Romania's Alro FY net profit down 44 pct

BUCHAREST, Feb 18 (Reuters) - Romania's Alro Slatina , one of Europe's largest aluminium smelters, said on Wednesday its net profit fell 44 percent in 2008 due to plunging metal prices. Alro, majority owned by Netherlands-based Vimetco , said its net profit dropped to 244 million lei ($71.4 million) from 436 million lei in 2007. Turnover stood at almost 2 billion lei. "Lower income for Q4 2008 (reflected) the deterioration in international market conditions," Alro said in a statement. "By the end of 2008, aluminium prices had fallen by as much as 56 percent (and) although the cost of raw materials started declining, the effects start to show in the financial results after 3-6 months." Alro produced 288,000 tonnes of aluminium in 2008 and plans to cut production by 65,000 tonnes this year. In a cost-reduction programme, the company sacked 936 employees last year and shut down one pot line. "Having a ... fair debt level and sufficient financial liquidity, while continuing to pursue cost reduction opportunities, we are confident that Alro will manage the current international downturn," said Marian Nastase, vice-president of Alro's board. The most pessimistic analyst forecast obtained by Reuters was 128.5 million lei, while the most optimistic was 345 million. ($1=3.418 Lei) (Editing by Hans Peters)