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ALRO
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Press Releases
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Current Report According to Article 225 of Law No. 297/2004

Fri, 12/08/2011 - 13:03

Financial and Operational Data

  • Turnover of 1.14 billion lei (381 million USD*), up from 875.4 million lei (277 million USD*) in the first half of 2010
  • Net profit of 177.4 million lei (59.5 million USD*), compared to 28.9 million lei (9.16 million USD*) in the first half of 2010
  • EBITDA of 227.6 million lei (76 million USD*), up from 139 million lei (44 million USD*) in the first half of 2010
  • Primary aluminum production of 130,458 tons, up from 118,630 tons in the first half of 2010
  • Processed aluminum production of 28,946 tons, up from 23,583 tons in the first half of 2010

Slatina, August 12, 2011 – Alro SA (BVB: ALR, "the Company" or "Alro"), one of the largest aluminum producers in Central and Eastern Europe, reported a net profit of 177.4 million lei (59.5 million USD*) for the first half of 2011, compared to 28.9 million lei (9.16 million USD*) in the same period last year, in accordance with Romanian accounting standards (RAS). The turnover for the first half of this year was 1.14 billion lei (381 million USD*), an increase from 875.4 million lei (277 million USD) in the first half of 2010.

Alro increased both its primary aluminum production and processed aluminum production in the first half of 2011. The total primary aluminum production in H1 2011 was 130,458 tons, a 10% increase from 118,630 tons in the same period of 2010. The company also raised processed aluminum production by nearly 23%, to 28,946 tons in the first half of this year.

"The strong financial results reported by Alro in the first half of this year are evidence of the viability of our long-term strategy, focused on increasing the production of high value-added products and strengthening our business," stated Marian Năstase, Vice President of the Board of Directors of Alro. "We have achieved a good cost structure, secured necessary raw materials, and restructured several loans. All of these, supported by improvements in the aluminum market, have created a stable foundation for our development."

The company increased its operating profit (EBIT) by 31 million USD in the first half of this year compared to the same period in 2010. EBIT was 227.6 million lei (76 million USD) in the first half, compared to 139 million lei (44 million USD) in the same period last year. The increase in operating profit was driven by both the appreciation of aluminum prices on the London Metal Exchange (LME) and the increase in production capacity for high value-added products. In the first six months of this year, the average price per ton of aluminum on the LME was 2,550 USD, compared to an average price of 2,160 USD in the first half of 2010.

In the first half of 2011, Alro focused on improving the quality and range of its products. The company launched an investment program worth 43.6 million lei to enhance the competitiveness of its processing sector. Alro signed a financing agreement with the Ministry of Economy, Trade, and Business Environment, as the managing authority for the Sectoral Operational Programme "Increasing Economic Competitiveness." This operational program, co-financed by the European Union, aims to strengthen and modernize the productive sector through the acquisition of equipment for finishing aluminum sheets, strips, and plates, as well as aluminum alloys. The total value of the non-reimbursable financial assistance from the European Union is 17.18 million lei.

In the first half of this year, Alum Tulcea, the company’s alumina refinery, took over the operation of bauxite mines in Sierra Leone, ensuring a consistent and predictable supply of raw materials.

*Average exchange rate in the first half of 2011: 1 USD = 2.98 lei
Average exchange rate in the first half of 2010: 1 USD = 3.16 lei

For more information, please contact:

www.alro.ro

Florenţa Ghiţă
Premium Communication
Bucharest
Phone +40 (0) 21 411 01 52
Email florenta.ghita@premiumpr.ro

Note for Editors:

Alro is a subsidiary of Vimetco N.V., a global producer of primary and processed aluminum. Alro is one of the largest aluminum producers in Central and Eastern Europe, with an annual production capacity of 265,000 tons of electrolytic aluminum.

The main markets for aluminum produced by Alro are in the European Union (Hungary, Poland, Greece, Germany, and Romania). The company also exports to the USA and Asia. Alro is certified ISO 9001 for quality management, accredited by NADCAP (National Aerospace and Defence Contractor Accreditation Programme), and has EN 9100 performance certification for compliance with aerospace industry requirements. Its products meet the quality standards of the London Metal Exchange (LME) for primary aluminum, as well as international standards for aluminum sheet products.