Rio Tinto’s Diamond Revenue Up 6 Percent in 2014

Rio Tinto plc (NYSE:RIO,ASX:RIO,LSE:RIO) announced that it delivered underlying earnings of $9.3 billion in 2014. It also announced a 12-percent increase in its full-year dividend and a $2-billion share buyback.

As quoted in the press release:

Our continued financial and operating discipline enabled us to offset much of the impact of lower commodity prices in 2014. By increasing volumes and reducing costs, we achieved underlying earnings of $9.3 billion and we were able to maintain our EBITDA margin2 at 39 per cent. Free cash flow was assisted by a further reduction in capital expenditure3 and a successful programme to release working capital. As a consequence, we have reduced net debt4 by $5.6 billion to $12.5 billion.

Rio Tinto Chief Executive Sam Walsh stated:

Last year, we made a clear commitment to materially increase cash returns to our shareholders. We have delivered this today through a 12 per cent increase in our full year dividend and a proposed $2.0 billion share buy-back. These represent a total cash return to shareholders, in respect of 2014, of almost $6.0 billion.

Click here for the full Rio Tinto plc (NYSE:RIO,ASX:RIO,LSE:RIO) press release