45% higher profit for Alro

Primary aluminium producer Alro Slatina last year made net profit worth 1,228bn ROL ($37 million), up 45% from the previous year. The profit growth occurred against a slight turnover decline. Alro’s sales amounted to 9,853bn ROL ($297 million), compared with 10,538bn ROL ($337 million) the year before. The turnover decline was due to the fact that Alro no longer sold bauxite last year. Back in 2002, Alro Slatina’s sole alumina (the raw material from which aluminium is made) supplier was Alum Tulcea. The cash flow problems of the latter had Alro buying the bauxite required by the alumina production and delivering it to Alum. The aluminium price has risen tremendously on the international market in the last two years. Whereas the aluminium’s quotation on commodities exchanges ranged between $1,300-$1,350/tonne in 2001, it now reaches some $1,630/tonne. On the other hand, the depreciation of the dollar on the international markets offset the output growth. Alro’s output was of 196,000 tonnes in 2003 compared with 187,000 tonnes in the previous year. ZF