RIO smashes earnings expectations

RIO's productivity translates into bottom-line success.

RIO
Source: Bloomberg

Key findings

- Iron ore still delivering despite soft pricing
- Productive drive delivering in droves
- Capex and net debt well ahead of the curve

"World Class” is the line CEO Sam Walsh is using to describe the results and the proof is plain to see. Record shipments from the Pilbara iron ore project, coupled with increased production from its copper operations in Utah and Mongolia have delivered the company an underlying net profit of US$5.1 billion and group sales at US$25.6 billion.

RIO

Revenue

Earnings per share

Expected

US$24.5 billion
US$2.41

Actual

US$25.6 billion
US$2.67

 

 

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.