Rio Tinto’s First Quarter Production Comes in Under Analyst Forecasts

Reuters reported that Rio Tinto’s (NYSE:RIO,ASX:RIO,LSE:RIO) first quarter 2015 production number increased by a less-than-expected 12 percent, missing analyst forecasts.

As quoted in the company press release:

Global iron ore shipments of 72.5 million tonnes (Rio Tinto share 57.3 million tonnes) were nine per cent higher than in the first quarter of 2014. Production of 74.7 million tonnes (Rio Tinto share 59.4 million tonnes) was a 12 per cent increase year on year.

Sam Walsh, CEO of Rio Tinto, commented in the press release:

We continue to drive efficiency in all aspects of our business, which is reflected in our solid production performance during the first quarter. By making best use of our high quality assets, low cost base and operating and commercial capability our aim is to protect our margins in the face of declining prices and maximise returns for shareholders throughout the cycle.

As quoted in the Reuters article:

Rio Tinto on Tuesday missed first quarter analyst forecasts for iron ore shipments due to bad weather and transport delays, but maintained its full year production target in a bearish sign for prices already at 10-year lows.

The world’s no. 2 producer after Vale (NYSE:VALE) increased production 12 percent in the first quarter from a year earlier, to 74.7 million tonnes, according to the company’s latest operations report.

That was roughly in line with a forecast from UBS but around 8 million tonnes below other analysts’ forecasts.

Click here to read the full Reuters report.