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Profit of Rusal highly increased in Q3 2011

The largest aluminum producer in the world - Russian company Rusal, today announced better than expected results in the third quarter. This happens despite the deteriorating prospects for the global economy, pushing down the price of aluminum. In the third quarter of 2011 Rusal profit amounted to 432 million dollars after the same period of last year's positive result was much more modest - 29 million USD. Net profit adjusted for the share in Norilsk Nickel capital increases from 143 to 290 million USD. A positive result before interest, taxes, depreciation and amortization increased by 25% yoy to 705 million dollars in preliminary expectations of analysts for 661 million USD.
"The global automotive market remains a key driver for the increase in demand for aluminum. The construction sector remained weak in the leading economies, except China, and manufacturing of aluminum products in Europe is slowing", explains in communique the business managements of Rusal. The company predicts that by 2011 demand for aluminum will increase by 13% over the previous year and will reach 46 million metric tons. The current price of aluminum is about 2160 dollars per metric ton. This is a decrease of about 25 per cent peak this year, reached in May.
At Standard Chartered estimates of Rusal accounted for about 10 percent of aluminum production in the world. Since the beginning of the year the company's shares have lost nearly 50% of its value.