Russian aluminum giant Rusal posts US$55 million net loss for last year
AFPHONG KONG -- Russian aluminum giant Rusal on Monday reported a net loss of US$55 million for 2012, as the firm said it would cut production following lackluster demand for the metal and falling prices.
March 5, 2013, 12:35 am TWN
The world's largest aluminum producer fell into the red for the fiscal year ending December 31, 2012, compared with a net profit of US$237 million in 2011, the Moscow-based firm said. Revenue fell 11.4 percent to US$10.89 billion.
“2012 remained particularly challenging for the aluminum industry,” its chief executive Oleg Deripaska said in a filing to the Hong Kong stock exchange, where the firm is listed.
He said although the global aluminum consumption rose by six percent in 2012 to 47.4 million tons, prices fell 15.7 percent year-on-year due to “negative investor sentiment.”
“The unfavorable market conditions and lower LME (London Metal Exchange) price has inevitably impacted the operating results of the company,” he added.
Rusal said it expects to cut approximately 300,000 tons of aluminum production capacity at its “less efficient aluminum smelters” by the end of 2013 to improve efficiency.