Alro SA the largest aluminium producer in Central and Eastern Europe announced the stand alone results for the first quarter ended March 31st 2009.
The Company reports a net profit of USD 8.3 million as compared to a loss of approximately USD 15.8 million registered in Q4 of 2008. Alro’s turnover for Q1 2009 was USD 118.7 million as compared to a USD 153.5 million turnover in Q4 of last year. The Company’s total primary aluminium production for Q1 2009 was of 56,196 tonnes and production of flat rolled products amounted to 6,076 tonnes.
Alro said that “The financial results for Q1 of 2009 are a direct result of the cost reduction plan implemented by the Company last year which focuses on core activities and services, relevant business assets and highest levels of product quality and short delivery times. The Company reduced raw material costs and renegotiated contracts with suppliers, where appropriate, re-used as much scrap aluminium as possible and cut down administrative expenses. Furthermore, it reduced aluminium production in order to adjust its output to the international aluminium demand. All the measures taken have resulted in a reduction of production costs by approx. 25% per tonne of aluminium.”
Mr Marian Nastase vice president of the Board at Alro said that “Alro has taken and will continue to take all the necessary measures, although some of them painful, in order to maintain the Company’s viability under the most difficult market conditions. We have taken drastic decisions to ensure the Company quickly adapted to the slowdown of the international economy. Since the outlook doesn’t indicate a major change in demand from our main customers, car-manufacturers or building companies, we are taking further measures to reduce costs. We understand the responsibility we carry towards our shareholders, employees and local community and our main objective is to implement a plan that allows Alro to overcome these unusually hard times.”
He added that “We will keep focusing our efforts and resources on high added value processed products and on meeting customers’ demand in terms of quality and delivery periods. We are continuously monitoring the international aluminium market and are prepared to adapt to any changes that may occur. Having a good level of investment in the business so far, range and quality of products, as well as a strong programme to reduce costs, we are confident the Company is well positioned to overcome the downturn and to increase output once demand picks up.”
