Rio Tinto underlying profit climbs 10%

|About: Rio Tinto plc (RIO)|By:, SA News Editor

Rio Tinto's (RIO) 2013 underlying profit rose 10% to $10.2B and topped consensus of $9.7B, boosted by $2.3B in cost cuts.

The mining giant swung to a net profit of $3.7B from a loss of $3B in 2012, when it took significant charges on its aluminum and coal assets. Consensus was for $7.59B.

Last year's net profit reflects non-cash exchange losses of $2.9B and impairments of $3.4B, notably on Rio's Mongolian Oyu Tolgoi copper project.

Plans to cut another $3B in costs this year.

Net debt dropped by $1.1B to $18.1B.

Rio reported record output of iron ore, bauxite and power-station coal for 2013.

Iron ore output +5% to 266M metric tons.

Rio Tinto increased its final dividend to $1.92 from $1.67 a year earlier. (PR)