In the first six months of 2011, Alro reported a net profit of RON177.4 million.
“The falling demand, as well as lower prices and difficulties in procuring electricity have been affecting the company’s results,” said Marian Nastase, Board Deputy Chairman at Alro.
Alro said total sales fell 6.6% to RON1.06 billion in the first half, from RON1.13 billion in the same period of 2011.
Revenues were down 12.5% to RON1.24 billion in January through June, while costs increased 1.2% to RON1.22 billion.
“The global aluminum market entered a downward path in the first half of 2012, negatively affecting the entire industry. Average prices on the London Metal Exchange reached $2,079 a ton, down by some $500 a ton compared with the first six months of 2011,” Alro said in its financial report.
Raw aluminum output reached 124,567 tons in January through June, down from 130,458 tons in the year-ago period. The company processed 34,227 tons of aluminum in the first six months, compared with 28,946 tons of aluminum in the same period of 2011.
Alro’s results are unaudited and computed in accordance with IFRS.
Dutch-based Vimetco controls 84.19% of Alro’s shares, while the remaining shares are distributed among various holders.
At 10:05 am Friday, Alro’s shares traded flat at RON2.511 in Bucharest, amid a slightly declining market. (EUR1=RON4.4617)