Alro reports net profit of USD 16.9 million for the first quarter of 2010

Operational highlights

• Primary aluminium production of 58,588 tonnes, compared to 56,196 tonnes in Q1 2009
• Production of flat rolled products of 10,977 tonnes, compared to 6,076 tonnes in Q1 2009

Outlook 2010

• Budgeted turnover for 2010 of USD 579.6 million
• Budgeted net profit for 2010 of USD 56.7 million
• Investment programme of approx. USD 15 million in 2010

Slatina, 19 May 2010 – Alro SA (BSE: ALR), the largest aluminium producer in Central and Eastern Europe, today announces standalone results for the first quarter ended 31 March 2010. The Company reports a net profit of RON 50.5 million (USD 16.9 million), in Q1 2010, compared to USD 8.3 million registered in Q1 of 2009. Alro’s turnover for Q1 2010 was RON 414 million (USD 139 million), compared to USD 118.7 million turnover in Q1 of last year.
 
“These results for the first quarter of this year confirm that we took the correct set of measures to ensure Alro’s viability”, said Marian Nastase, Alro’s Vice-President and Vimetco CFO. “We will continue to monitor the international aluminium market in order to swiftly adapt to any changes that may occur. Looking forward, we are continuing to pursue our strategy of vertical integration, focusing on high added value processed products.”

The Company’s total primary aluminium production for Q1 2010 increased to 58,588 tonnes, from 56,196 tonnes in 1Q 2009, while the production of flat rolled products amounted to 10,977 tonnes (Q1 2009: 6,076 tonnes).

In the first quarter of 2010, Alro continued to implement its cost control programme, reducing expenses on raw materials and other materials from RON 141 million in Q1 2009, to RON 130 million in Q1 2010. In Q4 2009, Alro restarted Alum, its alumina refinery in Tulcea. The reopening of Alum offers Alro the security of supply and also facilitates ongoing aluminium production.

Electricity and water costs increased by approximately 29% in Q1 2010, compared to the same period in 2009, from RON 85 million, to RON 109.8 million. The increase is mostly determined by the new pricing system from the electricity contract signed by the Company. The formula for electricity prices is based on a series of factors, including the aluminium price at the London Metal Exchange.

For 2010, Alro budgeted a production of electrolytic aluminium of 228,027 tonnes, compared to approximately 201,000 tonnes in 2009. The output of flat rolled products is budgeted at 40,000 tonnes this year, increasing from 31,700 tonnes in 2009. 

Alro budgeted a turnover of USD 579 million for 2010 and a net profit of USD 56.7 million. The amount of investments planned for 2010 totals USD 15 million. With the planned capital expenditure programme for 2010, overall investments made in Alro between 2002 and 2010 totalled USD 269 million.

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 N.V., 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.