Sales Revenue of Aluminum Companies Fall Sharply on Sluggish Aluminum Prices 2012-Shanghai Metals Market

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Sales Revenue of Aluminum Companies Fall Sharply on Sluggish Aluminum Prices 2012

SMM Insight 04:07:44PM Feb 05, 2013 Source:SMM

SHANGHAI, Feb. 5 (SMM) – Domestic aluminum listed companies recently issued earnings report for 2012, showing that their sales revenue dropped significantly.

SMM attributes largely to the following four reasons: a considerable decline in aluminum prices, rising electricity prices, increasing bauxite prices, as well as severe industry competition.

Earnings Report of Aluminum Listed Companies 2012
 

Company
Estimated Net Profit Attributable to Shareholders of Listed Company 2012 (RMB 10,000)
Earnings Per Share (RMB) 2012
Net Profit Attributable to Shareholders of Listed Company 2011 (RMB 10,000)
Earnings Per Share (RMB) 2011
Reasons for Earnings Changes
Chinalco (601600)
Considerable Loss   
Considerable Loss   
23797.400
0.020
With aluminum markets remaining sluggish, aluminum prices dropped around 7% YoY, while domestic bauxite grade dropped. Indonesia's restrictions on bauxite exports caused the company's alumina output to fall by around 1.7 million mt, and alumina cost rose 4% YoY.
Jiaozuo Wanfang Aluminum Manufacturing (000612)
0~ -5000
0~0.104
38128.380
0.794
There are three reasons behind losses. First, aluminum prices remained low, leading the company's selling prices to fall YoY. Second, electricity costs increased YoY. Third, investment income from Zhaogu (Xinxiang) Energy Company of Jiaozuo Coal Mining Group slipped YoY.
 
Henan Zhongfu Industry (600595)
Down 70%~90%
~
20125.340
 0.130
Aluminum prices hovered at lows on slowing economic growth, and operating rates for coal were inadequate owing to external factors. Hence, the company’s earnings dropped appreciably from a year ago.  
 
Yunnan Aluminium (000807)
Down 80%~90%
about 0.006~0.013
   9672.188
0.063
First, aluminum demand growth fell since early 2012 due to the European debt crisis and slowing domestic economic growth, so sales revenue dropped sharply from the previous year. Second, since China raised electricity prices in late 2011, the company's electricity cost rose considerably in 2012.  
 
Shenhuo Coal & Electricity (000933)
Down 80%~87%
around 0.100
115058.000  
 0.604
Coal and aluminum industry competition became severe in 2012 with economic growth slowing, and coal demand especially dropped sharply since July 2012. The average selling prices of the company's coal products saw a sharp YoY decline. Meanwhile, domestic aluminum markets slipped into a severe supply surplus and caused aluminum to remain soft. The company's aluminum business suffered big losses.
 

Sales Revenue of Aluminum Companies Fall Sharply on Sluggish Aluminum Prices 2012

SMM Insight 04:07:44PM Feb 05, 2013 Source:SMM

SHANGHAI, Feb. 5 (SMM) – Domestic aluminum listed companies recently issued earnings report for 2012, showing that their sales revenue dropped significantly.

SMM attributes largely to the following four reasons: a considerable decline in aluminum prices, rising electricity prices, increasing bauxite prices, as well as severe industry competition.

Earnings Report of Aluminum Listed Companies 2012
 

Company
Estimated Net Profit Attributable to Shareholders of Listed Company 2012 (RMB 10,000)
Earnings Per Share (RMB) 2012
Net Profit Attributable to Shareholders of Listed Company 2011 (RMB 10,000)
Earnings Per Share (RMB) 2011
Reasons for Earnings Changes
Chinalco (601600)
Considerable Loss   
Considerable Loss   
23797.400
0.020
With aluminum markets remaining sluggish, aluminum prices dropped around 7% YoY, while domestic bauxite grade dropped. Indonesia's restrictions on bauxite exports caused the company's alumina output to fall by around 1.7 million mt, and alumina cost rose 4% YoY.
Jiaozuo Wanfang Aluminum Manufacturing (000612)
0~ -5000
0~0.104
38128.380
0.794
There are three reasons behind losses. First, aluminum prices remained low, leading the company's selling prices to fall YoY. Second, electricity costs increased YoY. Third, investment income from Zhaogu (Xinxiang) Energy Company of Jiaozuo Coal Mining Group slipped YoY.
 
Henan Zhongfu Industry (600595)
Down 70%~90%
~
20125.340
 0.130
Aluminum prices hovered at lows on slowing economic growth, and operating rates for coal were inadequate owing to external factors. Hence, the company’s earnings dropped appreciably from a year ago.  
 
Yunnan Aluminium (000807)
Down 80%~90%
about 0.006~0.013
   9672.188
0.063
First, aluminum demand growth fell since early 2012 due to the European debt crisis and slowing domestic economic growth, so sales revenue dropped sharply from the previous year. Second, since China raised electricity prices in late 2011, the company's electricity cost rose considerably in 2012.  
 
Shenhuo Coal & Electricity (000933)
Down 80%~87%
around 0.100
115058.000  
 0.604
Coal and aluminum industry competition became severe in 2012 with economic growth slowing, and coal demand especially dropped sharply since July 2012. The average selling prices of the company's coal products saw a sharp YoY decline. Meanwhile, domestic aluminum markets slipped into a severe supply surplus and caused aluminum to remain soft. The company's aluminum business suffered big losses.