Falling Profits For Aluminium Manufacturers

Despite rising sales, the profits of Alco have fallen by 3.9 percent in the second quarter.

The world’s second largest aluminium manufacturer Alco announced that it had a 3.9 percent fall in profits during the second quarter, after the American stock exchanges closed on Monday.

Net profits fell to 715 million dollars compared to 744 million in the same period in 2006, whilst sales rose in the same period by 3.5 percent to 8.07 billion dollars.

The Alco company, which its headquarters in New York, blamed the smaller profits on the expenses of closing two smelters at the start of the year, in the moment when the company was competing for the hostile takeover of their rival Alcan. The price of aluminium has risen by 5.5 percent in the period from April to June.

Alco is the first company whose shares are listed in New York’s Dow Jones Industrial Average, who have reported on their business results in the second quarter.