COMALCO SAYS LOWER COSTS HELPED RETURN TO PROFITS

  Comalco Ltd &lt;CMAC.S> said its return
  to profit reflected reduced costs, improved primary aluminium
  prices and its withdrawal from a Japanese smelter venture.
      It said the earlier reported 57.1 mln dlr profit for the
  year ended December 31 against a 69.13 mln dlr loss in 1985 was
  also aided by lower interest rates on U.S. Dollar debt and
  greater sales of bauxite and aluminium.
      Comalco said it expected to pay at least a four cents per
  share final, dividend delayed until July 1 to take advantage of
  proposed dividend imputation laws.
      This would make five cents for the year against a first and
  final of one cent in 1985.
      Comalco said the aluminium industry continued to suffer
  from low prices and excess capacity, though the weak Australian
  dollar had helped earnings.
      Withdrawal from the &lt;Showa Aluminium Industries KK> joint
  venture had been recapitalised in expansion by the &lt;New Zealand
  Aluminium Smelters Ltd> project with Japan's &lt;Sumitomo
  Aluminium Smelting Co Ltd>, permitting repayments and increases
  in liquid funds totalling 165 mln dlrs, it said.
      As previously reported Comalco's &lt;Commonwealth Aluminium
  Corp> unit has conditionally agreed to sell its smelter at
  Goldendale, Washington, and port facilities at Portland, Oregon
  to &lt;Columbia Aluminium Corp>.
      Comalco said it had made a 27.3 mln dlr extraordinary
  provision for Goldendale losses and closure costs but that if
  the sales agreement were completed it would reduce the
  provision made in the 1986 accounts.
      The other items in the total extraordinary loss of 140.5
  mln dlrs were a 102.9 mln write-off of unrealised exchange
  losses and 10.3 mln for an increase in future tax provision.
  

