On February 11, Australian iron ore giant Rio Tinto announced its financial results for 2009 with an increased net profit of 33 percent compared to 2008, saying that earnings reflect the scale and strength of its operating performance.
Rio Tinto posted a net profit of US$4.87 billion in 2009, up 33 percent compared to the net profit of US$3.68 billion in 2008. The company's sales revenues fell 24 percent to US$44.04 billion from US$58.07 billion in 2008. Rio Tinto's earnings before interest, taxes, depreciation and amortization (EBITDA) of US$14.31 billion in 2009 were 36 percent down from US$22.31 billion in 2008. The company's net debt declined from $38.7 billion in 2008 to $18.9 billion in 2009.
The group said that it would continue investment in 2009 with net capital expenditure of US$5.4 billion and that its joint venture with Australian iron ore producer BHP Billiton will be realized in late 2010.
Commenting on the results, Rio Tinto chairman Jan du Plessis said, "During 2009 we took decisive actions to recapitalize the balance sheet and to reduce operating costs. Significant progress in our divestment program and strong operating cash flows, together with the proceeds from the rights issues, have enabled us to cut net debt by more than half. Our renewed financial strength gives us the opportunity to focus on growth through disciplined investment in capital growth."