CEO Walsh Begins Tough Calls to Bring Rio Tinto (ASX: RIO) Back to Black
By Vittorio Hernandez | February 15, 2013 9:32 AM EST
Mining giant Rio Tinto (ASX: RIO) continues to reap the negative impact of the bad business decisions made by outgoing Chief Executive Tom Albanese, who was forced to resign over losses suffered by the company. On Thursday, Rio reported $3 billion losses for 2012.
It was the first loss for the world's second-largest miner, making the job of Mr Albanense's successor, Sam Walsh, more challenging.
Responding to the red balance sheet, Mr Walsh said in a statement, "Under my leadership, Rio Tinto will have an unrelenting focus on pursuing greater value for shareholders. Demonstrating this commitment, we will deliver our capital reduction and cost savings targets and improve performance across our business."
Besides the losses suffered by Rio on its aluminum and coal assets which were written down and cost Mr Albanese his job, the other reasons for Rio's losses were the lower prices of commodities in the international market.
The impairments' contribution to Rio's net loss was placed at $3 billion, causing the miner's profit to go down from $5.83 billion in 2011.
As a result of the weaker prices for iron ore which plummeted by 23 per cent on the average, Rio is slashing costs and shelving projects in response to calls from investors to improve returns.
In November, Rio announced it would chop costs by over $5 billion by the end of 2014 and reduce exploration spending.
To contact the editor, e-mail:
Most Popular Slideshows
- Jeremy Lin, Kobe Bryant Among The Top 5 Overpaid Players In The NBA (Part 1 - Western Conference)
- Reasons Why Michael Jordan Is Better Than LeBron James [PHOTOS And VIDEO]
- Dwyane Wade, Joe Johnson, Amare Stoudemire Among Worst Contracts In The NBA (Part 2 - Eastern Conference)
- Brawl-Marred Game in NFL Week 3: Philadelphia Eagles 37, Washington Redskins 34 [PHOTOS]
Join the Conversation
- Nexus 6, 8 Release Date is Halloween 2014 as Android L Intro Set for October 16
- New Samsung Galaxy Note 4 and Galaxy S5 Android 5.0 L Killer Features, Encryption and More
- Moto G 2014 v Asus Zenfone 5 – Specification Comparison Shows Zenfone 5 Is A Good Alternative for Moto G
- Android 5.0 L Nexus 4, Nexus 5, Nexus 7 Release in October, Google Employees Offer Hint
- Microsoft Doubles OneDrive Space To 30GB Due To iOS 8 Update Issues
- Nexus 8, Nexus 9 Release Date, Device Name And Price Conundrum: What To Expect?
- G20 Summit in Nov: No Consensus to Bar Russia, Putin Open to Attend in Australia