• Basic EBIT of NOK 557 million
• Lower aluminum and alumina prices
• Solid production performance
• Good results for Energy, record production level
• & nbsp; Increase in aluminum sales volumes due to seasonal effects, decrease in alumina sales volumes
• & nbsp; Outlook of 3% growth in aluminum demand for 2012 outside from China
"Still weak demand and low aluminum prices have negatively influenced the results for the first quarter. We will continue our restructuring efforts, reduce costs and take vigorous measures to maintain the course is firm, "says President and Chief Executive Svein Richard Brandtzæg." Depending on the macroeconomic development in Europe, we expect global aluminum demand outside China to grow by approximately three percent in 2012, "he says.
"I'm satisfied with our strong production performance, especially in strategically important assets at Qatalum and Alunorte, creating a solid basis for progress when the market improves. The efficient and powerful improvement programs implemented in the foundry units where we have full participation are evolving as planned, also contributing to a solid platform in the future, ”says Brandtzæg.
Bauxita's basic EBIT & amp; Alumina fell compared to the fourth quarter, mainly due to lower realized alumina prices and lower sales volumes. However, the production of bauxite and alumina was stable.
Lower realized aluminum prices and low premiums had a substantially negative impact on basic EBIT for Primary Metal in the quarter, partially offset by higher sales volumes and lower raw material costs. Production volumes fell, mainly due to the discontinuation of a production line at the foundry unit in Kurri Kurri in Australia.
The underlying results of Hydro's midstream operations were higher compared to fourth quarter, which suffered hard from the negative exchange effects. Basic EBIT, excluding foreign exchange effects, increased in the first quarter, above all due to the higher volumes of the remelting operations.
Basic EBIT for Hydro, Extruded Products and Downstream businesses Laminates, were better than in the fourth quarter, which was influenced by seasonal declines and the weak development of the European market. Demand remained weak for the extrusion businesses in Europe and, in particular, for Construction Systems.
The Energy business area had solid underlying results for the quarter, in addition to record levels of energy production.
Operating cash flow totaled NOK 0.6 billion for the quarter. Net cash used for investing activities totaled NOK 0.9 billion, while Hydro's net cash position was NOK 1.5 billion at the end of the first quarter.
Profits declared before financial items and taxes totaled NOK 665 million in the first quarter, including net unrealized derivative profits of NOK 307 million, negative metal effects of NOK 60 million and rationalization and closing costs of NOK 132 million. Values referring to other items of a special or infrequent nature were not relevant for this first quarter.
Hydro had a net revenue of NOK 585 million for the first quarter, including foreign exchange gains of NOK 410 million . In the fourth quarter, Hydro had a net loss of NOK 749 million, including currency losses of NOK 28 million.
More in English: & nbsp;
|Key financial information|
|NOK million, except per share data|| First quarter
|Fourth quarter 2011||% change prior quarter|| First
|% change prior year quarter|| Year
|Earnings before financial items and tax (EBIT)||665||(362)||& gt; 100%||5,855||(89)%||9,827|
|Items excluded from underlying EBIT||(108)||1,494||& gt; (100)%||(4,408)||98%||(3,694)|
|Bauxite & amp; Alumina||(144)||159||& gt; (100)%||155||& gt; (100)%||887|
|Metal Markets||87||(39)||& gt; (100)%||143||(39)%||441|
|Extruded Products||14||(90)||& gt; 100%||105||(86)%||151|
|Other and eliminations||(137)||92||& gt; (100)%||(344)||60%||(389)|
|Net income (loss)||585||(749)||& gt; 100%||5,154||(89)%||6,749|
|Underlying net income (loss)||256||876||(71)%||834||(69)%||3,947|
|Earnings per share||0.25||(0.36)||& gt; 100%||2.89||(92)%||3.41|
|Underlying earnings per share||0.13||0.42||(70)%||0.45||(72)%||1.89|
|Financial data: & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp; & nbsp;|
|Adjusted net interest-bearing debt||(19,231)||(19,895)||3%||(20,490)||6%||(19,895)|
|Key Operational information|
|Alumina production (kmt)||1,464||1,490||(2)%||773||89%||5,264|
|Primary aluminum production (kmt)||514||539||(5)%||415||24%||1,982|
|Realized aluminum price LME (USD / mt)||2,155||2,439||(12)%||2,358||(9)%||2,480|
|Realized aluminum price LME (NOK / mt)||12.404||13,834||(10)%||13.607||(9)%||13,884|
|Realized NOK / USD exchange rate||5.75||5.67||1%||5.77||-||5.60|
|Metal Markets sales volumes to external market (kmt)||591||564||5%||467||27%||2,091|
|Rolled Products sales volumes to external market (kmt)||227||215||6%||245||(7)%||929|
|Extruded Products sales volumes to external market (kmt)||133||121||10%||136||(2)%||536|
|Power production (GWh)||3,190||2,706||18%||2.308||38%||9,582|