Anglo-Australian mining giant Rio Tinto on Thursday announced a 43% leap in full-year net profit to a record $7,44-billion and forecast continued strong demand for commodities.
The figure was slightly higher than market expectations of a $7,4-billion after tax result and compared with the $5,22-billion net profit, notched-up in 2005.
Rio Tinto chairperson Paul Skinner said the global economy was likely to slow in 2007 but demand for commodities would remain strong, particularly from the rapidly-expanding Chinese economy.
”Looking to 2007, there are a number of uncertainties in the global economy, not least the direction of inflation and interest rates in major economies.
”We expect some moderation of global economic growth, although confidence in Japan and Europe is increasing,” Skinner said.
”Growth in China, which is critical to the demand outlook for many of our products, remains strong and well balanced.
”We continue to view the overall outlook for commodities as positive, with prices remaining well above their long run averages in 2007.”
Skinner also announced chief executive Leigh Clifford would be replaced by group resources director Tom Albanese in May this year.
”We have planned for an orderly succession and are confident that, with a strong executive leadership team, we will retain momentum in pursuing Rio Tinto’s long-term strategy of delivering value to shareholders,” he said.
Clifford said the result was underpinned by record production levels.
”In 2006, the group achieved record production volumes in a number of products, including iron ore, alumina, US coal and molybdenum,” he said.
”Operations generally recovered well from the effect of adverse weather conditions early in the year, particularly the cyclones which hit northern Australia.” – Sapa-AFP