The increasing aluminium prices on the foreign markets and the start of the integration process of Alprom Slatina have significantly influenced the financial results of Romanian aluminium producer Alro Slatina in the first half of the year.
The company reported turnover worth $208 million in the first six months of 2004, up 45% from the corresponding period of last year. Net profit stood at 30 million dollars, up about 33%.
The company's performance improved as this is a very good time for aluminium plants, since prices on the London market surged from 1,500 USD/tonne last year to more than 1,800 USD/tonne in the first half this year.
Moreover, the main shareholder of both Alro and Alprom, American trade company Marco International, has started the integration process of the two companies' operations.
"At this point, Alprom is only processing the aluminium from Alro. Most of the sales of Alro-Alprom products are now being conducted exclusively through Alro," says Peter Braun, Marco International country manager for Romania and Alro vice-president.
Previously, Alprom would process the aluminium from Alro, but sold the resulting products under its own brand.
Alro's surging indicators are thus corresponding to a drastic drop in Alprom's turnover and profit. The company ended the first half with losses worth 111.9 billion ROL (2.8 million euros), compared to profit worth 25.7 billion ROL at the end of June 2003. Moreover, turnover dropped from 1,318.4 billion ROL to 276.6 billion ROL.
Given the encouraging conditions on the international markets, Alro will increase its production capacity by some 5,000 tonnes, up to 210,000 tonnes.
laurentiu.ispir@zf.ro
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