Aluminum Corp of China (Chalco), the country's largest producer of the metal, said higher prices of raw materials, energy and fuel knocked 92 per cent off net profit in the three months to September compared with the previous year, to 182.89 million yuan (HK$207 million).
The global economic slowdown squeezed demand, resulting in a significant fall in prices of the group's major aluminium products, Chalco said in a statement yesterday.
Receivables, inventories and financial expenses soared as part of a set of poor results compiled according to the mainland's accounting standards.
Earnings per share stood at 1.4 fen in the quarter, while revenue shrank 7.9 per cent to 19.08 billion yuan.
In the first nine months, net profit slumped 72.1 per cent to 2.58 billion yuan, or 19.1 fen per share, as revenue fell 7.4 per cent l to 58.69 billion yuan.
The company recently announced a plan to reduce production capacity by 18 per cent on weakened demand and waning selling prices. In the third quarter, production output of alumina grew 5.8 per cent to 2.54 million tonnes, with alumina chemicals up 7.7 per cent to 280,000 tonnes. Primarily aluminium products soared 25 per cent to 900,000 tonnes.
Against the backdrop of the credit crunch, finance expenses skyrocketed 472.44 per cent to 367.34 million yuan in the third quarter and surged 270 per cent to 652.55 million yuan in the first nine months.