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Alro reports a preliminary net profit of RON 160 million for 2010
Tue, 02/15/2011 - 22:35Financial and operational highlights
• Turnover of RON 1.81 billion (USD 570 million)
• Net profit of RON 160 million (USD 50.5 million)
• The company paid profit tax of RON 33.3 million and other taxes of RON 80 million
• Modernization programme for increasing the products quality
Slatina, 15 February 2011 – Alro SA (BSE: ALR), the largest aluminium producer in Central and Eastern Europe, today announces its preliminary unconsolidated results for the year ended 31 December 2010, according to Romanian Accountancy Standards. The Company reported a preliminary net profit of RON 160.44 million (approx USD 50.48 million), compared to RON 78 million, registered in 2009. The turnover was of RON 1.81 billion (USD 570 million), compared to RON 1.41 billion, in 2009. Alro paid a profit tax for 2010 of RON 33.37 million, while the Company’s other taxes amounted at RON 80 million.
“Alro consolidated its position, both technologically and financially, and it benefited from the slight but continuous recovery of international market”, said Gheorghe Dobra, General Manager of Alro Slatina. “We implemented a cost reduction strategy ever since 2008, and having a sound and competitive cost structure, we were able take advantage of the improved situation from the aluminium market, with a higher LME price compared to 2009. We are well prepared to take all appropriate measures depending on international context”.
The aluminium price increased on London Metal Exchange to as much as USD 2,450/tonne, in 2010, compared to a high of 2,200 USD/tonne, a year before. However, in 2010, LME price didn’t go below 1,800 USD/tonne, while in 2009, in went as low as 1,600 USD/tonne.
The Company’s total primary aluminium production for last year was approx. 241,000 tonnes, while its investment programme was of USD 8.8 million. Alro continued its investments focused on increasing its wire rod production capacity, reducing utilities consumption, and consolidating the efficiency of the smelter. Moreover, the working conditions for the employees improved.
The financial results for 2010 reflect the cost reduction strategy implemented by the Company throughout the financial year. Alro secured the raw materials supply by reopening its alumina refinery in Tulcea, achieved a good cost structure by renegotiating supply contracts and finalised the loan restructuring process. Last year, Alro signed a syndicated loan with the European Bank for Reconstruction and Development that refinances most of the company’s existent debt. The EBRD retained $75 million on its account, with $105 million syndicated to commercial banks.
For further information please contact:
www.alro.ro
Florenta Ghita
Premium Communication
Bucharest Phone +40 (0) 21 411 01 52
Email florenta.ghita@premiumpr.ro
Notes to the Editors:
Alro SA is subsidiary of Vimetco, a global, vertically-integrated primary and processed aluminium producer. Alro is the largest aluminium production facility 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 SA are within the EU (Hungary, Poland, Greece, Germany and Romania). The Company also exports to the US and Asia. Alro is ISO 9001 certified for quality management and has NADCAP as well as EN 9100 certificate for aerospace production organizations, its products respecting the quality standards for primary aluminium on the London Metal Exchange – LME, as well as the international standards for flat rolled products.
