News

Alcan announced its second-highest quarterly operating earnings ever in the lead up to the divestment of its packaging business to Rio Tinto.

According to the company's results, which could be its last financial statement before the sale completes, Q2 profits increased to £296.9m on sales of £3.3bn, up 8.5% compared with the same period last year.

However, figures published yesterday (31 July) showed that packaging profits for the quarter had decreased 6% on Q2 2006's £62.04m.

But if "other specified items", such as currency fluctuations and contributions from divested businesses are excluded, the packaging division made a profit of £81m.

Chief executive Dick Evans was quick to praise the packaging division and said the business would be valued on the quality of its assets, people, market position, technology and future outlook by potential investors.

"The work that has been done by the packaging management and employees has been outstanding in the last three years," he added.

It is suspected that Rio Tinto will break the packaging business into parts for sale upon completion of the acquisition.