UBS: Rio Tinto Limited - Results of Last Quarter 2005 - A Cash Cow

Submitted by Craig Strzelecki on 3 February, 2006 - 12:01

UBS has a BUY 2 target on RIO head at $90. Earnings are in line with investor and market sentiment. It was a goos overall result with the large capital management program announced outweighing some disappointment that the ordinary dividend was not increased further. Underlying profit of US$4,955m was 1.4% below our expectations. Underlying profit was 0.7% above consensus expectations of US$4,921m. Final dividend per share (DPS) of US41.5cps (centes per share). RIO also announced a special dividend of 110cps and increased their planned buyback programme to US$2.5bn over two years, incl. the existing buyback programme (US$0.5bn). Looks good to invest in. (By no means this is an inducement by us for you to buy RIO)

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