Rio Tinto posts record profit

5th Aug 2010 07:32

Mining giant Rio Tinto posted a record 125% jump in half year earnings and said it looks to the future with confidence. In a separate statement, the group said it received a binding offer from funds affiliated with Apollo Global Management and the Fonds Stratégique d'Investissement (FSI) to buy a 61% stake in Alcan Engineered Products (AEP), excluding the Cable Division. Rio Tinto didn't comment on the financial details of the offer, but said it will respond following consultation with the relevant employee representatives.Underlying earnings rose to $5.8bn in the six month ended 30 June compared with £2.6bn in the same period last year. Pre-tax profit increased to $8.8bn from $3.6bn previously. The miner reduced net debt to $12bn at 30 June from $18.9bn at 31 December, while gearing improved to 20%.An interim dividend of 45 cents per share has been declared, in line with previous guidance.Chairman Jan du Plessis said: "This was an outstanding half reflecting higher prices and Rio Tinto's strengths in operational excellence." "Our business is robust with a strong balance sheet which is able to withstand volatility or further shocks from the global economy. We look to the future with confidence."