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ALRO
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Press Releases
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Alro reported a net adjusted loss of RON17 million*, in H1 2013

Wed, 14/08/2013 - 10:02

Financial and operational highlights

  • Turnover of RON 1.06 billion, as compared to RON 1.16 billion, in H1 2012
  • Primary aluminium production of 124,648 tonnes, as compared to 124,567 tonnes in H1 2012
  • Processed aluminium production of 37,869 tonnes, as compared to 34,227 tonnes in H1 2012

Slatina, 14 August 2013 – S.C. Alro S.A. (BSE: ALR, “The Company” or “Alro”), one of the largest aluminium producer in Central and Eastern Europe, announces today its financial results, in accordance with the International Financial Reporting Standards (IFRS), for the six months ended 30 June 2013.

The Company reported in H1 2013 a net adjusted loss* of RON 17 million, compared to a net adjusted profit of RON 26 million, in H1 2012. The turnover for H1 2013 was of RON 1.06 billion, compared to RON 1.16 billion, in H1 2012.

“The financial results of the Company for the first half of 2013 continue to be impacted by factors outside the aluminium industry, that are beyond our control”,said Marian Nastase, Chairman of the Board of Alro. “The overall energy costs, including the ecotaxes, continued to put pressure on the Company’s final results. Moreover, the aluminium prices on the international market are reaching new minimum levels. Forced to face this complex and unfavorable context, Alro implemented new solutions to cut costs and kept its focus on highly processed products, in order to maintain its competitiveness.”

During H1 2013, the Company continued to invest in expanding its high added value production capacity and thus, it has managed to increase the supply of processed aluminium. The primary aluminium sales decreased slightly compared to H1 2012 (71,168 tonnes in H1 2013, compared to 73,624 tonnes during H1 2012). The Company used internally more slabs to support the increase in supply of processed products. At the same time, Alro continued to invest in processing the aluminium scrap to save energy costs (generated by the energy consumption taxes – green certificates, cogeneration tax etc.). In H1 2013, Alro reported an increase of sales for the processed products, from 32,912 tonnes, in H1 2012, to 36,711 tonnes.

Overall, Alro Group reported during the first six months of this year, a total production of primary aluminium of 124,648 tonnes, a level similar to the one reported during H1 2012 (124,567 tonnes). The Group increased its processed aluminium production, by more than 3,000 tonnes, from 45,356 tonnes during H1 2012, to 48,518 tonnes during H1 2013. The alumina production supplied by Alum Tulcea registered a slightly decrease to 203,320 tonnes, compared to 215,800 tonnes in H1 2012, while the bauxite production decreased to 368,989 tonnes during H1 2013, compared to 586,758 tonnes during H1 2012, due to unfavorable conditions faced in Sierra Leone (climate, social differences etc.).

* The net adjusted profit represents the net profit of the Company minus fixed assets depreciation, plus/ (minus) the (loss)/ profit from derivative financial instruments that do not qualify for hedge accounting, plus/ (minus) deferred tax.

 Given the significant impact generated by the mark to market of the derivative financial instruments that do not qualify for hedge accounting, the management of Alro considers the Net Adjusted Profit as a relevant indicator for the financial performance of the Company.

 

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 S.A.

Alro is a subsidiary of Vimetco N.V., a global, vertically-integrated primary and processed aluminium producer. Alro is one of 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 European Union (i.e. Hungary, Poland, Greece, Germany and Romania). Alro also exports to the U.S.A 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.

Alro Group

The companies that are part of Alro Group are: Alro, the aluminium producer, Alum the alumina producer, Sierra Mineral Holdings I Ltd. the bauxite producer, Vimetco Extrusion the extruded profiles producer. Having this structure, the Group ensured an integrated production chain, securing the raw materials for Alro.