Underlying EBIT for Sapa increased compared to the same quarter previous year due to stronger North American demand, improved margins, improvement programs and restructuring activities in Europe. Global automotive demand has supported the precision tubing results. Results for the fourth quarter 2013 included charges related to impairment of inventories and accounts receivables.

The restructuring program initiated by the company in 2013, targeting annual synergies of around NOK 1 billion by the end of 2016, is ahead of plan, with about half of the target reflected in the underlying results for the full year 2014.

Reported EBIT for fourth quarter was in addition to the factors mentioned above impacted by items related to restructuring activities undertaken to deliver on the improvement and restructuring agenda.

In addition to items related to the improvement and restructuring agenda, reported EBIT includes approximately NOK 0.5 billion* in impairment of fixed assets in China.

Market
Demand for extruded products in North America increased 9 percent compared to the same quarter of the previous year as a result of increased building and construction activity and strong automotive demand. Compared to the previous quarter, demand decreased by 10 percent, due to seasonality.

In Europe, extruded products demand was overall stable compared to the same quarter previous year, where a weaker building and construction market was offset by most other segments. Compared with the previous quarter, demand decreased 6 percent, due to seasonality.

Demand for extruded products is expected to seasonally improve going into the first quarter of 2015.

*Hydro’s share is 50 percent of this figure

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.

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