Shares in aluminium producer, Alumina (AWC) fell on Thursday after the company said it cut its underlying earnings for financial year 2007 to $409 million from previously estimated $490 million, due to lower aluminium prices and higher Australian dollar.
The 17% cut is also attributed to costs of Hurricane Dean and higher production costs.
The initial profit forecast of $490 million was announced assuming an average LME aluminium price of US$1.24 per pound. Underlying earnings were reduced by approximately $30 million after an average price of US$1.21.
Similarly both the exchange rate and the refining costs were higher than previously estimated, resulting in the cut.
The Victorian-based company has a joint venture interest in bauxite mining, alumina refining, alumina based chemicals and aluminium smelting via its 40 per cent interest in Alcoa World Alumina & Chemicals (AWAC).
US based Alcoa own the remaining 60% of AWAC and is the manager.
Alumina Limited is one of Australia's top 40 companies and is included in the benchmark S&P/ASX 200 index.
On 31 January 2008, Alumina will announce its financial result for the year to 31 December 2007.
Shares in AWC fell 2.7% to $6.14 at 11.40AM AEST.
