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.

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

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.

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