Russia's Rusal reports 21% drop in net profit
Russia's Rusal aluminium giant Monday reported a 20.5-percent drop in first-half net profit due to higher debt-servicing costs and smaller returns from its partial holding Norilsk Nickel.
Rusal chief executive Oleg Deripaska also predicted sector volatility for the mid-term while noting continued strong demand for aluminium "in both established and fast-growing emerging markets".
The firm reported a net profit of $1.09 billion -- down from the $1.37 billion reported in the first six months of 2010.
It also noted an aluminium output increase of one percent and said it had reduced its debt under various restructuring agreements by $1.67 billion.
"While the volatility across the sector and in the global economy is likely to persist in the mid-term, UC Rusal's strong fundamentals and leading position in the metals and mining industry will allow the Company to continue delivering value and growth for all stakeholders," Deripaska said in a company statement.
Rusal currently holds an estimated 25-percent stake in the world's largest nickel producer Norilsk Nickel.
© 2011 AFP