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Norsk Hydro: Sapa (joint venture)- Announcement of results for the second quarter 2014

Underlying EBIT for Sapa improved compared to the first quarter, partly influenced by seasonally stronger sales volumes.

Sapa’s restructuring agenda is progressing according to plan and reported EBIT is affected by related restructuring charges.

Key Figures - Sapa (50%) Second quarter 2014 First quarter 2014
NOK million, except sales volumes    
Revenue 5 772 5 673
Underlying EBITDA 321 220
Underlying EBIT 175 78
Underlying Net Income (loss) 131 35
Sales volumes (kmt) 184 180
Earnings before financial items and tax (EBIT) 84 (2)


Demand for extruded products in North America improved by 7 percent compared to the first quarter, mainly due to seasonality. Compared to the same quarter of the previous year, demand grew 5 percent, supported by automotive and building and construction. Extruded demand in South America continued to show signs of weakening.

In Europe, extruded products demand increased by 6 percent from the first quarter, primarily driven by seasonality. Demand improved 2 percent compared to the second quarter of 2013, supported by automotive, but somewhat offset by weak building markets in Southern-Europe.

Global demand for precision tubing continued to be driven by increased demand from the automotive sector.


Certain statements included within this announcement contain forward-looking information, including, without limitation, those relating to (a) forecasts, projections and estimates, (b) statements of management's plans, objectives and strategies for Hydro, such as planned expansions, investments 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, as well as (i) statements preceded by "expected", "scheduled", "targeted", "planned", "proposed", "intended" or similar statements.

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 aluminium business; 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 as a result of new information, future events or otherwise.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

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