12:00PM New York - Rio Tinto reported full year net underlying profit grew 1% to $7.4 billion from $7.3 billion a year ago.

Annual Earnings Review

Rio Tinto reported full year underlying EBITDA increased by 11% to $13.9 billion from $12.5 billion a year ago as prices of metals rose to record levels and production volumes increased.

In the full year ended December 31st, net earnings declined 2% to $7.3 billion from $7.4 billion a year earlier, due in part to fluctuations in the U.S. dollar. Earnings per share rose 2% year-on-year to $578.9.

Underlying earnings for the year also rose 1% from $7.3 billion a year ago to $7.4 billion.

For the year, the ordinary dividend per share jumped 31% from $104 a year ago to $136.

Segment Review

Copper

For the full year ended December 31st, EBITDA rose 14% year-on-year to $141 million as demand in the markets remained strong. However, earnings for the year declined 2% to $3.4 billion from $3.5 billion a year ago.

There were higher volumes of copper from concentrate at Escondida and higher refined copper sales from Kennecott Uta Copper Smelter.

Iron Ore

For the Iron Ore business full year earnings before income tax, depreciation and amortization increased by 17% from $3.9 billion a year ago to $4.6 billion from exceptionally strong demand, especially in the emerging markets such as China and India

Earnings in the segment jumped 18% to $2.6 billion from $2.2 billion in the year-ago period.

Rio Tinto is planning to treble production from both greenfield and brownfield projects in order to meet demand.

Aluminium

Aluminium product group EBITDA edged up 25% to $1.7 billion from $1.3 billion as strong demand developed after supply constraints as power cuts affected southern Africa and China.

The acquisition of Alcan for $38 billion is expected to positively affect profits going forward.

Energy

Uranium earnings trebled in the full year on growth in the second half of the year. Full year EBITDA in the sector dropped 13% to $1.18 billion from $1.3 billion a year ago. Earnings plunged 31% to $484 million in 2007 from $706 million a year earlier.

Rio Tinto approved $1 billion earmarked for Krestel coking coal extension and expansion.