Rio Tinto posts record profit

Rio Tinto Ltd, the world's third largest mining company, says the outlook for the company is positive after delivering a record first half profit. Profit for the six months to June 30 climbed 112.5 per cent higher $US6.91 billion ($A8.01 billion), up from $US3.25 billion ($A3.77 billion) in the previous corresponding period. Underlying profit, or earnings before interest and tax (EBIT), rose 55 per cent to $US5.47 billion ($A6.34 billion) and was broadly in line with analysts' forecasts. "The group continues to perform strongly, and the outlook remains positive," Rio Tinto chairman Paul Skinner said in a statement. Rio Tinto is reaping the rewards from the rapid urbanisation of China and other developing nations that has been driving greater demand for commodities and rising commodity prices for the past seven years. Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the half climbed 73 per cent to $US11.41 billion ($A13.23 billion), with Rio Tinto's iron ore division the biggest earner for the group. Underlying earnings for the iron ore division grew 161.8 per cent to $US2.88 billion ($A3.34 billion). Rio Tinto, the world's second largest aluminium producer, posted a 145 per cent increase in underlying earnings from its aluminium division to $US995 million ($A1.15 billion) after its Alcan acquisition last year. Underlying earnings for Rio Tinto's energy division, which comprises its coal and uranium assets, grew 83.5 per cent to $US679 million ($A787.34 million). However, Rio Tinto's copper division suffered a drop in earnings to $US1.69 billion ($A1.96 billion). ---smh.com.au