In January through September 2011, Alro reported a net profit of RON222.4 million.
“The results for the first nine months of 2012 have been significantly impacted by the worsening situation in international aluminum markets, which led to weaker demand and lower prices”, said Marian Nastase, Board Deputy Chairman at Alro.
Alro’s financial results were also affected by higher electricity costs after the company’s main supplier decided to renegotiate its delivery agreements.
“As a result, Alro had to purchase a significant quantity of energy on the energy exchange, which typically incurs high costs,” the company said in its financial report.
Alro said total sales fell 7% to RON1.58 billion in the January-September period, from RON1.7 billion in the same months of 2011.
Raw aluminum output reached 186,735 tons in January through September, down from 199,285 tons in the year-ago period. The company processed 48,676 metric tons of aluminum in the first nine months, compared with 41,642 tons of aluminum in the same period of 2011.
Dutch-based Vimetco controls 84.19% of Alro’s shares, while the remaining shares are distributed among various holders.
Wednesday, Alro’s shares closed down 3.72% at RON1.709 in Bucharest.. (EUR1=RON4.5388)