Rio Tinto 1Q09 Profit Down 45% On Weaker Aluminum, Copper Earnings

MELBOURNE -(Dow Jones)- Rio Tinto Ltd. (RTP) said Tuesday its first quarter net profit fell 45% on year to US$1.60 billion from US$2.94 billion last year as lower prices hit earnings from its aluminum and copper divisions. The miner said underlying earnings from its iron ore division rose 7.9% on year to US$988 million but its aluminum division made an underlying loss of US$481 million compared to earnings of US$330 million last year. Underlying earnings from its copper and diamonds division fell 79% on year to US$182 million. Gross sales revenue for the three months to March 31 fell l28% on year to US$9.5 billion from US$13.2 billion, driven largely by a 41% drop in sales revenue from the miner's aluminum division and a 56% drop in revenue from its copper and diamonds division. Rio Tinto said lower prices had crimped earnings, pointing to a 50% drop in the average LME aluminum price for the quarter compared with last year and a drop in the average copper price during the quarter to US$1.54 per pound from US$3.50 a pound in the first quarter of 2008. Rio's net debt at the end of the quarter was US$37.86 billion, down from US$38.67 billion as at December 31, 2008. The miner said it has used the funds from a US$3.5 billion bond issue to partially pay down to debt facilities and now has US$7.15 billion due for repayment in October this year and US$8.1 billion due a year later, with a further US$10 billion due in December 2012.