Rio Tinto profit drops 65%

http://news.sky.com/skynews/Home/Business/Mining-Giant-Announces-A-Record-65-Slump-In-Profits-As-It-Is-Hit-Hard-By-The-Global-Recession/Article/200908315365576?lpos=Business_Second_World_News_Article_Teaser_Region_5&lid=ARTICLE_15365576_Mining_Giant_Announces_A_Record_65%25_Slump_In_Profits_As_It_Is_Hit_Hard_By_The_Global_Recession

Anglo-Australian mining giant Rio Tinto has announced a record drop in profits as it is hit hard by the recession.

Profits for the first six months of the year fell by 65% to £1.57bn.

The slide in earnings comes as prices for metals and minerals have dropped in the face of the global downturn.

But the world’s second biggest miner says it it was now more confident about the future after a tough 18 months.

The company expects the commodities market to stabilise in the second half of the year as well as predicting that aluminium prices will rise in the coming months.

Rio Tinto eased its debts after carrying out a £9.2bn share sale.

The group has also disposed of some of its assets, including the £1.2bn sale of its remaining Alcan packaging businesses.

Rio Tinto’s balance sheet was badly hit by the costly takeover of Alcan 2 years ago at the peak of the commodities price boom.

The company also faces the challenge of resolving serious problems with its biggest customer China.

Tensions are still high between Rio and the Chinese government after four of its staff in Shanghai were arrested on suspicion of bribery.

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another company with massive declines in profit..but dont forget..the recession is over!

401

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~ by seeker401 on August 22, 2009.