• 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

  • Rich getting richer

    Economists differ on how to tackle the chasm between rich and poor, says Leopold Scholtz.

Loading...
See More

Rio Tinto posts mammoth loss

Feb 14 2013 09:30 AFP
Mining

The mining industry, the bedrock upon which the country was built, is going through something like an existential crisis. (Picture: Shutterstock) (Shutterstock)

Related Articles

Global miners to act as profits plunge

Rio Tinto writes down $14bn, CEO quits

Rio Tinto CEO to step down

Rio Tinto iron ore output tops target

Rio Tinto sells small SA coal assets

New Rio chief faces test over plight of alumina refinery

 

Sydney - Anglo-Australian mining titan Rio Tinto on Thursday posted a $2.99bn annual net loss after $14.4bn in writedowns on its Mozambique coal assets and ailing aluminium businesses.

The impairments, announced last month, prompted the resignation of chief executive Tom Albanese and saw Rio slump into the red on underlying earnings of $9.3bn.

"Our business performed well in 2012, generating strong cash flows and underlying earnings of $9.3bn," said Rio chairperson Jan du Plessis.

"However, we are deeply disappointed by the $14.4bn writedowns that we have taken in 2012, primarily in our aluminium and energy businesses, which led to the group recording a net loss of $3.0bn."

Incoming chief Sam Walsh, who is to formally replace Albanese at the helm in July, said the company was targeting cash savings of more than $5.0bn by the end of 2014 and reducing capital expenditure to $13bn this year.

"My immediate priority is to build more focus, discipline and accountability throughout the organisation," said Walsh.

"Demonstrating this commitment, we will deliver our capital reduction and cost savings targets and improve performance across our business."

Rio said the full-year results had been hit by a dip in commodity prices that had wiped $5.3bn off the bottom line.

Iron ore plunged 24% compared with 2011, copper was 10% lower and aluminium was down 16%.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

rio tinto  |  mining

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

10 most expensive cars In the world

This is car porn at its best!

 
 

Luxury living

Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Watch: Flying first class has never been this luxurious!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote

Loading...