HONG KONG (Reuters) - Aluminum Corp of China Ltd (2600.HK)(601600.SS), the world’s No.3 alumina producer, said on Sunday its third quarter net profit dived 92 percent, dented by high production costs and sliding aluminum prices amid weakening demand in a slowing world economy.
Also known as Chalco, the country’s top alumina and aluminum maker reported a net profit of 182.9 million yuan ($26.7 million) in the quarter ended September, down from a restated profit of 2.29 billion yuan a year ago, under Chinese accounting standards.
The result lagged the company’s forecast of a more than 50 percent drop in third-quarter net profit.
Threats of another round of electricity tariff hikes in China and an oversupply of aluminum, which is widely used in industries including construction and automobiles, had clouded the earnings outlook for the company, analysts said.
The stock lost nearly half of its value in the third quarter and underperformed an 18 percent drop in the Hang Seng Index .HSI. It plunged 14.5 percent to close at HK$2.48 on Friday against a 8.3 percent drop in the benchmark index.
Reporting by Alison Leung; Editing by Anshuman Daga