Alro reports net profit of RON 222 million for the nine months ended 30 September 2011

Tue, 11/15/2011 - 10:48

Financial and operational highlights for the nine months ended 30 September 2011

• Turnover of RON 1.7 billion, as compared to RON 1.3 billion in 9M 2010
• Net profit of RON 222.4million, up from RON 131.4 million in 9M 2010
• Increase in operational expenses of approximately RON 321 million in 9M 2011, as compared to 9M 2010, of which RON 141 million was attributable to increased energy and water expenses
• Primary aluminium production of 199,285 tonnes, as compared to 179,575 tonnes in the same period of 2010
• Processed aluminium production of 41,642 tonnes, as compared to 33,874 tonnes in 9M 2010

Slatina, 15 November 2011 – Alro SA (BSE: ALR) (“Alro”), the largest aluminium producer in Central and Eastern Europe, today announces its financial results, prepared in accordance with Romanian Accountancy Standards, for the nine months ended 30 September 2011. Alro reported a net profit of RON 222.4 million in 9M 2011, which is a RON 91 million increase compared to 9M 2010, and turnover of RON 1.7 billion in 9M 2011, a RON 366 million increase as compared to 9M 2010. Alro’s total primary aluminium production for 9M 2011 was 199,285 tonnes, an increase of 19,710 tonnes compared to 179,575 tonnes in 9M 2010. The output of processed products in 9M 2011 also increased by 7,768 tonnes, compared to 9M 2010, to 41,642 tonnes.     

“The results for the first nine months of 2011 are a demonstration of the strength of our strategy, but they are also a reflection of the supportive market conditions during most of the period”, Marian Nastase, Vice President of the Board of Alro said.“The overall increase in revenues reflected an increase in production, mainly for higher added value products, as well as a strong aluminium price. However, the LME price is now starting to decrease, we are carefully monitoring these developments in order to implement the most appropriate solutions for the future.”

The aluminium price on the London Metal Exchange (LME) opened this year below USD 2,500/tonne, rising to just under USD 2,800/tonne in May 2011. It has since fallen to USD 2,200/tonne (as at the end of September 2011), and to approximately USD 2,110/tonne in mid-November 2011.

During the period, Alro registered both higher shipments of aluminium, focusing on higher added value products, and higher prices (though the price advantage decreased by the end of 9M 2011). Despite an increase of operating expenses of RON 321 million for 9M 2011, compared to 9M 2010, Alro achieved higher operating income of RON 1.78 billion, for 9M 2011, as compared to RON 1.36 billion in the same period of 2010. This resulted in an operating profit of RON 332 million in 9M 2011, as compared to RON 227.6 million in 9M 2010, thereby offsetting the increase in operating costs, particularly in the energy and water expenses which increased from RON 343.9 million in 9M 2010, to RON 484.9 million, in 9M 2011.

In the first nine months of 2011, Alro continued with its investment programme to improve the quality and range of its products, with the aim of increasing the competiveness of its processing plant.

For further information please contact:

www.alro.ro
Florenţa Ghiţă
Premium Communication
Bucureşti
Telefon +40 (0) 21 411 01 52
Email florenta.ghita@premiumpr.ro

Notes to the Editors:

Alro is subsidiary of Vimetco N.V., a global, vertically-integrated primary and processed aluminium producer. Alro is the largest aluminium producer 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). Alro 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. Alro’s products adhere to the quality standards for primary aluminium on the LME, as well as international standards for flat rolled products.

The contents of the website www.alro.ro are not incorporated into, and do not form part of, this announcement.