Alumina's full year losses widen

ALUMINA'S full year net losses have blown out and the troubled aluminium producer is bracing itself for more uncertainty ahead.

The group's net loss for the 12 months to December 31 tripled to $US152.9 million from $US47.3 million ($148.42 million from $45.91 million) in 2011.

Foreign exchange losses of nearly $US90 million ($87.36 million) and "other" losses of the same amount contributed to the loss.

Excluding those items, Alumina recorded a net loss of $US62.1 million ($60.28 million) compared to a $US126.6 million ($122.89 million) net profit in 2011.

Its underlying loss was $US52.5 million ($50.96 million) compared to an underlying profit of $US128 million ($124.25 million) previously.

Revenue fell to $US5.8 billion from $US6.7 billion ($5.63 billion from $6.50 billion).

Alumina cut its final divided to nil, from six US cents.

Chief executive John Bevan said that while 2013 had begun on a positive note with prices recovering from 2012, uncertainty lay ahead.

"The outlook for the market in 2013 remains uncertain with macro-economic conditions, particularly in Europe, remaining difficult," he said today.

Melbourne-based Alumina's only earning asset is its 40 per cent stake in Alcoa World Alumina and Chemicals (AWAC), with Alcoa holding the controlling remaining 60 per cent. AWAC owns aluminium smelters at Portland and the struggling Point Henry plant, near Geelong, both in Victoria.

AWAC recorded a net loss of $US91.9 million ($A90.13 million) in 2012, compared to a net profit of $US469.7 million ($460.67 million) a year earlier. Revenues fell 13 per cent to $US5.8 billion ($5.69 billion), largely as a result of weak prices.

"Despite the very difficult market conditions, we are heartened by the sound operational performance of AWAC and the progress made on important initiatives that will ultimately strengthen the company's position and improve returns to shareholders," Mr Bevan said.

The results come a week after the Chinese government-owned CITIC took a 13 per cent stake in Alumina for $452 million.

Falling aluminium prices and the high Australian dollar have put Alumina under financial pressure. China's overproduction of aluminium has driven down prices that were above $US3000 a tonne before the global financial crisis and were trading around $US2143 a tonne today.

Weaknesses in the global economy in 2012 have hurt demand for aluminium used in products such as aircraft, cars, drink cans, the construction industry and other appliances.

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