• Underlying EBIT NOK 1,077 million
• Higher sales volumes driven by seasonality
• Increased realized alumina and aluminium prices
• Higher production and prices in Energy
• Continued challenging markets

"We continue to see positive effects of our ambitious improvement efforts across the company, further strengthening our industry position. We will strengthen our efforts, particularly in the strategically important Bauxite & Alumina business area, where operational performance is a top priority," Hydro's President and CEO Svein Richard Brandtzæg said.

"Overall, we experience increased macro uncertainty. We expect a balanced primary aluminium market in 2013, based on expected demand growth outside China of 2-4 percent, announced curtailments and new production coming on stream," Brandtzæg said.

Bauxite & Alumina's underlying EBIT was stable compared to the previous quarter. Positive effects relating to higher LME-linked alumina prices were offset by higher energy costs.

Primary Metal delivered improved underlying EBIT compared to the fourth quarter due to higher realized aluminium prices, increased premiums and seasonally higher sales volumes. Hydro's share of underlying results from Qatalum also improved during the quarter.

Higher volumes and higher margins for remelt operations together with improved results from sourcing and trading activities had a positive impact on underlying EBIT for Metal Markets during the quarter.

Rolled Products' underlying EBIT increased compared to the fourth quarter, influenced by seasonally higher shipments and higher margins. Operating costs were stable.

Underlying EBIT for Energy increased in the quarter due to seasonally higher production and prices.

Other and eliminations underlying EBIT included positive effects relating to the elimination of unrealized gains and losses on internal inventories compared with significant negative charges in the previous quarter.

Operating cash flow was NOK 0.5 billion for the first quarter. Net cash used for investment activities amounted to NOK 0.5 billion. Hydro's net cash position amounted to around NOK 0.4 billion at the end of the first quarter, also influenced by cash used in discontinued operations and capitalized financial lease obligations.

Reported earnings before financial items and tax amounted to NOK 705 million in the first quarter. In addition to the factors discussed above, reported EBIT included net unrealized derivative losses and positive metal effects amounting to NOK 294 million in total, and rationalization and closure cost of NOK 78 million. In the previous quarter, reported EBIT amounted to NOK 704 million, including net unrealized derivative gains and positive metal effects of NOK 555 million, and other items amounting to negative NOK 23 million.

Income from continuing operations amounted to NOK 254 million in the first quarter including a net foreign exchange loss of NOK 115 million. In the previous quarter, income from continuing operations amounted to NOK 334 million including a net foreign exchange loss of NOK 102 million.

Income from discontinued operations amounted to NOK 9 million in the first quarter including rationalization and closure costs of NOK 40 million. In the fourth quarter, loss from discontinued operations amounted to NOK 247 million including rationalization and closure costs of NOK 174 million.

As of January 1, 2013 Hydro has implemented a new accounting standard for employee benefits (IAS19R) with retrospective application resulting in changes to the prior periods in this report.