August 29, 2011 / 12:37 AM / 7 years ago

RUSAL Q2 net profit down 70 pct

HONG KONG, Aug 29 (Reuters) - Russia’s United Company RUSAL Plc , the world’s top aluminium producer, reported on Monday its second quarter net profit dropped 70 percent from a year ago due to cost inflation stemming from a stronger local currency and non-cash items.

RUSAL , which competes with U.S. aluminium maker Alcoa Inc , posted a net profit of $339 million in the three months ended June, compared with an average forecast of $470 million from 8 analysts polled by Reuters

This compared with profit of $1.12 billion for the same period a year earlier, it said in a statement.

A firmer rouble, the Russian currency, has been pressuring Rusal’s margins and bottom line as its aluminium exports are typically denominated in U.S. dollars.

The net included non-cash items, such the revaluation of its share in the profit from Russian miner Norilsk Nickel and the re-evaluation of its energy supply contracts.

Shares of RUSAL have lost 33 percent in Hong Kong so far this year against a 15 percent drop in the benchmark Hang Seng Index . (Reporting by Alison Leung; Editing by Jonathan Hopfner)

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