Damn people. So quick to throw labels around.
Tolkien's earlier works definitely could be interpreted as, if not maliciously racist, then culturally prejudiced. He was a product of a Eurocentric society, and it probably shows.
But over time, his views definitely changed. As he got older, he rejected the concept of racial discrimination, and as some have already said, was adamantly opposed to Apartheid and the racial superiority complex of the Nazis.
So if you're gonna be so quick to label him as a racist, at least take the time to consider that, as with most people, his views changed as he got older. Does that make his earlier views any less problematic? No. But it's not like he went around until his dying breath calling black people subhuman savages like some in this thread would lead you to believe.