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• NOK 772 million LAJIR
• Higher seasonal sales volume
• Increased energy production
• Demand for primary aluminum outside China remains greater than production
• Investments in new automotive line and new recycling capacity

"We see signs of improvement in the aluminum industry as demand for aluminum outside China continues to exceed production. Based on the increased use of aluminum in automobiles and the growing demand for recycled metal, we are investing in our aluminum business. rolled in Germany in order to expand our automotive and recycling capacity. At the same time, our ongoing operational improvement efforts continue in full force in all areas, ”said Hydro Executive President Svein Richard Brandtzæg.

Hydro will invest 130 million euros in a new automotive production line at its laminated products plant in Grevenbroich in Germany. The new line, which should be completed in the second half of 2016, will expand the capacity of aluminum sheets for bodies from 50 thousand to 200 thousand metric tons. In the first quarter, Hydro also decided to invest 45 million euros in new recycling capacity in Germany, in line with its ambition to double the company's total recycling capacity by 2020.

THE LAJIR of the Bauxite & amp; Alumina increased compared to the fourth quarter of 2013, which included payment related to the ICMS tax. Alumina production at the Alunorte refinery was stable, although fuel costs have increased as a result of the introduction of the ICMS tax on fuels since February 1 of this year.

"Alumina production recovered and stabilized after the problems faced by the refinery last year. Many indicators point in the right direction now, both at Alunorte and at the Paragominas bauxite mine, and we are confident that the experience gained will make the most robust operations, ”said Brandtzæg.

EBITDA in the Primary Metal business area declined this quarter, mainly due to the insurance received in the previous quarter. The increase in sales volume and premium products partly offset the higher costs of alumina and energy and, in addition, the lower prices realized on the London Stock Exchange.

Not taking into account the negative effects of exchange and inventory, the EARNINGS of the Metal Markets business area improved, especially due to better results from buying and selling activities.

The Rolled Products business area posted higher EBITDA in the first quarter as a result of more seasonal sales and lower maintenance costs, even though & nbsp; partially affected by smaller margins.

The EARNINGS of the Energy business area increased, especially due to the increase in energy production.

Compared to the fourth quarter of 2013, Sapa's LAJIR improved as a result of higher seasonal sales volumes.

Operating cash flow had a negative result of 0.7 billion in the first quarter, impacted by the seasonal increase in working capital and payment of taxes related to a tax action in Norway. The net cash flow used for investment activities amounted to NOK 0.6 billion. Hydro's net debt position was approximately NOK 0.6 billion at the end of the first quarter.

Reported earnings before interest and tax amounted to NOK 822 million in the first quarter. The reported LAJIR includes unrealized net gains on NOK 170 million derivatives in total. Reported operating profit also includes impairment charges of NOK 33 million related to divestments at Hydro's foundry plant in Hannover and costs of NOK 86 million (Hydro's share) at Sapa, primarily related to rationalization activities.

Income from continuing operations totaled NOK 462 million in the first quarter, including net foreign exchange gains of NOK 193 million. In the previous quarter, the loss from continuing operations totaled NOK 758 million, including the loss of net foreign exchange gains of NOK 688 million.

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