On February 11, Anglo-Australian iron ore giant Rio Tinto announced its financial results for 2010, stating that the positive outcome was due to a combination of strong commodity markets, first class assets and excellent operational performance at the company's managed operations.
Rio Tinto posted a net profit of US$14.32 billion in 2010, up 194 percent compared to the net profit of US$4.87 billion in 2009. The company's gross sales revenues increased 37 percent to US$60.32 billion from US$44.04 billion in 2009. Rio Tinto's underlying earnings before interest, taxes, depreciation and amortization (EBITDA) at a record high of US$25.98 billion in 2010 were 82 percent over the US$14.31 billion registered in 2009. The company's net debt declined from $18.9 billion at the end of 2009 to $4.3 billion at the end of 2010.
The group said that its capital expenditure for 2011 is expected to be approximately $13 billion.
Commenting on the results, Rio Tinto chairman Jan du Plessis said, "We are in a significant growth phase and have multiple opportunities to pursue. Our strategy remains the same, and our strengthened balance sheet means we are in a good position to deliver on this. We will continue to make substantial investments in value-adding organic growth and targeted small to medium-sized acquisitions."