Rio Tinto announces underlying earnings of $6.3 billion

Thursday, 11 February 2010 12:00 AM

. Earnings reflect the scale and strength of operating performance, notably in the second half
. Underlying EBITDA1 of $14.3 billion and underlying earnings1 of $6.3 billion
. Controllable operating cost savings of $2.6 billion in 2009, exceeding target one year in advance
. Cash flow from operations of $13.8 billion
. Continued investment in 2009 with net capital expenditure of $5.4 billion
. Recapitalisation of the balance sheet; net debt reduced from $38.7 billion to $18.9 billion at 31 December 2009; gearing improved to 29 per cent
. Return to profitability for the Aluminium product group in the second half following a $0.8 billion half on half improvement in its underlying earnings
. $7.2 billion of divestments announced during 2009 of which $5.7 billion has since completed. Since February 2008, Rio Tinto has announced asset sales of $10.3 billion.
. Strong volume gains, primarily from record iron ore sales and a significant increase in copper and gold production, boosted earnings by $652 million year on year.
. Final dividend of 45 US cents per share or $882 million.
. Further progress towards the formation of the Western Australia iron ore production joint venture with BHP Billiton

1 Net earnings and underlying earnings relate to profit attributable to equity shareholders of Rio Tinto. Underlying earnings is defined and reconciled to net earnings on page 29. EBITDA is defined on page 36. Underlying EBITDA excludes the same items that are excluded from underlying earnings.
2 2009 underlying earnings per share and earnings per share from continuing operations have been calculated using a number of shares which reflects the discounted price of the July rights issues ('the bonus factor'). 2008 comparatives and 2008 ordinary dividends per share have been restated accordingly.

About Rio Tinto

Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and NYSE listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.

Rio Tinto's business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.

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Mark Shannon
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Jason Combes
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Dave Skinner
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Simon Ellinor
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