Alro reports Net Profit of RON 292.8 million for the first nine Months of 2008

Fri, 11/14/2008 - 01:00
Slatina, 14 November, 2008 – Alro SA (BSE: ALR), the largest aluminium producer in Central and Eastern Europe, announces its financial results for the nine months to 30 September 2008, according to the Romanian Accountancy Standards. The company reported a net unconsolidated profit of RON 292.8 million (USD 122.5 million*), and a turnover of RON 1.524 billion (USD 637.65 million). At the beginning of 2008, Alro budgeted turnover for the year of USD 861 million and a net profit of USD 150 million.

“Over the past few months we have seen a decrease in aluminium demand and the aluminium price weakened by 30% while production costs stayed high”, declared Marian Nastase, Vice president of the Board of Alro. “Despite these tough conditions, we remain optimistic about meeting the estimated budget for 2008, and we will take all necessary measures to remain competitive over the longer term. Moreover, we are embarking upon a rigorous plan to keep production costs at a competitive level. The company will focus strictly on its core activities and services and on crucial business assets. In uncertain times customer orientation becomes even more important. We are further strengthening focus and offering of flat rolled products, ensuring highest levels of product quality and reducing delivery times.”

Alro has a USD 63 million investment budget for 2008, from which it has contracted, in the first six months of this year, capital expenditure for technological and environmental projects of over USD 61 million. With these investments, the company has now invested a total of USD 273 million since the privatization, in 2002. Alro continues its technological investments and this year commissioned the Cold Rolling Mill, following a USD 4.8 million investment programme. Until the commissioning, the Cold Rolling Mill unit was closed, which led to a reduced production in high value added goods, a main component of Alro's portfolio.

Alro puts great emphasis on looking after its employees. It has therefore continued its investment projects here as well. In 2008 the company invested USD 4 million in work safety programs and equipment. In addition, USD 2.5 million has been budgeted for specific social responsibility projects, including health and safety, education and sports.

* Exchange rate USD/RON = 2.39