SHANGHAI, Oct. 11 (SMM) - Shandong Loften Aluminum Foil (Shandong Loften) released its report for the third quarter on October 10. The company posted nearly RMB 6.33 million of net profits during the first three quarters of 2012. Shandong Loften suffered approximately RMB 3.47 million in net losses in the first two quarters, but gained RMB 9.8 million in 3Q, according to the report.
The company attributed optimization of product structure and increased sales of aluminum foil to its growing profits against overall weak aluminum industry.
So far this year, aluminum foil market has been battered by poor orders for curtain-wall plate, ordinary aluminum plate, air-conditioner foil and double-zero foil from sluggish downstream demand. SMM indicates that lowering processing fees has become the last resort for many producers of aluminum plate, sheet, strip and foil amid the sluggish market.
Shandong Loften’s main businesses are household foil and medical foil, which accounted for 34.91% and 14.34% of all its products in the first half this year. The change of profitability in its main businesses is unknown as the company didn’t announce its operating margins for 3Q. SMM notes the big drop of account receivable is the main reason behind Shandong Loften’s profit growth in 3Q as its account receivable has dropped by roughly RMB 68.66 million to nearly RMB 167million in 3Q.
The company is currently working on its private placement for the first phase of the cold rolling part of its 450,000 mt/yr aluminum plate, sheet and strip project.