Mining company Rio Tinto has reported a two per cent drop in 2007 net earnings, down to $7.3 billion (£3.7 billion), reflecting the cost of its takeover of Alcan and increased investment in exploration.
Excluding these costs, Rio Tinto posted an underlying profit of $7.4 billion (£3.8 billion), one per cent above 2006.
The company said it spent a record $5 billion (£2.5 billion) on growth projects, while last year's acquisition of Alcan resulted in a charge of $208 million (£106 million).
Rio Tinto said it was increasing the ordinary dividend 31 per cent to $1.36 (79 pence) and was confident of its growth prospects, particularly in the light of soaring mineral prices.
The world's third-largest mining company recently rejected a takeover offer from BHP Billiton as too low.
Rio Tinto's chairman, Paul Skinner, said: "Our boards believe these strong 2007 annual results illustrate Rio Tinto is ideally placed to continue to create substantial future value for shareholders, which remains its first priority."
Shares in Rio Tinto were £54.30 in afternoon trading, a drop of 1.68 per cent from the previous close.
Digg 
Delicious 
Reddit 
StumbleUpon 
Google 
Technorati 
Netvouz