Upbeat despite falling profits
MINING giant Rio Tinto has retained a positive economic outlook in the face of plummeting first half profits, due in part to sluggish demand from China. Despite posting results which exceeded the market expectations of about US$4.94 billion, Rio’s first half underlying profit of US$5.2 billion showed a 34 per cent decrease. The company attributed the US$2.6 billion profit drop to lower commodity prices, as well as increased operating costs and weaker production. “Lower prices were the main driver of a reduction in underlying earnings in the first half of 2012, but overall we continue to generate strong earnings and cash flows,” Rio chairman Jan du Plessis said. “Whilst we are mindful of short-term uncertainties we remain convinced of the...
