Alro of Romania reports upbeat numbers for quarter

Romania’s Alro SA, an aluminum producer in Central and Eastern Europe, has reported a 20 percent increase in sales for the first quarter of 2015 compared with the same period in 2014, to Romanian Leu (RON) 598 million (US $154 million).

 

In a press release, the company also reported improved operating results for 2015’s first quarter, which was tempered by the strong appreciation of the U.S. dollar against the Romania’s currency, inflating debt values and resulting in a net profit of RON 6 million (US $1.54 million), compared with a net loss of RON 138 million (US $35.5 million) for the first quarter of 2014.

 

Alro is subsidiary of Vimetco N.V., a global aluminum producer based in the Netherlands.

 

“Our results prove that we have a sound and strong business, that we took the correct measures to reduce costs and to adapt to the international context and that we focused on the correct product mix,” says Marian Nastase, president of Alro’s board of directors.

 

Nastase says that the company’s cash flow suffered because of a payment made for 2014 green certificates, but that the company has reduced production costs and adjusted product mix and quality, contributing to the improved first quarter results.

 

During the first quarter of the year Alro focused on supplying high-value-added products, increasing its processed aluminum production to about 20,900 metric tons, compared with 20,100 metric tons in the first quarter of 2014. Total primary aluminum production increased in the first quarter of 2015 to 66,300 metric tons, from 62,600 metric tons the same time last year.

 

Alro also reports that the company continues to focus on increasing the capacity of its Eco scrap facility to the first-level stage of 50,000 metric tons per year. Moreover, the company expects 2015 capital expenditures of about $59 million. 

 

The company reports that aluminum sales increased in value, as well as a result of higher spot aluminum prices on the London Metal Exchange, to an average of $1,800 per metric ton during the first quarter of 2015.