Alumina Fiscal Year Net Down 15% At A$436.4 Million

MELBOURNE -(Dow Jones)- Alumina Ltd. (AWC.AU) Thursday posted a full year net profit of A$436.4 million, down 15% on the A$511.1 million it posted the previous year.

The Melbourne-based company said the drop in profit was due to higher operating costs and the impact of a stronger Australian dollar.

Alumina said global demand for aluminum is forecast to grow strongly at about 10% during 2008, although the market is projected to have a small surplus of less than 1% of global consumption.

The miner said its joint venture with Alcoa Inc. (AA) is forecast to produce 14.8 million metric tons of alumina in 2008.

The alumina industry is expected to continue to experience significant increases in energy prices, shipping freight rates and caustic soda prices and Alumina said the joint venture’s operating costs are forecast to increase by about US$24 a ton in 2008.

Alumina posted a final dividend of 12 cents per share, in line with last year.