Alro Switches To Profit in First Half On 25% Higher Sales

08.14.2015 By Bogdan Neagu

Romanian aluminum smelter company Alro (ALR.RO) Friday reported a net profit of 67.8 million lei (EUR15.3 million) for the first half of the year, versus a loss of RON128.7 million in the same period of 2014.

The company increased its aluminum production during the first half and also benefitted from higher metal prices on international exchanges. Its sales revenue rose to RON1.22 billion from RON965.8 million in January-June 2014.

The Alro Group, which includes both primary and processed aluminum production but also bauxite mining in Sierra Leone and alumina production in Romania, reported net profit of RON84.4 million in the first half, compared with a net loss of RON138.4 million in the year-earlier period.

Sales of the group rose to RON1.28 billion from RON1.02 billion in the first six months of 2014.

„The financial results for this period demonstrate that we implemented the correct measures to increase efficiency and to reduce costs,” said Marian Nastase, President of Alro.

Alro Group registered a total primary aluminum production of 134,760 metric tons in the first half, compared to 127,605 tons in the same period of 2014. The Group’s processed aluminum production also rose to 51,604 tons, from 48,828 tons in January-June 2014. The group is continuing its strategy focused on higher-value added products, Alro said in a statement.

“We continue to be one of the biggest aluminum producers in Central and Eastern Europe, thanks to our sound strategy focused on increasing efficiency. In the future, we are planning to increase the high value added products volume for the automotive and aerospace industries,” said Gheorghe Dobra, chief executive officer of Alro.

The company has a budget of $59 million for investments in 2015. In the past ten years, the company invested more than $500 million in its production capacities.