Global miner Rio Tinto
The company also announced a $5 billion share buyback and a bigger-than-expected rise in its dividend.
- 2010 underlying profit $13.987 bln vs $6.298 bln in 2009
- 2010 dividend 108 cents vs 45 cents in 2009
- 2010 H2 underlying profit $8.22 bln vs $3.73 bln year ago
GLYN LAWCOCK, RESOURCES ANALYSTS, UBS
The profit number is broadly in line with the consensus, maybe a half a percent below, so there's not much of a surprise there. But the dividend increase is ahead of expectations and while people were thinking that a buyback is possible, they thought it wouldn't be announced for another 6 months. So Rio has come and surprised people on the upside with the dividend and the buyback. The buyback is clearly positive and it's what shareholders were asking for.
RIC RONGE, PORTFOLIO MANAGER, PENGANA CAPITAL
The numbers look very much as expected so there should not be much here that disappoints. A solid result and very much to expectations.
The commitment to small and mid-size acquisitions is good. That will throw the heat on BHP because BHP's strategy has been about buying large market-leading assets so they run into anti-trust issues. Small and mid-size acquisitions will not run into the same issues.
HAYDEN BAIRSTOW, RESOURCES ANALYST, CLSA
It's a bit better on the dividend, which is positive, obviously. The earnings were in line with expectations.
The buyback is a positive signal, but it won't have much of an impact, I don't think; it also reflects our view that they are probably going to do most of (the buyback) in the back-end of that two year period. Because it's over a two year period, it's not a huge number.
BRENDAN JAMES, PORTFOLIO MANAGER, PERENNIAL GROWTH
I was pleasantly surprised by the share buyback. It was definitely in the top end of what I thought they would do. It was a good result. Dividends were pretty much in line with my expectations.
(Reporting by the Sydney bureau)