Alro reports net profit of RON 177 million for the first half of 2011

Financial and operational highlights

• Turnover of RON 1.14 billion (USD 381million*), up from RON 875.4million (USD 277 million) in 1H 2010
• Net profit of RON 177.4 million (USD 59.5 million*), compared to RON 28.9million (USD 9.16million) in 1H 2010
• EBITDA of RON 227.6 million (USD 76 million*), up from RON 139 million (USD 44 million) in 1H 2010
• Primary aluminium production of 130,458 tonnes, up from 118,630 tonnes in 1H 2010
• Processed aluminium output of 28,946 tonnes, up from 23,583 tonnes in 1H 2010

Slatina, 12 August, 2011 – Alro SA (BSE: ALR, “The Company” or "Alro"), one of the largest aluminium producers in Central and Eastern Europe, today announces its financial results of the first half of 2011 ended 30 June 2011, in accordance with Romanian Accountancy Standards. In the first half of 2011, the Company reported a net profit of RON 177.4 million (USD 59.5 million*), compared to a net profit of RON 28.9million (USD 9.16million) in the first half of 2010. The turnover for the first half of 2011 reached RON 1.14 billion (USD 381million*), increasing from RON 875.4million (USD 277 million) in the first half of 2010.

Alro increased both its primary and its processed aluminium production in the first half of 2011. The total output of primary aluminium for the first half of 2011 was 130,458 tonnes, up 10% from 118,630 tonnes in the first half of 2010. The Company increased its output of processed aluminium by almost 23%, to of 28,946 tonnesin the first half of 2011.

“The strong financial results achieved by Alro in the first half of the year are a proof of the viability of our long term strategy, which is focused on increasing the output of high value-added products and on consolidation of the business”, Marian Nastase, Vice President of the Board of Alro said.“We achieved a good cost structure, we consolidated our business to secure the supply of raw materials and we partially restructured the loans. These improvements, along with an improving aluminium market, created a sound foundation that we could build on”.

The Company increased its operational profit by USD 31 million in the first half of this year, compared to the first half of 2010. Accordingly, EBIT represented RON 227.6 million (USD 76 million) for the first half of 2011, compared to RON 39 million (USD 44 million in the first half of 2010. The increase in operating profit was due by both higher aluminium quotation on London Metal Exchange (LME), and higher output of value-added products. In the first half of 2011, aluminium reached an average of USD 2,550/tonne on the LME, compared to an average of USD 2,160/tonne in the first half of 2010.

In the first half of 2011, Alro focused on improving the quality and the range of its products. The Company started a RON 43.6 million investment programme aimed at increasing the competitiveness of its processing plant. Alro signed a financing agreement with the Romanian Ministry of Economy acting as managing authority for the Sectorial Operational Programme “Increase of Economic Competitiveness”. The operational programme, co-financed by the European Union, relates to the strengthening and upgrading of the productive sector through the purchase of aluminium sheets, coils and strips and aluminium alloys finishing equipment. The total value of the financial assistance from the EU is RON 17.18 million.

In the first half of 2011, Alum Tulcea, the alumina refinery of Alro, took over the bauxite mining operations in Sierra Leone, thus ensuring it’s the constant and cost predictable supply with raw materials.

*Average exchange rate for 1H 2011 1USD = 2.98 RON

Average exchange rate for 1H 2010 1USD= 3.16 RON

For further information please contact:

www.alro.ro

Notes to the Editors:

Alro is a subsidiary of Vimetco N.V., a global, vertically-integrated primary and processed aluminium producer. Alro is one of the largest aluminium production facilities 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). 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 certificates for aerospace production organizations, its productsmeet the quality standards for primary aluminium on the London Metal Exchange (LME), as well as international standards for flat rolled products.

PDF: 

120811_Alro Press Release.pdf