Interim Financial Results for the Six Months Ended 30 June 2008
23.10.2008
Amsterdam/Zurich, 23 October 2008: Vimetco NV (LSE: VICO), the global producer of primary and processed aluminium products, today announces interim financial results for the six months ended 30 June 2008.
Financial Highlights:
Key Points:
Post Period:
Christian Wüst, Chief Executive Officer, commented:
"We have made good progress in the first half of the year delivering a significant expansion programme in China. Since then we have made two important further steps towards full vertical integration, acquiring a bauxite mine in Sierra Leone and a coal mine in China.
In recent weeks there has been a sharp deterioration in the aluminium price which has co-incided with continued pressure from high raw materials and energy prices. While we are confident that the aluminium price will recover in the course of 2009, we are currently taking action to mitigate the impact of these factors, including cutting production and delaying capital expenditures on new projects.
We are convinced that when the aluminium price starts to recover, Vimetco will be well-positioned as a highly efficient aluminium producer in its markets."
Financial Highlights:
| H1 2008 |
H1 2007 |
Change | |
| Primary aluminium production (tonnes) | 356,000 |
294,000 | +21% |
| Processed aluminium production (tonnes) |
50,000 | 19,500 | +156% |
| Primary aluminium sales (tonnes) |
285,000 |
276,000 |
+3% |
| Processed aluminium sales (tonnes) | 49,000 |
20,000 | +145% |
| Revenue (USD millions) | 949 |
482 | +97% |
| EBITDA (USD millions) | 209 |
141 | +48% |
| Net profit (USD millions) | 127 |
89 | +43% |
| Earnings per share (USD) | 0.452 |
0.436 | +4% |
Key Points:
- Increased revenue benefitting from full period contribution from Chinese operations (9 days in H1 2007).
- Capacity increase of 20% to 683,000 tpa due to full contribution from Linfeng.
- Expansion programme in China and investment of USD 550 million (for the full year 2008).
- Continuing to deliver vertical integration strategy both up and down-stream (cold rolling mill upgrade in Romania).
Post Period:
- Further step in implementing full vertical integration by acquiring bauxite mine in Sierra Leone.
- Moving towards self-sufficiency in China with joint venture for coal mine assets.
Christian Wüst, Chief Executive Officer, commented:
"We have made good progress in the first half of the year delivering a significant expansion programme in China. Since then we have made two important further steps towards full vertical integration, acquiring a bauxite mine in Sierra Leone and a coal mine in China.
In recent weeks there has been a sharp deterioration in the aluminium price which has co-incided with continued pressure from high raw materials and energy prices. While we are confident that the aluminium price will recover in the course of 2009, we are currently taking action to mitigate the impact of these factors, including cutting production and delaying capital expenditures on new projects.
We are convinced that when the aluminium price starts to recover, Vimetco will be well-positioned as a highly efficient aluminium producer in its markets."
