Rio Tinto plc.
) reported weak financial results in half-year 2012. Net earnings
attributable to ADR holders of Rio Tinto were $5,885 million during
the period, down 22% year over year from $7,587 million reported in
half-year 2011, hurt by lower prices.
Earnings per ADR from continuing operations were approximately
$3.16 compared with $3.87 in the comparable period last year.
Reported earnings also missed the Zacks Consensus Estimate of
Consolidated sales in half-year 2012 moved down to $25,336
million from $29,056 million recorded a year ago. The decline in
sales resulted from lower demand for metals and minerals from
China, Europe as well as the US.
Operating profit in the reported period stood at $6,662 million
compared with $11,056 million in the year-ago period. Operating
margin dropped to 26.3% from 38.1% in the previous year. Underlying
EBITDA plunged 29% to $10,079 million from $14,253 million in the
comparable period last year.
The company's capital expenditure increased to $7,561 million in
the reported period from $5,134 million in the same period last
year, due to Rio's investment in property, plant & equipment
and intangible assets.
Net cash generated from operating activities was $3,315 million
compared with $8,656 million in the year-ago period. Cash and cash
equivalents came in at $7,286 million compared with $9,670 million
a year ago.
Consistent with its previous guidance, Rio announced a 34%
year-over-year hike in its dividend payout to 72.5 cents per share.
Rio's $7 billion share buy-back program was completed at the end of
the first operational quarter of 2012.
Headquartered in London, UK, Rio Tinto plc is engaged in
exploring, mining, and processing the earth's mineral resources,
producing a broad range of metals and minerals. Rio Tinto competes
against global mining giants like
BHP Billiton Ltd
Rio Tinto has a Zacks #5 Rank, reflecting a short-term (1-3
months) Strong Sell rating.
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