New Rio Tinto boss Sam Walsh promised an “unrelenting” focus on shareholder value as he unveiled the FTSE 100 miner’s first-ever full-year loss, of $3 billion (£1.9 billion).
Walsh, promoted to the top job last month as $14.4 billion of writedowns on ill-judged coal and aluminium acquisitions forced Tom Albanese to quit, began with a larger-than-expected 15% hike in the dividend, to $1.67 a share.
He also announced plans to generate annual savings of $5 billion by next year through a cost-cutting drive that would see the group reducing its exploration and evaluation spending by $750 million this year.
“Under my leadership, Rio Tinto will have an unrelenting focus on pursuing greater value for shareholders. 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,” Walsh said.
“Looking ahead, we see positive momentum in the fourth quarter of last year being sustained into 2013 with Chinese GDP growth returning to above 8% in 2013.”
Before his promotion, Walsh was chief executive of the miner’s key iron ore division. He replaced Albanese after Rio was forced to take another major charge against its beleaguered division as well as a hit on its coal operation in Mozambique.
