Rio Tinto:Bauxite,Alumina Unit 2007 Pro Forma EBITDA US$4.81 Billion

MELBOURNE -(Dow Jones)- Mining giant Rio Tinto PLC (RTP) said Wednesday that its expanded primary metal, bauxite and alumina unit would have represented 23% of 2007 underlying earnings had it taken over Alcan at the beginning of the year.

Adding Alcan’s earnings data for the full year, Rio Tinto’s bauxite and alumina unit had pro forma 2007 underlying earnings before interest, tax, depreciation and amortization of US$4.81 billion, Rio said in a statement to the Australian Securities Exchange.

Pro forma 2007 underlying earnings for the unit were US$2.09 billion, representing 23% of pro forma underlying earnings before corporate items and interest.

Pro forma 2007 production was 4.2 million metric tons of aluminum, 8.5 million tons of alumina and 32 million tons of bauxite. Each 10 cents-a-pound movement in the average aluminum price from 2007 is expected to change Rio Tinto Alcan’s 2008 underlying earnings by US$620 million, Rio Tinto said.

"These pro forma numbers reinforce the significance of the Alcan acquisition, which has transformed our aluminum group into an industry leader and the third major business within Rio Tinto" along with copper and iron ore, Chief Executive Tom Albanese said in the statement. "The strong fundamentals of the aluminium industry and the excellent long term demand outlook augur well for Rio Tinto Alcan’s future financial performance."

Rio Tinto finalized its acquisition in October.