Rio Tinto Limited
(ASX:RIO) has cut its expectations for the growth of its major customer and the world’s second largest economy, China.
In a presentation to investors Rio says economic growth in China is robust but moderating and expected to grow at below 8 per cent in 2012, from an earlier forecast of 8 per cent.
Globally Rio sees slow and uneven growth in developed economies and has cautioned risks remain in both Europe and America.
Rio is planning further cost cutting due to anticipated volatility in the short term and says total annual capital expenditure on projects already approved is expected to peak this year.
Shares in Rio Tinto rose 1.46 per cent on Tuesday, closing at $55.70 before the announcement was made yesterday.
Rio Tinto delivered a net profit of $6 billion in the first half of its 2012 financial year.
