Rio Tinto announces underlying earnings of $10.3 billion – up 38 per cent
· The major strategic partnership with Chinalco announced today 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
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