Rio Tinto net profits drop 82%; analysts encouraged by cost-cutting drive

Rio Tinto booked net profits of $806 million in the first half of 2015, down 82% year-on-year, as low copper prices, currency losses on dollar-priced debt and asset impairments weighed on profitability.

The impact of the decline in prices was partly offset by additional cost-cutting, lower energy costs and exchange rate benefits recorded on dollar-priced commodity sales, the company said in its interim results on Thursday August 6. Overall, the results were “better than expected”, as underlying earnings and earnings per share both came in above consensus, while capex guidance for 2015 was also lowered to $5.5 billion, from less than $7 billion previously, analysts at Investec said in a note following the announcement. The company also raised its...

Published

Mark Burton

August 06, 2015

11:08 GMT

London