Rio Tinto posts unprecedented USD 2.99 bn loss

Sydney, Feb 14 (AFP) Anglo-Australian mining titan Rio Tinto today posted a USD 2.99 billion annual net loss after USD 14.4 billion in writedowns on its Mozambique coal assets and ailing aluminium businesses. The impairments, announced last month, prompted the resignation of chief executive Tom Albanese and saw Rio slump into the red on underlying earnings of USD 9.3 billion. "Our business performed well in 2012, generating strong cash flows and underlying earnings of USD 9.3 billion," said Rio chairman Jan du Plessis. "However, we are deeply disappointed by the USD 14.4 billion writedowns that we have taken in 2012, primarily in our aluminium and energy businesses, which led to the group recording a net loss of USD 3.0 billion." Incoming chief Sam Walsh, who is to formally replace Albanese at the helm in July, said the company was targeting cash savings of more than USD 5.0 billion by the end of 2014 and reducing capital expenditure to USD 13 billion this year. "My immediate priority is to build more focus, discipline and accountability throughout the organisation," said Walsh. "Demonstrating this commitment, we will deliver our capital reduction and cost savings targets and improve performance across our business." Rio said the full-year results had been hit by a dip in commodity prices that had wiped USD 5.3 billion off the bottom line. Iron ore plunged 24 per cent compared with 2011, copper was 10 per cent lower and aluminium was down 16 per cent. (AFP) GVS 02141609 NNNN