Aluminium producer Alro doubles net profit to USD 50.4 mln on international market recovery

Aluminium producer Alro posted a preliminary net profit of USD 50.4 million last year, almost double on the previous year, the company has announced. Its turnover was of USD 570 million, up on the EUR 334 million posted the year before. The company paid a profit tax of EUR 7.9 million, while its other taxes amounted to EUR 19 million. “Alro consolidated its position, both technologically and financially, and it benefited from the slight but continuous recovery of international market”, said Gheorghe Dobra, General Manager of Alro Slatina. “We implemented a cost reduction strategy ever since 2008, and having a sound and competitive cost structure, we were able take advantage of the improved situation from the aluminium market, with a higher London Metal Exchange (LME) price compared to 2009. We are well prepared to take all appropriate measures depending on international context,” he went on. The aluminium price increased on London Metal Exchange to as much as USD 2,450/tonne, in 2010, compared to a high of USD 2,200 /tonne, a year before. However, in 2010, LME price didn’t go below USD 1,800 /tonne, while in 2009, in went as low as USD 1,600 /tonne. The company’s total primary aluminium production for last year was approx. 241,000 tonnes, while its investment program was of USD 8.8 million. Alro continued its investments focused on increasing its wire rod production capacity, reducing utilities consumption, and consolidating the efficiency of the smelter. Last year, Alro signed a syndicated loan with the European Bank for Reconstruction and Development that refinances most of the company’s existent debt. The EBRD retained USD 75 million on its account, with USD 105 million syndicated to commercial banks. Alro SA is subsidiary of Vimetco, a global primary and processed aluminium producer. editor@romania-insider.com