Comalco earned S20M in first six months

Press, 31 August 1977, Page 36

Comalco earned S20M in first six months

NZPA Sydney Better conditions in export markets for aluminium ingot and bauxite, helped produce I a rise in net profit from |$B.5M to $20.0M for CoImalco, Ltd, in the six (months to June 30. j An interim dividend of 5c ia share (10 per cent) is payable on November 3. The payment of 8c a share for the previous year was made up of an interim of 2.75 c) and a final of 5.25 c a share. The Comalco result,■ coupled with the sharp gain! in Hamersley’s iron ore earnings, means that Con-1 zinc Riotinto of Australia,! Ltd, will report a sizable increase in its half-yearly profit, despite Bougainville( Copper’s lower profits, and ’ the loss by Mary Kathleen ‘ Uranium. The key factors behind Comalco’s spectacular profit increase were exports of more aluminium ingot and bauxite at higher prices.

Group sales rose 32.5 per cent to a record SIS7.SM despite a lack of growth in .the Australian market for j primary ingot, and decline in the New Zealand market.

I Backing-up the morel profitable exports was a rise! .from $84,000 to $3,262,000 in: (Comalco’s equity in the, profits of associated companies. The main con- ! tributors appear to have ! been Queensland Alumina, i Ltd, Dampier salt and fabricating and extrusion busiiness in New Zealand.

' There were also gains I from Comalco’s 50 per cent | share of the Bluff smelter, iand from its 20 per cent I share of the Eurallumina (alumina refinery, in Sardinia.

The domestic market demand for extruded products declined in the second quarter because of subdued activity in the building industry.

The fabricating division’s profits in the second half are likely to be affected by a decline in the demand for building materials and transport equipment, which has become evident in recent months.

The directors remain cautious about the prospects for the rest of 1977, having regard to the uncertainties in the economy.