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Norsk Hydro: Sapa (joint venture) - Announcement of results for the second quarter 2016

OSLO, Norway, July 15, 2016 (GLOBE NEWSWIRE) -- Underlying EBIT for Sapa increased compared to the previous quarter, mainly due to seasonally higher market demand and stronger margins.

Underlying EBIT for Sapa increased significantly compared to the same quarter of the previous year. Earnings improved across all business areas, driven by positive effects from improvement programs, increased share of value-add products and positive market developments. The second quarter last year was negatively influenced by sharply falling metal premiums in North America.

Underlying EBIT for the first half of 2016 improved compared with the same period in 2015, influenced by the same factors discussed above.

Key Figures - Sapa (100%) Second quarter 2016 First quarter 2016 Second quarter 2015 First half 2016 First half 2015 Year 2015
NOK million, except sales volumes
Operating revenues 14 071 13 905 14 484 27 976 28 535 55 252
Underlying EBITDA 1 132 901 799 2 033 1 504 2 729
Underlying EBIT 804 571 483 1 375 875 1 407
Sales volumes (kmt) 366 349 358 715 711 1 363
Reported EBIT 920 655 65 1 574 266 528

Demand for extruded products in Europe and North America increased compared to the previous quarter by 4.5 percent and 3 percent, respectively, driven by seasonality.

Compared to the same period last year, market demand increased by 2.5 percent in North America and 1.5 percent in Europe. In North America, building and construction activity and automotive demand contributed positively. In Europe there were positive developments in automotive and transportation and a mixed picture in building and construction.

Going forward, a continued moderate market growth is expected in Europe, while certain market segments in North America show indications of flattening out. In both North America and Europe, aluminium substitution in the automotive industry is contributing positively. The second quarter is a seasonally strong quarter, and demand traditionally decreases in the third quarter.

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

Press contact
Contact Halvor Molland
Cellular +47 92979797
E-mail Halvor.Molland@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.

HUG#2028793

Source:Norsk Hydro