UPDATE: Rio Tinto Posts Surge In H1 Earnings, Shares Gain

Rio Tinto PLC (NYSE: RIO) reported a strong rise in its first-half profit.The company's net profit for the period jumped to US$4.4 billion, versus a year-ago profit of US$1.72 billion.Its underlying earnings climbed 21% to US$5.1 billion, beating analysts' estimates of US$4.94 billion.The company also raised the interim dividend by 15% to 96 U.S. cents per share.Rio Tinto's iron-ore profit surged 10% to US$4.7 billion in the six months through June, up from US$4.27 billion, in the year-ago period. Its aluminum division profit also climbed 74% y/y to US$373 million.The company's net copper earnings climbed 70% to $US594 million, while energy division posted a $US19 million loss, versus a loss of $US52 million.Rio Tinto's global iron ore shipments rose 23% y/y to 142.4 million tonnes in the first half.Cash flows from operations rose 8% to $8.66 billion. The company lowered its net debt down $US1.9 billion to US$16.1 billion at the end of December in the six months.The company also lowered capital expenditure to $3.6 billion in the first half.Rio Tinto projects China's steel demand to increase 3% to 4% in the second half of the year versus 2013.Rio Tinto chief executive Sam Walsh said “Our outstanding half year performance reflects the quality of our world-class assets, our programme of operational excellence and our ability to drive performance during a period of weaker prices. These results show that our current strategic and management focus is making a meaningful contribution to cash flow generation.”Rio Tinto shares gained 1.28% to $57.90 in pre-market trading.