Stock Analysis – Alumina (AWC)
Alumina (AWC) is a leading Australian company that invests worldwide in bauxite mining, alumina refining and selected aluminium smelting operations.
In Australian news, AWC has reported a 1H10 net profit of US$44.2 million, swinging from a loss of US$27.9 million a year earlier.
Underlying earnings totalled US$22.2 million, which missed consensus estimates of a $36 million underlying profit.
AWC attributed the profit result to higher sales volumes and prices, in addition to good cost control.
AWC upgraded its alumina demand forecast for 2010, but expects some volatility in pricing due to China managing its supply and demand position.
AWC also declared an interim dividend of 2 US cents per share while its Australian share price fell 0.6% to settle at $1.63 a share yesterday.