Norsk Hydro AS Norsk Hydro: Sapa (joint venture) - Announcement Of Results For The Second Quarter 2017
TIDMNHY
Underlying EBIT for Sapa in the second quarter increased compared to the
previous quarter, in line with general seasonality in the industry but
also related to improved performance.
Sapa improved its underlying EBIT in the second quarter of 2017 compared
to the same period last year, ending the quarter at NOK 914 million. The
quarterly result is the best in Sapa's history. The increase was driven
by a higher share of value-add business and internal improvements for
all business areas.
Underlying EBIT for the first half of 2017 improved compared to the same
period in 2016, influenced by the same factors as discussed above.
Net interest-bearing debt increased to NOK 3.1 billion at the end of the
quarter, mainly reflecting dividend payments of NOK 3 billion to the
owners.
Key Figures - Sapa
(100%) Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
NOK million, except
sales volumes
Volume (kmt) 349 366 340 310 355 359
Total operating revenues 13 905 14 071 13 140 12 210 14 323 15 309
Underlying EBITDA 901 1 132 812 653 1 100 1 252
Underlying EBIT 571 804 487 335 778 914
Underlying net income 365 540 315 334 562 658
Reported EBIT 655 920 497 350 856 781
Demand for extruded products in Europe and North America increased
compared to the previous quarter by around 9 percent and 3 percent
respectively, driven by seasonality.
In North America, total demand for extruded products increased by around
3 percent compared to the same quarter last year. The increase was
driven by stronger automotive demand and higher building and
construction activities whereas demand from commercial transportation
was declining.
In Europe, total demand for extruded products increased by around 2
percent compared to the same quarter last year. Europe experienced
stronger automotive and transportation demand, as well as an improved
building and construction market.
Key figures per business area
Extrusion Europe Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
NOK million, except
sales volumes
Volume (kmt) 148 157 142 130 154 155
Operating revenues 5 366 5 468 4 932 4 565 5 553 5 999
Underlying EBITDA 349 425 276 221 390 416
Underlying EBIT 223 304 154 97 274 292
Extrusion North America Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
NOK million, except
sales volumes
Volume (kmt) 150 155 149 131 150 151
Operating revenues 5 265 5 234 5 183 4 617 5 514 5 753
Underlying EBITDA 414 362 361 199 437 466
Underlying EBIT 315 263 260 90 331 353
Building Systems Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
NOK million, except
sales volumes
Volume (kmt) 19 21 18 19 20 21
Operating revenues 1 869 1 939 1 680 1 685 1 830 2 044
Underlying EBITDA 110 210 104 109 155 219
Underlying EBIT 75 166 67 74 119 183
Precision Tubing Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
NOK million, except
sales volumes
Volume (kmt) 37 40 37 35 36 38
Operating revenues 1 620 1 664 1 549 1 543 1 651 1 734
Underlying EBITDA 144 169 135 161 180 193
Underlying EBIT 86 112 76 103 123 136
Other and eliminations Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017
Underlying EBITDA -116 -33 -64 -37 -63 -43
Underlying EBIT -128 -41 -69 -28 -69 -49
Investor contact
Contact Stian Hasle
Cellular +47 97736022
E-mail Stian.Hasle@hydro.com
Certain statements included in this announcement contain forward-looking
information, including, without limitation, information relating to (a)
forecasts, projections and estimates, (b) statements of Hydro management
concerning plans, objectives and strategies, such as planned expansions,
investments, divestments, curtailments 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, and (i) qualified statements such as
"expected", "scheduled", "targeted", "planned", "proposed", "intended"
or similar.
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 businesses; 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 because of new information, future
events or otherwise.
This information is subject to the disclosure requirements pursuant to
section 5-12 of the Norwegian Securities Trading Act.
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the information
contained therein.
Source: Norsk Hydro via Globenewswire
http://www.hydro.com/en/?WT.mc_id=Pressrelease
(END) Dow Jones Newswires
July 14, 2017 01:15 ET (05:15 GMT)