Bloomberg News

Rusal Drops to Four-Month Low as RenCap Sees Margin Decline

May 10, 2012

United Co. Rusal, the world’s largest aluminum producer, fell to a four-month low as Renaissance Capital forecast a 5 percent decline in margins from the previous quarter.

Rusal lost 1.3 percent to 196.98 rubles by the end of trading in Moscow, the lowest level since Jan. 10.

“The rising oil price and resulting strong ruble will squeeze already thin earnings before interest, tax, depreciation and amortization margins, which we expect to fall from 14 percent to 9 percent quarter-over-quarter,” Andrew Jones, an analyst at Renaissance Capital, said in an e-mailed report today.

To contact the reporter on this story: Ksenia Galouchko in New York at

To contact the editor responsible for this story: Gavin Serkin at

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