Alumina Limited (AWC) said the outlook for 2010 is much more positive for the market with demand expected increase overall by 10% on 2009, but still below the levels of 2008. The company said it is seeing a sluggish recovery in the US, Japan and Europe, but strong growth in China and India.
CEO, John Bevan, said underlying earnings for Alumina for the year remain in line with guidance provided in February this year.
"Earnings will continue to be impacted by changes in aluminium price and exchange rates, as explained at the full year results,” Mr Bevan said.
Mr Bevan said the high levels of the Australian dollar and the Brazilian Real compared with the historical average exchange rate have negatively impacts on underlying earnings, as have power interruptions.
"Taking all of this into consideration, an important indicator of the health of the AWAC business is its cash generating capacity,” he said.
"In 2010, Alumina Limited has received US$58 million in dividends in the first quarter alone.”
Mr Bevan said the company's investment in AWAC would benefit from improving market conditions and lower levels of future capital requirements.
As at 1016 AEST, Alumina shares were down 4.5c to $1.54.
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