Overview
This section contains a description of the business activities of the Group and messages from the chairman and the chief executive
World leading assetsIron ore for shipment: Rio Tinto is the second largest supplier to the world’s seaborne iron ore trade |
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Highlights 2008
Rio Tinto is a leading international business
involved in each stage of metal and mineral production. The Group combines Rio Tinto plc, which is listed on the London Stock Exchange, and Rio Tinto Limited, which is listed on the Australian Securities Exchange. We aim to operate as a seamless organisation that maximises the benefits of standard and shared approaches for every activity.We find, mine and process the Earth’s mineral resources
that fulfil vital consumer needs and improve world living standards. We produce aluminium, copper, diamonds, coal, iron ore, uranium, gold and industrial minerals (borates, titanium dioxide, salt, talc). With production mainly in Australia and North America, we operate in more than 50 countries and employ about 106,000 people.We promote health, safety, and sustainable development
wherever Rio Tinto operates. The health and safety of our employees, and a contribution to sustainable development, are key priorities. We work as closely as possible with host countries and communities, respecting their laws and customs and ensuring a fair share of benefits and opportunities.The Group’s objective is to maximise its value
and the long term return delivered to shareholders by finding, mining and processing natural resources across the globe. Our proven strategy to achieve this goal is to invest in large, long term, cost competitive mines and businesses.Highlights
Record underlying EBITDA* of US$22,317 million, 60 per cent above 2007
EBITDA* of US$23,870 million was 75 per cent higher than 2007
Earnings before interest, taxes, depreciation & amortisation restated US$m
Record underlying earnings* of US$10,303 million, 38 per cent above 2007
Net earnings* were US$3,676 million, 50 per cent below 2007
Cash flow from operations up 64 per cent to a record of US$20,668 million
Annual production records set for iron ore, bauxite, alumina, on a like for like basis
Record net capital expenditure of US$8.5 billion, a 71 per cent rise over 2007
Ordinary dividend for the 2008 year maintained at 136 US cents
* Net earnings and underlying earnings relate to profit attributable to equity shareholders of Rio Tinto. Underlying earnings is defined in Key Performance Indicators and is reconciled to net earnings in Group financial performance. EBITDA is earnings before interest, taxes, depreciation and amortisation. Underlying EBITDA excludes the same items that are excluded from underlying earnings. EBITDA and underlying EBITDA are reconciled to the income statement in the “Financial information by business unit” section of the 2008 Full financial statements.