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12 AUGUST 2020 AL CIRCLE

COVID-19 impact: ALRO Group’s sales declined by 9.6% YoY in H1 2020

EDITED BY : HEENA IQBAL 2MINS READ

ALRO, one of the largest vertically integrated aluminium producers in Europe, measured by production capacity, announced its consolidated financial results for the six months ended 30 June 2020. 

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The Group’s consolidated sales stood at RON 1,360,942 thousand in H1 2020, lower by 9.6% year-on-year due to the unfavourable market conditions and due to the COVID-19 pandemic crisis. Net profit stood at RON 254 million in H1 2020, from RON 80 million in H1 2019.

ALRO’s sales declined to RON 1,222,845 thousand in H1 2020.

ALRO Group’s sales of primary products in volume terms increased to 65,883 tonnes in H1 2020 from 65,155 tonnes in H1 2019 due to wire rod sales higher by 2,600 tonnes. Sales of processed products in volume terms slightly decreased to 53,605 tonnes in H1 2020 due to lower coils as the most affected industries by the COVID-19 pandemic were automotive and aerospace. However, the extruded products increased by 18.7% in H1 2020 compared to the similar period of 2019 mainly due to deliveries of profiles to the solar panels market.

“The earnings for H1 2020 were affected due to a combination of factors, lower LME prices on international markets and impact of COVID-19 over the demand levels, partially mitigated by the efficiency of our operations and previously implemented cost-savings measures. Moreover, recovery signs are already visible in the market, the LME quotations on the international markets show in H2 2020 an upward trend and steady levels above 1,650 USD/tonne. Through these developments and by implementing even stricter controls and savings measures to improve the cash-flow, increasing our competitiveness through human capital, integration of state-of-the-art technologies and by providing high-quality and value-added products, we are confident that we can maintain the long lasting relationships with our customers while attracting and building new ones”, said Marian NĂSTASE, Chairman of the Board of Directors, ALRO.

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“In the context of the new requirements of the European Green Deal, we will focus on the products mix for increasing the high and very high value-added products, continue to invest in energy efficiency projects and to direct capital towards long-term environmentally sustainable investments having innovative technology with the aim to remain a viable choice for all investors that are interested in green investment opportunities “, added Marian NĂSTASE.

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EDITED BY : HEENA IQBAL 2MINS READ

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