Alro Records a Net Profit of 222 Million Lei in the First Nine Months of 2011
Tue, 15/11/2011 - 10:44
Financial and Operational Data / 9M 2011
- Turnover of 1.7 billion lei, compared to 1.3 billion lei in the first nine months of 2010
- Net profit of 222.4 million lei, up from 131.4 million lei in the same period of 2010
- Operating expenses increased by 321 million lei, of which energy and water costs rose by 141 million lei
- Primary aluminum production of 199,285 tons, compared to 179,575 tons a year earlier
- Processed aluminum production of 41,642 tons, compared to 33,874 tons at the end of Q3 2010
Slatina, November 15, 2011 – Alro SA (BVB: ALR), the largest aluminum producer in Central and Eastern Europe, reported a net profit of 222.4 million lei in the first nine months of this year, an increase of 91 million lei compared to the same period in 2010, and a turnover of 1.7 billion lei, which is 366 million lei higher than the same period last year, in accordance with Romanian accounting standards (RAS). Total primary aluminum production for the first three quarters of 2011 was 199,285 tons, an increase of 19,710 tons from 179,575 tons in the first nine months of 2010. Additionally, processed aluminum production increased by 7,768 tons to 41,642 tons.
“The financial results for the first nine months are proof of our sustainable strategy, while also reflecting favorable market conditions experienced for most of this period,” said Marian Năstase, Vice President of the Board of Directors of Alro. “The revenue growth reflects an overall increase in production, primarily for high value-added products, as well as a good aluminum price. However, currently, aluminum prices on the LME are beginning to decline. We are closely monitoring market developments to implement the most suitable solutions in the upcoming period.”
The aluminum price on the London Metal Exchange (LME) started this year just below 2,500 USD/ton, peaked at approximately 2,800 USD/ton in May, then dropped to 2,200 USD/ton by the end of September, and to 2,110 USD/ton by mid-November.
During this period, Alro recorded both higher aluminum deliveries, mainly for high value-added products, and higher prices (although the price advantage decreased toward the end of Q3 this year). Despite an increase of 321 million lei in operating expenses, Alro had operating revenues of 1.78 billion lei for the first nine months of 2011, compared to 1.36 billion lei in the same period of 2010. Thus, the company reported an operating profit of 332 million lei, compared to 227.6 million lei in the same period of 2010, offsetting the rise in operating costs, particularly energy and water costs, which increased from 343.9 million lei in 9M 2010 to 484.9 million lei in 9M 2011.
In the first nine months of 2011, Alro continued its investment program to improve product quality and range, enhancing the competitiveness of the plant.
For more information, please contact:
Florenţa Ghiţă
Premium Communication
Bucharest
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About Alro:
Alro is a subsidiary of Vimetco N.V., a global producer of primary and processed aluminum, vertically integrated. Alro is the largest aluminum producer in Central and Eastern Europe, with an installed production capacity of 265,000 tons per year.
The main markets for Alro's products are the European Union (Hungary, Poland, Greece, Germany, and Romania). The company also exports to the United States and Asia. The plant is certified with ISO 9001 for quality management and has NADCAP and EN 9100 certifications for aerospace production units, with its products meeting the primary aluminum quality standards of the London Metal Exchange (LME), as well as international standards for flat-rolled products.
The content of the website www.alro.ro is not incorporated into, and does not form part of, this announcement.