12 February
MELBOURNE,
Press Release
  • The major strategic partnership with Chinalco announced today (see separate release) provides additional flexibility in addressing the Group’s commitment to reduce net debt by a further $10 billion by end of 2009 
  • Record underlying EBITDA1 of $22.3 billion2, 60 per cent above 2007 
  • Record underlying earnings1 of $10.3 billion2, 38 per cent above 2007 
  • Net earnings1 of $3.7 billion, 50 per cent below 2007 
  • Net earnings include a charge of $8.4 billion related to asset impairments, partly offset by gains of $1.5 billion from asset divestments
  • Cash flow from operations up 64 per cent to a record of $20.7 billion
  • Net capital expenditure of $8.5 billion, 71 per cent higher than 2007. 2009 capital expenditure to be reduced to approximately $4 billion
  • Net debt reduced by $6.5 billion to $38.7 billion at 31 December 2008 
  • $3 billion of divestments during 2008; agreement to sell potash assets and Brazilian iron ore operation for $1.6 billion post year end 
  • Full year dividend maintained at 136 US cents
  • Rio Tinto Alcan integration achieved synergies of $585 million in 2008, ahead of schedule and on track to deliver $1.1 billion of after tax synergies in 2010 as planned
  • Record production achieved in 2008 in iron ore, bauxite and alumina, borates, hard coking coal and US coal

1) Net earnings and underlying earnings relate to profit attributable to equity shareholders of Rio Tinto.
Underlying earnings is defined and reconciled to net earnings on page 30. EBITDA is defined on page 36 of the full announcement.
Underlying EBITDA excludes the same items that are excluded from underlying earnings.
2) Underlying EBITDA and underlying earnings include $483 million profit on disposal of the Kintyre exploration property.