Chalco profits down 13.5% on aluminum price drop

Aluminum Corp of China Ltd (Chalco)<601600><2600> saw its 2007 net profit fell 13.5% to RMB 10.24 billion from RMB 11.84 billion a year earlier due to a drop in the prices of electrolytic aluminum and alumina, the company said in its annual report released on Monday.

Its sales turnover for the year amounted to RMB 76.18 billion, representing an annual increment of 17.51% as production of electrolytic aluminum expanded by 45.08% to 2.8 million tons through the acquisition of two Chinese aluminum producers last year.

The annual average selling price of electrolytic aluminum dropped 3.14% to RMB 16,914 a ton, while that of alumina was RMB 2,912 a ton, down 19.51% from 2006.

Chalco, China's largest producer of the metal, expects to produce 10.20 million tons of alumina and 3.62 million tons of electrolytic aluminum this year.