Alba profit surges 53pc to $564m

Aluminium Bahrain (Alba) recorded a net income of $564 million for 2011, up by 53 per cent compared to $368 million in 2010.

The aluminium giant’s sales reached $2.349 billion in 2011 compared to $1.997 billion in 2010, a statement issued after a meeting of the company’s board today said.

Commenting on the full-year results, Alba’s chief executive Laurent Schmitt said: “Alba’s sound financial performance for 2011 was underpinned by sustained growth, enhanced productivity and higher profits thanks to our Continuous Improvement Program which was ahead of our target.”

Despite the social challenges faced in early 2011 coupled with some exceptional one-time costs as well as the decline of LME prices in the latter quarter of the year, Alba showed strong resilience reflected in its healthy financial performance and strong EBITDA levels, he said.

The EBITDA (excluding one-time costs) stood at $631 million in 2011, up 14 per year-on-year.

Meanwhile, the board proposed a dividend of $252 million for shareholders (of which S$102 million were paid as an interim dividend in August 2011)

Alba recorded an increase in production by 3.6 per cent and an increase in sales of 4.5 per cent in 2011. Sales of value-added products reached 63 per cent of total shipments in 2011 versus 62 per cent in 2010.

Looking ahead, Alba remains committed to future growth through pro-active initiatives that build upon developing a culture of continuous improvement, commitment to operational efficiency and global competitiveness, said Schmitt.

The chairman of Alba’s Board of Directors, Mahmood Hashim Al Kooheji added: 'Alba is a success story not only because of the positive results achieved in 2011 but more for the strong fundamentals the company has in place that made this growth possible.

“This achievement was made possible thanks to the efficiency of the management team and the loyalty of Alba’s workforce in meeting goals despite the prevailing challenges. Furthermore, distributing a cash dividend endorses Alba’s strong business model which continuously deliver returns to its shareholders.”