Alcoa well ahead in first quarter

Press, 21 April 1984, Page 22

Alcoa well ahead in first quarter

NZPA-AAP Melbourne The aluminium smelting and refining group, Alcoa of Australia, Ltd, started 1984 well with a first quarter net profit of sAustl4.7 million, compared with $6.5 million for the same period last year. However the result is still well below the $22.7 million of the fourth quarter of 1983. First quarter sales volumes for both alumina and aluminium increased while cost cutting and improved efficiencies at all locations helped significantly in maintaining the company’s competitive posi-

tion, Alcoa’s directors said on Thursday. Sales revenue for the period was $272.7 million, an increase of $B3 million from the first quarter of 1983, reflecting a significant increase in alumina sales volume. Alcoa is 51 per centowned by the Aluminium Company of America, with other major shareholders including Western Mining Corporation, Ltd, with 20 per cent, BH South, Ltd, 13 per cent, and North Broken Hill Holdings, Ltd, with 12 per cent. A recent reversal of last

year’s upward movement in the world price of aluminium was of concern, they said. In addition, the world market for alumina remained highly competitive due to over-supplies. Since the end of 1983, the upward appreciation of the exchange rate against the U.S. dollar also had affected profit, the directors said. Return on total assets on an annual basis for the first quarter of 1984 was 2.5 per cent. Return on shareholders’ funds on an annual basis was 5.1 per cent, slightly down on the 5.2 per cent earned during 1983.