Pechiney unwraps increased quarterly loss

PARIS - The French aluminium and packaging group Pechiney reported on Friday a net loss of 76 million euros (88.0 million dollars) in the third quarter from a loss of 14 million euros in the same period of last year.
The latest loss was after exceptional charges of 117 million euros owing to costs of 33 million euros to challenge a takeover bid by Alcan of Canada, and the writing down of asset values to the extent of 84 million euros.

The bid by Alcan to acquire all of Pechiney is under way.

Operating profit fell to 58 million euros from 95 million euros. In the first nine months operating profit fell to 196 million euros from 336 million euros.

In the third quarter sales fell by 17.2% to 2.5 billion euros from 3.02 billion euros and in the first nine months sales were down by 13.3% to 8.00 billion euros from 9.23 billion euros.

Company chairman Jean-Pierre Rodier said in a statement that he expected margins to steady in the fourth quarter because results from the primary aluminium business had improved.

This was partly a result of a rise of aluminium prices on the London Metals Exchange.