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Friday, 14 July 2017

Norsk Hydro: Sapa (joint venture) - Announcement of results for the second quarter 2017

Norsk Hydro    

Published: 07:00 CEST 14-07-2017 /GlobeNewswire /Source: Norsk Hydro / : NHY /ISIN: NO0005052605

Norsk Hydro: Sapa (joint venture) - Announcement of results for the second quarter 2017

Underlying EBIT for Sapa in the second quarter increased compared to the previous quarter, in line with general seasonality in the industry but also related to improved performance.

Sapa improved its underlying EBIT in the second quarter of 2017 compared to the same period last year, ending the quarter at NOK 914 million. The quarterly result is the best in Sapa's history. The increase was driven by a higher share of value-add business and internal improvements for all business areas.

Underlying EBIT for the first half of 2017 improved compared to the same period in 2016, influenced by the same factors as discussed above.

Net interest-bearing debt increased to NOK 3.1 billion at the end of the quarter, mainly reflecting dividend payments of NOK 3 billion to the owners.

Key Figures - Sapa (100%) 

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Q2 2017

NOK million, except sales volumes

 

 

 

 

 

 

Volume (kmt)

349

366

340

310

355

359

Total operating revenues

13 905

14 071

13 140

12 210

14 323

15 309

Underlying EBITDA

901

1 132

812

653

1 100

1 252

Underlying EBIT

571

804

487

335

778

914

Underlying net income

365

540

315

334

562

658

Reported EBIT

655

920

497

350

856

781

 

Demand for extruded products in Europe and North America increased compared to the previous quarter by around 9 percent and 3 percent respectively, driven by seasonality.

In North America, total demand for extruded products increased by around 3 percent compared to the same quarter last year. The increase was driven by stronger automotive demand and higher building and construction activities whereas demand from commercial transportation was declining.

In Europe, total demand for extruded products increased by around 2 percent compared to the same quarter last year.
Europe experienced stronger automotive and transportation demand, as well as an improved building and construction market.

Key figures per business area

Extrusion Europe

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Q2 2017

NOK million, except sales volumes

      

Volume (kmt)

148

157

142

130

154

155

Operating revenues

5 366

5 468

4 932

4 565

5 553

5 999

Underlying EBITDA

349

425

276

221

390

416

Underlying EBIT

223

304

154

97

274

292

       

Extrusion North America

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Q2 2017

NOK million, except sales volumes

      

Volume (kmt)

150

155

149

131

150

151

Operating revenues

5 265

5 234

5 183

4 617

5 514

5 753

Underlying EBITDA

414

362

361

199

437

466

Underlying EBIT

315

263

260

90

331

353

       

Building Systems

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Q2 2017

NOK million, except sales volumes

      

Volume (kmt)

19

21

18

19

20

21

Operating revenues

1 869

1 939

1 680

1 685

1 830

2 044

Underlying EBITDA

110

210

104

109

155

219

Underlying EBIT

75

166

67

74

119

183

       

Precision Tubing

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Q2 2017

NOK million, except sales volumes

      

Volume (kmt)

37

40

37

35

36

38

Operating revenues

1 620

1 664

1 549

1 543

1 651

1 734

Underlying EBITDA

144

169

135

161

180

193

Underlying EBIT

86

112

76

103

123

136

       

Other and eliminations

Q1 2016

Q2 2016

Q3 2016

Q4 2016

Q1 2017

Q2 2017

Underlying EBITDA

-116

-33

-64

-37

-63

-43

Underlying EBIT

-128

-41

-69

-28

-69

-49

 

Investor contact
Contact Stian Hasle
Cellular +47 97736022
E-mail
Stian.Hasle@hydro.com

Certain statements included in this announcement contain forward-looking information, including, without limitation, information relating to (a) forecasts, projections and estimates, (b) statements of Hydro management concerning plans, objectives and strategies, such as planned expansions, investments, divestments, curtailments or other projects, (c) targeted production volumes and costs, capacities or rates, start-up costs, cost reductions and profit objectives, (d) various expectations about future developments in Hydro's markets, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, and (i) qualified statements such as "expected", "scheduled", "targeted", "planned", "proposed", "intended" or similar.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to: our continued ability to reposition and restructure our upstream and downstream businesses; changes in availability and cost of energy and raw materials; global supply and demand for aluminium and aluminium products; world economic growth, including rates of inflation and industrial production; changes in the relative value of currencies and the value of commodity contracts; trends in Hydro's key markets and competition; and legislative, regulatory and political factors.

No assurance can be given that such expectations will prove to have been correct.  Hydro disclaims any obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.





This announcement is distributed by Nasdaq Corporate Solutions (One Liberty Plaza, 165 Broadway, New York, NY 10006. Tel: +1 212 401 8700. www.nasdaqomx.com) on behalf of NASDAQ OMX Corporate Solutions clients. Source: Norsk Hydro, Drammensveien 260, Oslo 0240, Norway
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