Resources giant Rio Tinto has beaten market expectations by reporting first-half underlying earnings of $US5.2 billion.

While the results amount to a 34 per cent drop on a year earlier, the profit beat consensus forecasts from analysts of $US4.9 billion. Credit Suisse, for instanct, had forecast a $US4.7 billion result.

The company’s net earnings were $US5.885 billion – also topping market forecasts of about $US5 billion.

The company has also announced a deferred tax credit of $US1 billion relating to Australia’s mining tax.

It will pay an interim dividend of 72.5 US cents per share, up 34 per cent on a year ago…this is significant!
.

Clarence