Alcom on track to profitability after three years of losses

Aluminium Co of Malaysia Bhd (Alcom) is on track to return to the black for the financial year ending March 31, 2016 after three years of losses. The aluminium sheet and foil producer told Bursa Malaysia that it made a net profit of RM3.11mil in the third quarter ended December 31, 2015 compared with a loss of RM1.65mil a year earlier.

“The improved revenue per metric tonne, especially for the export sales, and a tight rein on direct costs were the main contributory factors for this improved result,” the company said.

The better third-quarter performance led the Klang-based company to swing to a net profit of RM2.14mil for the nine-month financial period ended December 31, 2015, from a loss of RM3.93mil in the previous corresponding period. Revenue for the financial year to-date grew 3.9% to RM209.74mil against the same period last year.

Alcom, which posted a group loss attributable to shareholders of RM1.64mil in the 2015 financial year, appears optimistic of this financial year’s prospects.

“The group is expected to close the financial year with encouraging results, especially since the group’s net income for the cumulative three quarters has turned positive as compared to a net loss for the cumulative three quarters in the last financial year,” it said.

Alcom said that in the final quarter, it would continue with improvement initiatives, including better product mix, increased exports and cost reduction measures.

Moreover, the strengthened US currency vis-a-vis the ringgit augured well for the group, especially for the export products, it added.