![]() Rio Tinto, Vale and Anglo American have already dished out their bad news, with Vale having flagged a $1.3 billion charge on its stake in Norwegian aluminium producer Norsk Hydro, and Anglo taking a $4 billion charge on its Minas Rio iron ore project in Brazil.īHP Billiton could follow suit, with analysts expecting writedowns of between $2 billion and $3 billion on its aluminium assets, hit like the rest of the industry by rising power costs and a sharp rise in China’s aluminium output. 14, kicking off the July-December reporting season for the big five. Rio’s new chief Sam Walsh makes his first outing at the company’s results presentation on Feb. Anglo American CEO Cynthia Carroll hands over to Australian Mark Cutifani in April, while Xstrata is about to lose CEO Mick Davis as Glencore takes the company over, and BHP has said it is searching for a successor to Marius Kloppers. Rio sacked CEO Tom Albanese last month after announcing it was slashing the value of its aluminium business and Mozambique coal assets, the latest in a string of writedowns on pricey acquisitions. “The company (Rio) hasn’t shown a lot of skill at that in recent years, so perhaps the pendulum might tip a bit more towards shareholders.” for a desirable return on investment,” said Ross Barker, managing director of Australian Foundation Investment Co. “The logic of not paying out a higher dividend to shareholders is so the company can use the funds effectively. He predicted Rio Tinto, anxious to win investor goodwill after a $14 billion writedown, would move in that direction. ![]() ![]() ![]() One of the 10 largest shareholders in BHP and Rio’s Australian stock said his fund had been pressing both to pay out more of their profit to shareholders. For the top three, BHP Billiton, Brazil’s Vale and Rio Tinto, iron ore earnings are likely to cushion losses in coal, aluminium and nickel for the period, which could be the low-water mark for profits.Ĭhief executives are being punished for splurging cash in the boom years on projects and acquisitions instead of rewarding shareholders more generously, and investors are calling for Rio and BHP to rethink their dividend policies. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |