Rio Tinto Cuts Capital Spending Budget, Deepens Productivity Push
November 23 2016 - 5:54PM
Dow Jones News
By Rhiannon Hoyle
Rio Tinto PLC (RIO.LN) cut its forecast for project spending in
2016 by at least 13% and vowed to deepen a productivity drive in
the years ahead.
The company on Thursday projected capital expenditure of less
than US$3.5 billion for this year, down from a previous forecast of
around US$4 billion. It retained forecasts of US$5 billion and
US$5.5 billion for the coming two years, respectively.
The mining giant, which reaffirmed plans to return 40%-60% of
underlying earnings to shareholders over the long term, also said
it expects to generate US$5 billion of additional free cash flow in
the next five years from a push to improve productivity across its
operations.
Rio Tinto said that target was in addition to a cost-reduction
target of US$2 billion for this year and next.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
November 23, 2016 17:39 ET (22:39 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Rio Tinto (NYSE:RIO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Rio Tinto (NYSE:RIO)
Historical Stock Chart
From Apr 2023 to Apr 2024
