REPORT PREVIEW

Driven by strong commodity pricing, Rio Tinto (RIO) reported 2011 EBITDA of $28.5B, higher than the Street’s $27.2B, and a 10% uptick from $26.0B in 2010, as the company recovered from severe flooding in 1H and a difficult market for the company’s aluminum business.

In the near term, Rio said the U.S. appears to be recovering, though risks remain, and China’s economy could be achieving a soft landing with expected growth of 8% in 2012, offsetting problems in Europe. Rio remains concerned about cost pressures but remains confident in the medium- and long-term market for its products.