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.
Alcoa gave positive start of reporting season
The largest U.S. aluminum producer Alcoa gave a good start to the new reporting season in the U.S. with its financial results for the fourth quarter of 2010. The mining company announced its largest profits for the last nine quarters, or more than two years because of soaring prices and demand for aluminum by momentum in the business is expected to continue this year. The net profit of Alcoa for the fourth quarter of 2010 amounted to 258 million dollars, or 24 cents a share, compared with a loss of 277 million dollars, or 28 cents a share, a year ago. The sales of the company, however, disappointed with the weaker than expected growth of 4% annually to 5.65 billion dollars. Analysts forecasts were for bigger sales of 5,75 billion dollars. As a result, shares of Alcoa cheaper by 1.7 percent to 16.21 dollars after the end of regular trading on the New York Stock Exchange. The market capitalization of Alcoa rose by nearly 27% in the last quarter of 2010, but the company's shares ended last year with a slight decline of nearly 3%. The strong appreciation of the shares of Alcoa in late 2010 helped jump in aluminum prices, which traded on average 2,365 dollars per tonne on the London Metal Exchange in the last quarter of 2010 This is the highest price levels of its third quarter 2008.
Alcoa with strong quarterly report
The company to produce aluminum Alcoa launched the reporting season of American Stock Exchange after the report submitted yesterday for the second quarter. It proved to be stronger than projected, and it creates positive expectations and other leading companies. In the second quarter of 2010 Alcoa managed to hit the profit of 136 million dollars, or 13 cents per share. For the same period last year was recorded a loss of 454 million dollars, or 47 cents a share, writes AP. The revenue the company did jump over 22 percent annually - from 4.24 billion dollars 5.19 billion dollars. An interesting detail of the report is fairly sharp drop in revenue from commercial construction sector in North America, as their share in total income fell from 27 to 23 per cent. These results exceeded analysts' expectations, which were for profit of 12 cents per share based on 5.05 billion revenue. This has led to increased Alcoa shares by 2,7 per cent in the hours trading after the official trading session in New York. The report of Alcoa was expected with great interest from the market because a company is the first index of U.S. blue-chip Dow Jones Industrial Average.
Rusal turns back on green for the first quarter of 2010
The Russian giant blond, the world's largest aluminum producer, reported net profit of 247 million dollars for the first quarter of this year compared to a loss of 638 million dollars for the same period in 2009, Reuters reported. The improvement in results is due to the increased price of aluminum. The Group sales mark a growth of 31% annually to 2.33 billion. However, aluminum production has dropped by 4 percent for the quarter and reached 973 thousand tons, while that of aluminum oxide gave a 14 per cent to 1.8 million tonnes. According to Oleg Deripaska, who is executive director of Rusal, the company is well positioned to gradually return to previous levels of production. "Market conditions continue to improve, mainly due to the increase in demand from the U.S.," he says. In late January the company was listed in Hong Kong and Paris, as supply was monitored with great interest by investors. The Russian bank saved the company in the beginning of the year with Cheap Fixed Rate Mortgage loanfor 2 billion USD in case to prevent large bankruptcy and recession of the Russian Economy.
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