ID :
199232
Fri, 08/05/2011 - 06:05
Auther :
Shortlink :
https://oananews.org//node/199232
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RIO TINTO CONFIDENT PRODUCTION WILL DOUBLE DESPITE GLOOM
MELBOURNE (Bernama) - Global miner Rio Tinto says it is confident that demand for its main products of iron ore, coal and aluminum will double, despite the uncertain world economic outlook.
Rio Tinto reported a record US$7.6 billion first half net profit compared with the previous corresponding period, thanks once again to booming commodity markets, driven by industrialisation in Asia.
However, underlying earnings of US$7.78 billion were slightly below
analysts' expectations of around US$8.03 billion.
Chief Executive Tom Albanese said he was pleased with the first half profit after floods and cyclones sent production tumbling early in the year.
The company will pay an interim dividend of 54 US cents a share, up 20 per cent.
Rio Tinto increased its share buy-back programme by US$2 billion to US$7 billion, as had been widely expected, which is to be completed by the end of March 2012.
The company said first half net profit would have been US$1.23 billion more had it not been for extra costs related to the weather disruption and higher production costs including labour.
"We were actually quite pleased with the quality of the result, particularly given the severe weather conditions we saw affecting volumes and to some extent costs in the first half," Albanese was quoted as saying in the Australian Associated Press.
"Our longer-term picture remains absolutely intact, we expect in the next 15-20 years consumption trends will lead to doubling in demand for iron ore, copper, aluminum and certainly other commodities.
"We remain positive for the remainder of 2011 and into 2012 ... it is this economic outlook that underpins our confidence to continue ramping up our investments in future growth."
Albanese said important risks included a credit tightening in China and volatile sovereign debt problems leading to a financial crisis in Europe.
The result was driven by Rio Tinto's cash-cow iron ore division that contributed about 80 per cent of the net earnings, lifting its performance by nearly 45 per cent to US$5.95 billion .
A combination of "surprisingly" high steel production and demand from China, where economic growth was 9.5 per cent, and an inability to bring new supply on stream could keep iron ore prices above US$100 per tonne, Albanese said.
Rio Tinto reported a record US$7.6 billion first half net profit compared with the previous corresponding period, thanks once again to booming commodity markets, driven by industrialisation in Asia.
However, underlying earnings of US$7.78 billion were slightly below
analysts' expectations of around US$8.03 billion.
Chief Executive Tom Albanese said he was pleased with the first half profit after floods and cyclones sent production tumbling early in the year.
The company will pay an interim dividend of 54 US cents a share, up 20 per cent.
Rio Tinto increased its share buy-back programme by US$2 billion to US$7 billion, as had been widely expected, which is to be completed by the end of March 2012.
The company said first half net profit would have been US$1.23 billion more had it not been for extra costs related to the weather disruption and higher production costs including labour.
"We were actually quite pleased with the quality of the result, particularly given the severe weather conditions we saw affecting volumes and to some extent costs in the first half," Albanese was quoted as saying in the Australian Associated Press.
"Our longer-term picture remains absolutely intact, we expect in the next 15-20 years consumption trends will lead to doubling in demand for iron ore, copper, aluminum and certainly other commodities.
"We remain positive for the remainder of 2011 and into 2012 ... it is this economic outlook that underpins our confidence to continue ramping up our investments in future growth."
Albanese said important risks included a credit tightening in China and volatile sovereign debt problems leading to a financial crisis in Europe.
The result was driven by Rio Tinto's cash-cow iron ore division that contributed about 80 per cent of the net earnings, lifting its performance by nearly 45 per cent to US$5.95 billion .
A combination of "surprisingly" high steel production and demand from China, where economic growth was 9.5 per cent, and an inability to bring new supply on stream could keep iron ore prices above US$100 per tonne, Albanese said.
