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Alro reported an adjusted net loss of 27 million lei*, in Q1 2013
Wed, 05/15/2013 - 17:17
Financial and operational highlights
- Turnover of RON 526 million (USD 164 million), compared to RON 544 million (USD 170 million), in Q1 2012
- Primary aluminium production of 62,400 tonnes, from 59,675 tonnes in Q1 2012
- Processed aluminium production of 18,821 tonnes, increased from 16,549 tonnes in Q1 2012
Slatina, 15 May 2013 – Alro SA (BSE: ALR, “The Company” or “Alro”), the largest aluminium producer in Central and Eastern Europe, today announces its financial results, in accordance with International Accountancy Standards (IFRS), for three months ended on March 31st 2013. The Company reported in Q1 2013 a net adjusted loss* of RON 26.8 million (USD 8.37 million), compared to a net adjusted profit of RON 48 million (USD 15 million) in Q1 2012. The turnover for Q1 2013 was of RON 526 million (USD 164 million), compared to RON 544 million (USD 170 million), in Q1 2012.
“The financial results of the company, already affected by a continuously decreasing market, are strongly influenced by factors outside the aluminium industry”, said Marian Nastase, President of the Board of Alro. “On one hand, we faced a major decrease of the international aluminium price, and, on the other hand, the energy taxes, the derivatives and the other expenses impacted the final results, without reflecting the core performance of the company. All these elements canceled the profit from the core activity”.
The profit of RON 88.8 million, registered in the first quarter of this year, was adjusted with the expenses from the reversal of depreciation of assets, with the impact from the derivates which don’t qualify for hedge accounting, and with other elements from the earnings and expenses that don’t reflect the performance of the core activity of the company. Therefore, it resulted a net adjusted loss of RON 26.8 million, in Q1 2013, compared to a net adjusted profit of RON 48 million, in Q1 2012.
In the first quarter of 2013, Alro continued to focus on supplying high added value products, increasing its processed aluminium production to 18,821 tonnes, from 16,549 tonnes in T1 2012. The total primary aluminium production was of 62,400 tonnes, from 59,675 tonnes in Q1 2012.
The total sales of aluminium increased to RON 526 million, in the first quarter of 2013, though the total sold output was with 565 tonnes bigger than the same period last year. This decrease was determined by the price of aluminium on the London Metal Exchange (LME)
In Q1 2013, the international aluminium market continued to depreciate, reaching new lows for the year. The price of aluminium reached an average of USD 2,002 per tonne, compared to USD 2,117 per tonne, in Q1 2012.
Furthermore, the production costs registered a significant increase, from RON 446 million, in Q1 2012, to RON 474 million in Q1 2013. This increase was determined, mainly, by the higher expenses with the energy, due to the increase of the green certificates quota stipulated for 2013 at 21.17%, compared to 11.88%, in 2012.
* The net adjusted profit represents the net profit of the Company, adjusted with expenses/incomes from the reversal of the assets depreciation, earnings/losses from derivatives that don’t qualify for hedging accounting, postponed profit taxes and other elements from incomes and expenses that don’t reflect the performance of the core activity of the Company.
Given the significant impact generated by marking to market the derivatives that don’t qualify for hedging accounting, the management considers that the Net adjusted profit as representative for the financial performance of the Company.
For further information please contact:
Florenta Ghita
Premium Communication
Bucharest
Phone +40 (0) 21 411 01 52
Email florenta.ghita@premiumpr.ro
About Alro:
Alro is subsidiary of Vimetco N.V., a global, vertically-integrated primary and processed aluminium producer. Alro is the largest aluminium producer in Central and Eastern Europe measured by volume with an installed production capacity of 265,000 tonnes per year.
The main markets for the aluminium manufactured by Alro are within the EU (Hungary, Poland, Greece, Germany and Romania). Alro also exports to the US and Asia. Alro is ISO 9001 certified for quality management and has NADCAP as well as EN 9100 certificates for aerospace production organizations. Alro’s products adhere to the quality standards for primary aluminium on the LME, as well as international standards for flat rolled products.
The contents of the website www.alro.ro are not incorporated into, and do not form part of, this announcement.
