Chalco H1 Returns to Profit, Lags Forecast

HONG KONG Aug 23 (Reuters) - Aluminum Corp of China Ltd (2600.HK), the country's top aluminium maker, reversed year-earlier losses to post a first-half net profit, but a domestic supply glut dragged second-quarter earnings into the red.

The company, also known as Chalco (601600.SS), recorded a net profit of 530.6 million yuan ($78.14 million) for the first six months of 2010, against a 3.52 billion yuan loss a year earlier, it said in statement on Monday.

The result lagged an average forecast of 683 million yuan from three analysts polled by Reuters.

Stripping first-quarter profit of 627.25 million yuan gives a net loss of 96.7 million yuan for the April-June period, versus a loss of 1.63 billion yuan a year earlier, based on Chinese accounting standards. Analysts had been expecting the company to break even or post a small profit for the quarter.

China's aluminium market has returned to oversupply following the restart of idled facilities and new production exceeding demand growth, dragging down prices and returning net exports to pre-financial crisis levels, analysts said.