Norsk Hydro: Sapa (joint venture) - Announcement of results for the fourth quarter 2014
05 February 2015 - 5:04PM
Underlying EBIT for Sapa declined compared to the previous quarter,
mainly due to lower seasonal demand.
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.
Key Figures - Sapa (50%) |
Fourth quarter 2014 |
Third quarter 2014 |
Fourth quarter 2013 |
Year 2014 |
NOK million, except sales volumes |
|
|
|
|
Revenue |
5 945 |
5 802 |
5 066 |
23 192 |
Underlying EBITDA |
171 |
246 |
(22) |
958 |
Underlying EBIT |
(27) |
100 |
(170) |
326 |
Underlying Net Income (loss) |
(22) |
55 |
(140) |
199 |
Sales volumes (kmt) |
161 |
175 |
157 |
699 |
Earnings before financial items and tax (EBIT) |
(339) |
99 |
(393) |
(158) |
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
Investor contact Contact Pål Kildemo Cellular +47 97096711
E-mail Pal.Kildemo@hydro.com
Press contact Contact Halvor Molland Cellular +47 92979797
E-mail Halvor.Molland@hydro.com
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.
HUG#1891882
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