Alumina Limited has seen its first half profits plunge 86% after a poor six months in the aluminium market, the company announced yesterday.
The company’s net profit for the six months ended June 30 was $6 million, down from $43.8 million in the corresponding period last year.
Alumina made an underlying loss for the period of $14.6 million, compared to a profit of $151.7 million previously.
According to chief executive John Bevan, Alumina remains cautiously optimistic for the immediate future.
“Although we remain cautious about the outlook for aluminium demand there is evidence that customer destocking is slowing and early positive signs of economic recovery in some key markets,” he said.
“We firmly believe that the worst is behind us in terms of the impact of the global financial crisis and we are quietly confident that the market will continue to improve from here.”
Bevan said that although the past six months have been “extraordinarily difficult” for the entire aluminium industry, Alumina has been lucky to avoid the worst of it.
“A strong performance from our lower cost refineries and our reduced cost base has enabled us to withstand this severe downturn in market conditions and gives us confidence in our position going forward,” he said.