Despite lower prices for its aluminum products,
For the period ended June 30, Alcan posted net income attributable to common shareholders of US$70 million (US22 per diluted share) on sales and operating revenue of US$3.2 billion. This compares with a profit of US$72 million (22 per share) on US$3.2 billion in revenue during the corresponding period of 2001.
Profits in the recent quarter were hampered by US$70 million worth of foreign-currency translation charges plus US$8 million in non-recurring charges.
Shipments of aluminum in all forms during the period totalled 1.1 million tonnes, up 1% from a year earlier.
Alcan notes that aluminum prices were significantly lower between the two periods, but the company still managed to achieve improved operating results through both higher sales volumes and ongoing cost-cutting measures.
Alcan realized US$1,536 per tonne for its ingot products, down 6% from the year-earlier period, but up 3% from the first quarter of 2002. For its rolled products, the company realized US$2,311 per tonne during the second quarter, or 4% lower than the year-ago quarter and 3% above the previous quarter.
Over the first six months of the year, Alcan recorded a profit of US$155 million (48 per share) on revenue of US$6.1 billion, a decline from the US$205-million profit made on revenue of US$6.4 billion in the first half of 2001.
Overall aluminum production between the two 6-month periods remained steady at 2.1 million tonnes.
Under new rules introduced by the Financial Accounting Standards Board in the U.S., Alcan can no longer amortize its goodwill. As a result, the major recorded a US$748-million impairment charge to its opening retained earnings at Jan. 1, 2002. The writedown is related to Alcan’s merger with Switzerland’s Algroup in 2000.
With the goodwill amortization eliminated, earnings were goosed US5 per share in the second quarter and US6 per share in the previous 3-month period.
Alcan’s second-quarter performance was better than that of its chief competitor,
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