By InvestAdvocate
Lagos (INVESTADVOCATE) – First Aluminum Nigeria Plc operating in the Industrial Goods Sector of the Nigerian Stock Exchange (NSE) has reported a 48 percent (48%) decline in its Gross Profit for the Period Ended December 31 2011.
This was contained in the result of the Company obtained by www.investadvocateng.com in Lagos Nigeria.
To record the 48% decline, Gross Profit of the Company was N629.128 million in year 2010 end compared to N323.764 million in year 2011 end; indicating a decline of 48%.
Also, Loss Before Tax was a negative N278.223 million in the review period of year 2011 compared to a negative of N298.070 million in year 2010 end.
Similarly, Loss After Tax was also on the negative as the Company recorded N325.044 million in year 2011 end compared to N334.586 million in the corresponding period of year 2010.
Turnover of First Aluminum was N8.79 billon in 2011 end compared to N8.76 billion recorded in year 2010 end; showing a slight increase of 0.34% in the review period.
Ben Elfrink, Managing Director (MD) of the Company at it’s “Facts Behind the Figures†presentation Wednesday to stakeholders at the Nigeria’s Exchange in Lagos said the decline in the Company’s Profit was as a result of Electricity and duty tariffs, wage cost, Gas supply and the current Exchange Rates.
“The increase in importation rate into Nigeria had an adverse effect on the Company’s operations, Nigerians should buy locally made goods†Elfrink said.
He affirmed that 85% of all imported goods to Nigeria are substandard. “Patronising Nigerian made products is better than buying imported products that are most of the time substandard. Buying Nigerian made products has an extra value in developing the Nigerian economy and creating employment for Nigerians†he said.
On his part, Oscar Onyema, the Chief Executive Officer (CEO) of the Nigeria’s Exchange in his address commended the Board and Management of First Aluminum for coming forward to provide the Market with information about their organisation, “a rather important activity as the Capital Market is information driven†he said.
According to Onyema, NSE has laid Corporate Governance on the front burner as one of the vital elements for ensuring a sound investment environment and maximising shareholder returns. “The NSE will continue to consistently enforce its rules on Corporate Governance in a firm and fair manner in order to build a strong investment climate for Market Participants. We cannot afford to do otherwise if we are to become the gateway to African Markets†the NSE CEO said.
He affirmed that the Industrial Goods Sector where First Aluminum was listed on November 5, 1992, has 27 Companies. 26 of these are quoted on the Main Board and one on ASeM. The Year-to-Date (YTD) performance of the sector is +8.54%.
“Comparing this with global Industrial Goods performance shows that the Sector can do better. FTSE 350 Industrial Goods &Services has YTD of 13.23%; S&P Industrial Index, 12.15%; MSCI Egypt Industrial Index, 38.53% and FTSE/JSE African Industrial Index, 25.11%†Onyema said.
