Romanian aluminum producer Alro’s profit declines on lower prices

Romanian aluminum producer Also Slatina recorded an adjusted net profit of some EUR 21 million in the first nine months of this year, down from EUR 32 million in the same period of 2015. The company’s turnover also went down from close to EUR 400 million to EUR 352 million despite higher sales volumes. “The aluminum quotation on the international markets significantly impacted the company’s financial results, generating lower sales value, despite higher sales volume. The average aluminum price on the London Metal Exchange (LME) was of 1,570 USD/tonne, in Q1-Q3 2016, compared to an average of 1,717 USD/tonne in the first nine months of 2015,” reads Alro’s financial report. Alro increased its sold quantities by 4%, mainly thanks to higher sales of aluminum billets (15,000 tonnes more than during the same period of 2015), as part of the company’s strategy to focus on high and very high value added products. The company’s production of primary aluminum stood at 205,400 tonnes, from 203,100 tonnes in the first nine months of 2015, and the production of processed aluminum reached 57,500 tonnes, from 59,800 tonnes, in Q1-Q3 2015. Alro is an integrated aluminum producer. Besides the aluminum plant at Slatina, the group also has an alumina plant - Alum Tulcea - which supplies it with raw materials, and an aluminum processing unit – Vimetco Extrusion. Alro is part of Vimetco, an international group based in Netherlands, which is controlled by Russian investor Vitaliy Machitski. Vimetco also owns aluminum plants in China and bauxite mines in Sierra Leone. Romania’s Alro to provide aluminum to Airbus starting 2017 editor@romania-insider.com