Vimetco operating profit up 16% in first 9 months

It is reported that Vimetco operating profit rose 16% to USD 142 million from USD 122 million in the 9 months to September.

Sales for the period were USD 1,661 million up from USD 1,048 million. The increase was mainly due to higher aluminum prices, increased premium and higher quantities sold as a result of bigger production capacities and increased demand on international markets.

Cost of goods sold increased to USD 1,429 million from USD 871 million mainly due to the increase in sold quantities and higher costs for raw materials. EBITDA was USD 233 million against the previous USD 204 million. Net profit fell to USD 26 million from USD 48 million.

Vimetco said that the aluminum market showed signs of recovery during the period with LME pricing increasing from a low of USD 1,900 per tonne to a high of USD 2,300 per tonne. As a result of the improved aluminum demand, the company's output reached 657,000 tonnes in the first 9 months from 429,000 tonnes in H1 2010.

Vimetco continued its focus on higher added value products with the production of processed aluminum reaching 103,000 tonnes already beating the 2009 full year level. The group said that it had worked to secure the supply of raw materials with Zhongfu Power acquiring a majority stake in some coal mines through one of its subsidiaries. It had consolidated the financing structure of its Romanian operation by signing a USD 180 million syndicated loan agreement with EBRD.

（Sourced from StockMarketWire.com）