Alro, a unit of Dutch-registered holding Vimetco, posted net profit of 5.69 million lei (EUR1.3 million) in January-March, compared with a net loss of RON137.65 million in the same period of 2014.
The company posted sales revenues of RON598.2 million, up 21% against RON496.4 million in the first quarter of last year.
“During the first quarter of 2015, Alro continued to focus on supplying high value added products, increasing its processed aluminum production to approximately 20,900 metric tons, from 20,100 tons in Q1 2014,” the company said Friday in a news release. The total primary aluminum production increased to 66,300 tons, from 62,600 in the first three months of 2014.
The sales revenue benefitted from the aluminum price increase on the London metal exchange, from an average of $1,708 per ton in January-March 2014, to $1,800 per ton in the same period of 2015, Alro also said.
The company said it posted an adjusted net profit of RON23 million from a loss of RON44 million in January-March 2014.
The adjusted result is the net result plus/minus non-current assets impairment, 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, Alro’s management considers the adjusted net result as a more relevant indicator for the financial performance of the company.”
Friday morning in Bucharest, Alro share traded up 0.8% in a slightly declining market.