OSLO, Norway, Feb. 5, 2015 (GLOBE NEWSWIRE) -- Underlying EBIT for Sapa declined compared to the previous quarter, mainly due to lower seasonal demand.
Underlying EBIT for Sapa increased compared to the same quarter previous year due to stronger North American demand, improved margins, improvement programs and restructuring activities in Europe. Global automotive demand has supported the precision tubing results. Results for the fourth quarter 2013 included charges related to impairment of inventories and accounts receivables.
The restructuring program initiated by the company in 2013, targeting annual synergies of around NOK 1 billion by the end of 2016, is ahead of plan, with about half of the target reflected in the underlying results for the full year 2014.
Reported EBIT for fourth quarter was in addition to the factors mentioned above impacted by items related to restructuring activities undertaken to deliver on the improvement and restructuring agenda.
In addition to items related to the improvement and restructuring agenda, reported EBIT includes approximately NOK 0.5 billion* in impairment of fixed assets in China.
|Key Figures - Sapa (50%)||Fourth quarter 2014||Third quarter 2014||Fourth quarter 2013||Year 2014|
|NOK million, except sales volumes|
|Revenue||5 945||5 802||5 066||23 192|
|Underlying Net Income (loss)||(22)||55||(140)||199|
|Sales volumes (kmt)||161||175||157||699|
|Earnings before financial items and tax (EBIT)||(339)||99||(393)||(158)|
Demand for extruded products in North America increased 9 percent compared to the same quarter of the previous year as a result of increased building and construction activity and strong automotive demand. Compared to the previous quarter, demand decreased by 10 percent, due to seasonality.
In Europe, extruded products demand was overall stable compared to the same quarter previous year, where a weaker building and construction market was offset by most other segments. Compared with the previous quarter, demand decreased 6 percent, due to seasonality.
Demand for extruded products is expected to seasonally improve going into the first quarter of 2015.
*Hydro's share is 50 percent of this figure
Contact Pål Kildemo
Cellular +47 97096711
Contact Halvor Molland
Cellular +47 92979797
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