ALBA reported strong financial results for the third quarter, helping boost the turnover for the first nine months of the year.
Sales for Q3 were $593 million (BD223.2 million) compared with $488 million (BD 183.3 million) for the same period in 2013. Sales for the first three quarters totalled $1.6 billion against $1.5 billion for the corresponding period in 2013 on the back of higher LME prices and physical premiums, the company said.
Third-quarter net income was $78 million compared with $13 million for Q3 2013.
“The large increase in the third quarter was due to strong operational performance on the back of higher metal prices,” the company explained.
The company posted a net income of $165 million for the first nine months of 2014, versus $176 million, which the company attributed to lower unrealised derivative gains in 2014.
Highlights of Q3 were that Alba was able to increase its sales volume by 2.3 per cent year on year while production was up by 1.5 per cent YoY on the back of sustained operational performance. Sales of value-added products represented 67 per cent of total shipments versus 65 per cent in Q3 2013 and physical premiums were on an upward trend (+32 per cent YoY) thanks to a solid physical demand.
Commenting on the Q3 results, Alba’s chief executive Tim Murray said: “Alba’s sound financial performance in the third quarter of 2014 was driven by strong operational performance and gains from the marketing organisation.”
The chairman of the company’s board, Sheikh Daij bin Salman Al Khalifa, added: “Once again, Alba was able to deliver exceptional results. As we head into the end of the year, the company is targeting to exceed the record production achieved in 2013.”
Alba and the Alba Labour Union announced a new family health insurance package for all employees, effective January 1, 2015.
The new package will be optional for employees willing to insure their families and share part of the cost of insurance. Commenting on the scheme, Murray said: “Alba owes its success to the employees and thanks them for their contribution towards the company’s success. Employees’ well-being and safety has always been our number one priority, and we are pleased to announce the new benefits. The management expresses thanks to the Alba board for appreciating the employees and the Alba Labour Union for their continuous support.”
The company also revised the summer heat allowance, basing it on working conditions, and announced an upgrade to the existing merit system to include safety in the performance criteria.
Expressing gratitude, Alba Labour Union’s chairman, Ali Al Binali, remarked: “We are truly thankful to the Alba board and executive management for announcing family health insurance for all employees as well as the new benefits. We thank them for their continuous support and appreciation of Alba employees and will work hard to strengthen Alba’s position as a leading aluminium producer in the world.”
Aba pledged to provide superior support services to its customers across global markets during a technical workshop it conducted at Maxion Wheels, Turkey. A team of the customer technical support (CTS) department, comprising senior manager Abdulla Habib Ahmed Ali and product specialist Anand Santhanam, visited Maxion Wheels, Turkey to highlight the products and processes used by Alba for the foundry alloy product supplied to the client.
The team focused on best practices to maximise results from Alba products and superior casting performance at the customers’ own location. The workshop – attended by the core team from Maxion including officials from operations, quality, engineering and purchasing – was followed by detailed technical discussions of mutual interest and a tour of the facility of Maxion Wheels.
“Alba constantly endeavours to expand its presence in the global markets,” said Abdulla. “Apart from satisfying the stringent demands expected by our quality-conscious customers, we continuously conduct workshops and other initiatives, thus strengthening our relationship with the customers and boosting the company’s productivity.”
Maxion Wheels, an aluminium wheels producer, is one of the premium customers in Alba’s value-added products portfolio.
Alba was the gold winner in the Environmental Best Practice category of the prestigious International Green Apple Awards 2014 for its project on “Fluoride Emission Reduction”.
Alba’s chief operations officer Isa Al Ansari and manager for training and recruitment Rawdha Al Aradi were presented with the trophy and certificate at a presentation ceremony in The Houses of Parliament, UK. This win brings international recognition to Alba’s commitment towards creating and maintaining a sustainable environment, thus fostering a healthy work environment for its employees.
Established in 1994, the Green Apple Environment Awards is hailed as one of the world’s foremost environment award campaigns, and recognises, rewards and promotes environmental best practices around the world.
Murray was a key speaker at the seventh annual HRD Congress held in Bahrain under the theme “Evolving HR function as a Business Partner”. He presented a case study which highlighted the company’s investment in human assets, the strides it has made in safety initiatives and the manpower role in productivity.
Murray said: “At Alba, people are our most valuable resource. We believe it is important to invest in educating and training the workforce, which will improve employee capabilities and organisational competences. It is also a key part of our succession planning, which is necessary to develop future generations of leaders at Alba.
“Safety is the other principal factor that governs Alba’s day-to-day operations. We believe that a strong safety programme and the successful financial performance of the company are closely linked. We constantly endeavour to achieve a zero accident work environment through various safety campaigns and awareness sessions, which has resulted in significant improvement in the overall safety performance of the company, as well as its productivity.”
Alba was the silver sponsor of the event.