories, US housing data
Copper, aluminium gain after early declines
Gold drops half a dollar in New YorkPrevious: « Cornerstone, Newmont signs agreement
Next: Platinum prices rise above $2,000 per ounce in New York »
Visited 1128 times, 2 so far today