Aluminum conglomerate Rusal has reported a glowing first quarter profit after five quarters of losses. The Moscow based company said it reached positive territory again as prices picked up after a protracted dip.
The world's top aluminum producer, Rusal, said Wednesday it had bounced back into profit in the second quarter as improved metal prices on global markets and cost-cutting began impacting the balance sheet.
The Hong-Kong-listed firm reported a net profit of $116 million (88.1 million euros) for the three months ending June, after a Q1 loss of $325 million. It was the first time the company logged bottom-line earnings since Q1 2013.
"The market environment is improving," Board Chairman Matthias Warning said in a statement, with CEO Oleg Deripaska adding that the price of aluminum had surged by 24 percent since afour-and-a-half-year low
Total quarterly revenue grew by 6.5 percent quarter-on-quarter to $2.26 billion. Rusal says recovery in advanced economies in Europe and the US as well as higher output in China will boost global demand for aluminum by 6.5 percent this year to 55 million tons.
The originally Russian company was founded in 2000. In 2007 it vaulted into the global numberone position following its merger with domestic competitor Sual and the alumina assets of Anglo-Swiss Glencore.
Rusal operates in 19 countries over five continents and employs over 72,000 people worldwide.
hg/bw (AFP, Reuters)