Alro reports net profit of RON 29 million for the first half of 2010

Fri, 08/13/2010 - 10:23

Financial and operational highlights

• Turnover of RON 875.4 million (USD 277 million*)
• Net profit of RON 28.9 million (USD 9.16 million*)
• Primary aluminium production of 118,630 tonnes
• Processed aluminium output of 23,583 tonnes 

Slatina, 13 August, 2010 – Alro SA (BSE: ALR), the largest aluminium producer in Central and Eastern Europe, today announces its financial results of the first half of 2010, ended 30 June 2010, according to Romanian Accountancy Standards. The Company reported a net profit of RON 28.9 million (USD 9.16 million*), and a turnover of RON 875.4 million (USD 227 million*). Alro’s total primary aluminium production for H1 2010 was 118,630 tonnes, a level comparable to the one registered in H1 2009 (approx 112,465 tonnes). The output of processed products reached 23,583 tonnes, almost double compared to H1 2009.    

“This year’s results are yet another proof that we correctly address the downturn of the economy and implemented the appropriate measures to help us remain competitive”, Marian Nastase, Vice President of the Board of Alro said. “Alro registered a healthy operating profit, based both on the increase of the aluminium market, and on the cost cuts achieved over the past year. We also succeeded in consolidating our financial structure, and the positive results will show over the next period.”
 
Despite an increase by RON 177 million (USD 56 million) for the operating expenses in H1 2010, compared to H1 2009, Alro registered an operating profit of RON 139 million (USD 43.9 million), compared to an operating loss of RON 20.45 million (USD 6.43 million) in H1 2009. The operating income increased in H1 2010 by RON 336 million (USD 106 million). The increase was determined partly by the higher aluminium quotation on London Metal Exchange, which reached an average of USD 2,160/tonne in H1 2010, compared to approx USD 1,459/tonne in H1 2009. Also, the company almost doubled the sales of processed products, which have higher selling prices. This partially offset the increase of the costs with utilities, from RON 170.9 million, to RON 226.6 million, in H1 2010.
Alro continued to limit its investments to projects already in progress, mainly focusing on increasing product quality and the output of flat rolled products.

At the beginning of August, Alro finalised the loan restructuring process and signed the syndicated loan with the European Bank for Reconstruction and Development (EBRD) that refinances most of the company’s existent debt. The EBRD will refinance $75 million and $105 million to be syndicated to commercial banks. The completion of the refinancing, as main solution for the financial restructuring of the debts of the company will allow the financial expenses to come back to the normal level.

 
*Average exchange rate for H1 1USD = 3.16 RON

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