Nippon Amazon Aluminium Posts First Loss in 6 Years

Nippon Amazon Aluminium, which is Japanese investment company for Amazon Aluminium project in Brazil, announced on Tuesday the firm posted 859 million yen of net loss for the year ending December 2010, which was the first loss in 6 years due to lower dividend and valuation loss for Alunorte share, compared with 11 million yen of profit in 2009.

The dividend decreased to 69 million yen in 2010 from 306 million yen in 2009. The operating loss was 286 million yen compared with 95 million yen of loss in 2009. The recurring loss was 858 million yen compared with 19 million yen of profit. The firm decided to pass the dividend as 2009.

Brazilian aluminium smelting project company of Albras posted R$ 75.6 million of operating profit in 2010 compared with R$ 140.5 million of loss in 2009 thanks to higher operation rate and higher market price. However, the firm posted R$ 37.9 million of profit before tax due to valuation loss and foreign exchange loss compared with R$ 139.5 million of profit.

Brazilian alumina refinery project company of Alunorte posted R$ 166.8 million of profit before tax in 2010, which was 28% lower than 2009 level, thanks to higher alumina price.

Norsk Hydro of Norway completed purchase of equity in Amazon Aluminium project from Vale of Brazil by end of February. Norsk Hydro has 51% share in Albras and 91% share in Alunorte. Amazon Aluminium is now joint project between Japan and Norway.