Alumina Second-Half Profit Falls 18% on Lower Prices

Feb. 3 (Bloomberg) -- Alumina Ltd., partner in the world’s biggest producer of the material used to make aluminum, had an 18 percent decline in second-half profit because of lower prices and higher costs. Net income fell to A$124.4 ($78 million) for the six months ended Dec. 31, from A$152 million a year earlier. Second-half profit was calculated from full-year figures provided in the Melbourne-based company filings today and was confirmed by Alumina. Aluminum prices are near five-year lows as orders drop from automakers, builders and appliance manufacturers. Alcoa Inc., Alumina’s joint venture partner, reported last month its first quarterly net loss in six years. “The second half saw a rapid fall in metals prices as demand declined in response to the global economic contraction,” John Bevan, Alumina’s Chief Executive Officer, said in a statement to the Australian stock exchange. Demand for the metal, used to make beverage cans and aircraft parts, may decline 2 percent this year, following last year’s 3 percent drop, the company said. Alumina shares rose 0.9 percent to A$1.09 at 10:13 a.m. Sydney time on the Australian stock exchange. Alumina is unlikely to be profitable this year at current metal prices, Credit Suisse Group AG said on Feb. 2.