Rio Misses Estimates - Analyst Blog
February 14 2013 - 7:40AM
Zacks
Rio Tinto Plc.
(RIO) reported weak financial results for 2012. The company’s net
loss was $2,990.0 million during the period, facing a huge decline
of 151.0% year over year from net earnings of $5,826.0 million
reported in 2011. The results were hurt by lower market prices and
increasing raw-material costs. Loss per ADR came in at $1.61
compared with earnings of $3.04 in the comparable period last
year.
Underlying earnings per ADR were
approximately $5.03, down 38% from $8.09 earned in 2011. Reported
results missed the Zacks Consensus Estimate of $5.48.
Consolidated sales in the year 2012
moved down to $50,967.0 million from $60,537.0 million recorded a
year ago. The sales also missed the Zacks Consensus Estimate of
$53,654.0 million. The decline in sales resulted from lower prices
across almost all its products lines.
The company achieved high iron ore
production in the year, with the total production representing
roughly 78.7% of the global production. Rio’s bauxite production
increased 11.4% year over year to 31.4 million tons along with an
increase of 19.2% in alumina production to 7.0 million tons. Also,
uranium production increased 38.3% year over year to 9,760.0 lbs.
However, mined gold production faced a decline of 56.1% to
294,000.0 ounces.
Operating loss in the reported
period stood at $1,153.0 million compared with an operating profit
of $13,940.0 million in the year-ago period. Underlying EBITDA
plunged 40.2% to $9,303.0 million from $15,549.0 million in the
comparable period last year.
Net cash generated from operating
activities was $9,368.0 million compared with $20,030.0 million in
the year-ago period. The company’s capital expenditure increased to
$17,418.0 million in the reported period from $12,298.0 million in
the same period last year. The rise in expenditure was due to Rio’s
investments in property, plant & equipment and intangible
assets.
Cash and cash equivalents came in
at $7,082.0 million compared with $9,670.0 million a year ago. Rio
also announced a 15.2% year-over-year hike in its dividend payout
to $1.67 per share.
Rio expects its aluminium, alumina,
bauxite and copper production to improve in the coming year. The
stock currently holds a Zacks Rank #3 (Hold). Other stocks worth a
look in the industry are BHP Billiton Plc. (BBL),
Denison Mines Corp. (DNN) and Xstrata
Plc. (XSRAY); each carrying a Zacks Rank #2 (Buy).
BILLITON ADR (BBL): Free Stock Analysis Report
DENISON MINES (DNN): Free Stock Analysis Report
RIO TINTO-ADR (RIO): Free Stock Analysis Report
(XSRAY): ETF Research Reports
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