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Manufacturing is Back and So is Aluminum Demand
Edited by : AL CIRCLE
1 min read
Not a lot of companies can say what Alumina Limited (ADR) (NYSE:AWC) said about its full-year profit for the year ended Dec 31 ’11: Its profit tripled.
Alumina is an Australia-based company and through its 40% ownership of Alcoa World Alumina and Chemicals (The Company’s partner, Alcoa, owns the remaining 60% of AWAC) and the AWC subsidiaries and refineries in the U.S., Brazil, Suriname, Jamaica, Spain, and Australia, the Company’s output climbed to a new record.
That had a direct reflection on its net income for the year which was $127 million, or $0.052 a share vs. $35 million or $0.014 a year earlier.
In a Feb 15 earnings call CEO John Bevan said, “The Company plans to produce 15.9 million tons of alumina this year after a record production of 15.7 million tons in 2011. The 2012 target will be adjusted to meet demand.”
The trouble with aluminum is that prices tend to rise and fall dramatically in short leaps of time and other aluminum producers, both big and small, tend to follow the trend and cut back production when prices drop and raise production when demand increases and prices.
Alumina is an Australia-based company and through its 40% ownership of Alcoa World Alumina and Chemicals (The Company’s partner, Alcoa, owns the remaining 60% of AWAC) and the AWC subsidiaries and refineries in the U.S., Brazil, Suriname, Jamaica, Spain, and Australia, the Company’s output climbed to a new record.
That had a direct reflection on its net income for the year which was $127 million, or $0.052 a share vs. $35 million or $0.014 a year earlier.
In a Feb 15 earnings call CEO John Bevan said, “The Company plans to produce 15.9 million tons of alumina this year after a record production of 15.7 million tons in 2011. The 2012 target will be adjusted to meet demand.”
The trouble with aluminum is that prices tend to rise and fall dramatically in short leaps of time and other aluminum producers, both big and small, tend to follow the trend and cut back production when prices drop and raise production when demand increases and prices.
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