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 [phone] 
 
   E-mail [e-mail] 
 
   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 01:00 ET (05:00 GMT)

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