12°c Light rain showers
24°c Cloudy with showers
The Canadian Press - ONLINE EDITION
Rio Tinto's annual profit slides 59 per cent due to writedown of Alcan aluminum business
A Rio Tinto sign is shown, May 26, 2011 in Havre-Saint-Pierre Que. THE CANADIAN PRESS/Jacques Boissinot
SYDNEY - Rio Tinto reported a 59 per cent slump in full year profit due to a writedown of its aluminum business.
The company, one of the world's biggest miners, on Thursday said net profit for 2011 fell to $5.8 billion from $14.3 billion the previous year.
Rio Tinto said the drop in profit was mainly due to an impairment charge of $8.9 billion ($A8.28 billion) for its aluminum business, Alcan, which has suffered lower aluminum prices.
Chief executive Tom Albanese said he would forgo a bonus for 2011 because the acquisition of Alcan happened on his watch. Rio Tinto bought Canada's Alcan in 2007 for $38 billion.
Excluding the writedown, earnings rose to $15.5 billion from $14 billion in 2010.
Chairman Jan du Plessis said uncertainty in financial markets, particularly in Europe, would continue this year, clouding the miner's business outlook.
"This leads us to remain cautious about near-term prospects," he said, echoing comments by rival mining giant BHP Billiton on Wednesday, when it reported a drop in first half profit due to lower commodity prices and production constraints.
More Business
- Back to Top
- Return to Business
You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.
The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010; View the changes. New to commenting? Check out our Frequently Asked Questions.