Rio's earnings held back by $5.8bn aluminium impairment

Mining giant Rio Tinto has hiked its full-year dividend by 34% after reporting record underlying earnings in 2011, however net earnings were held back by a massive $5.8bn impairment charge relating to its aluminium business.

Underlying earnings grew 11% from $14.0bn to $15.5bn in the 12 months ended December 31st, while net earnings sank 59% to $5.8bn, from $14.2bn in 2010. As such, basic earnings per share from continuing operations also took a hit, falling 58% from 731 cents to 303.5 cents.

"Whilst we have today reported excellent underlying earnings numbers, we also have to recognise that we have taken a significant impairment charge in relation to our aluminium business," said Chairman Jan du Plessis.

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The full-year dividend was increased from 108 cents per share to 145 cents a share.

BC