• Adjusted EBIT of NOK 772 million
• Seasonally higher sales volume
• Increased electricity generation
• Demand for primary aluminum outside of China continues to outpace production
• Investments in new production line for body panels and new recycling capacity

“We see signs of improvement in the aluminum industry as the demand for aluminum outside of China continues to outpace production. Due to the increasing use of aluminum in vehicles and the increasing demand for recycled metal, we are investing in our rolling business in Germany and increasing the capacity for body panels and recycling. At the same time, our efforts to improve operations with undiminished strength continue in all areas, ”says CEO Svein Richard Brandtzæg.
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Hydro will transfer 130 million euros into a new automotive production line at its rolled products plant Invest in Grevenbroich. Completion of the new line is expected in the second half of 2016, increasing the annual capacity for body panels from 50,000 tons to 200,000 tons. Hydro also decided in the first quarter to spend 45 million euros on additional recycling capacity in Germany, which is in line with the goal of doubling the company's total recycling capacity by 2020.
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Adjusted EBIT for the Bauxite & amp; Alumina improved compared to the fourth quarter of 2013, when claims related to ICMS taxes were paid. Alumina production at the Alunorte alumina refinery was stable, but heating oil costs increased, mainly due to the introduction of the ICMS tax on heating oil from February 1st.
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"Alumina manufacturing has become a problem after the Alunorte refinery recovered and stabilized last year. Many indicators are now pointing in the right direction, both for Alunorte and in the Paragominas bauxite mine. We are confident that the experience gained will lead to more robust operations, ”says Brandtzæg.
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Adjusted EBIT for the Primary Metal business decreased in the quarter, mainly due to insurance benefits being in the fourth Quarter had been received. Higher product premiums and increased sales were partially offset by higher alumina and electricity costs and lower LME prices.
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Excluding negative inventory and currency effects, adjusted EBIT of the activities of improved Metal Markets, primarily due to better sourcing and trading results.
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Rolled Products' adjusted EBIT increased in the first quarter thanks to seasonally higher sales volumes and lower maintenance costs, which was partially offset by lower margins .
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Adjusted EBIT for the Energy business area rose primarily due to higher electricity generation.
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Adjusted EBIT for Sapa improved compared to the fourth quarter thanks to higher seasonal factors Sales volume.
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Cash flow from operating activities was negatively impacted in the first quarter at 0.7 billion through a seasonal increase in equity and a tax payment in connection with an ongoing tax process in Norway. Cash flow for investing activities was NOK 0.6 billion. Hydro's net debt was approximately NOK 0.6 billion at the end of the first quarter.
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Reported earnings before financial items and taxes were NOK 822 million in the first quarter. The reported EBIT includes unrealized gains from derivatives totaling NOK 170 million. The reported EBIT also includes a write-down of NOK 33 million in connection with the agreed sale of the Hydro foundry in Hanover and costs of NOK 86 million (share of Hydro) at Sapa, which are primarily linked to rationalization measures.
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Income from continuing operations was NOK 462 million in the first quarter, including a net currency gain of NOK 193 million. In the previous quarter, income from continuing operations was a loss of NOK 758 million, including a net currency loss of NOK 688 million.

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