Rio Tinto's Sam Walsh vows to focus on shareholder value
Rio Tinto's new chief executive, Sam Walsh, promised an "unrelenting" focus on shareholder value as he unveiled the FTSE 100 miner's first-ever full-year loss, of $3bn (£1.9bn).
Mr Walsh was promoted to the top job last month after $14.4bn of writedowns on ill-judged coal and aluminium acquisitions forced Tom Albanese to quit.
Despite the loss he began his term with a larger-than-expected 15 per cent rise in the dividend to $1.67 a share.
He also announced plans to generate annual savings of $5bn by next year through a cost-cutting drive that would see the group reducing its exploration and evaluation spending by $750m this year.
"Under my leadership, Rio Tinto will have an unrelenting focus on pursuing greater value for shareholders," Mr Walsh said. "To do this, we need to run the business as owners, not managers, and my immediate priority is to build more focus, discipline and accountability throughout the organisation."
Before his promotion Mr Walsh was the chief executive of the miner's key iron ore division. He replaced Mr Albanese after Rio was forced to take another major charge against its beleaguered aluminium division as well as a hit on its coal operation in Mozambique.
Woolwich terror attack: Suspect Michael Adebowale saw friend 'literally sliced to pieces' in 2008
Emergency landing at Heathrow sparks further controversy over London airport capacity
Unrest may spread across Europe, warns Red Cross chief
EDL marches on Newcastle as attacks on Muslims increase tenfold in the wake of Woolwich machete attack which killed Drummer Lee Rigby
You want to get an Eton scholarship? All you need to do is answer four (not so simple) questions
- 1 What, let gays get married? We must be bonkers
- 2 Rocky Horror star Tim Curry 'suffers major stroke'
- 3 Exclusive: How MI5 blackmails British Muslims
- 4 EDL marches on Newcastle as attacks on Muslims increase tenfold in the wake of Woolwich machete attack which killed Drummer Lee Rigby
- 5 Farewell, Shameless. Your heirs have work to do
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Nook is donating eReaders to volunteers at high-need schools and participating in exclusive events throughout the campaign.
Get the latest on The Evening Standard's campaign to get London's children reading.
Win anything from gadgets to five-star holidays on our competitions and offers page.