Aluminium producer Alro Slatina closed the first quarter of this year with a net adjusted profit of RON 41 M, 78 percent higher compared to the one registered in the same period last year (RON 23 M).
“Bearing in mind the significant impact generated by the marking-to-market of derivatives that do not qualify for hedge accounting, starting in the first quarter of 2013, the company’s leadership decided that the “net adjusted result” indicator represents a far more relevant indicator with which to keep track of the company’s financial performance,” a company communiqué points out.
During the aforementioned period, the company’s turnover stood at RON 564 M, down from the RON 598 M registered in January-March 2015.
In the first three months, Alro’s aluminium sales grew both in the primary as well as in the processed sector. “Nevertheless, the company registered an EBIT of RON 23 M, in contrast to RON 96 M in Q1 of 2015, against the backdrop of the significant slump in the price of aluminium on the London Metal Exchange (LME),” the communiqué reads.
Despite the volatility of the aluminium market, Alro continues, in 2016 too, its long-term strategy, staking on a growth in the share and quantity of added-value products, and also on the lowering of energy dependence through the continued drop in consumption and the hiking of the degree of aluminium waste recycling. For these investments, the company approved a budget of USD 53 M for 2016, its sources of financing being already covered to a significant extent.
Alro is a subsidiary of Vimetco NV, a global primary and processed aluminium company, vertically integrated. Alro is the largest aluminium producer in continental Europe (outside of Russia and the Scandinavian Peninsula), with an installed production capacity of 265,000 tpa.
Alro’s main market is the European Union (Hungary, Poland, Greece, Germany and Romania). The company exports to the U.S. and Asia.