Orkla ASA : Sapa (joint venture) - Announcement of results for the first quarter 2014
Sapa is a 50/50 joint venture between Norsk Hydro ASA's Extruded products business area and Orkla ASA's Sapa and is the global leader in extruded aluminum solutions. The joint venture was established on 1 September 2013.
Underlying EBIT for Sapa improved in the first quarter 2014 compared to the first quarter 2013.
Sapa's restructuring agenda is progressing according to plan and reported EBIT is affected by related restructuring charges.
Key Figures - Sapa (100%)
| NOK million | Proforma Q1 2013 | Q1 2014 |
| Sales volume (1000 tonnes) | 346 | 359 |
| Revenues | 10 367 | 11 346 |
| Underlying EBITDA | 304 | 440 |
| Underlying EBIT | 16 | 155 |
| Reported EBIT | -148 | -3 |
Orkla's share of Sapa's net income for the quarter was
NOK -51 million.
Market Comments:
Demand for extruded products in North America improved compared to fourth quarter 2013, driven by seasonality. Compared to the same quarter of the previous year, demand grew 5 percent, mainly supported by growth in the automotive and building market segments. Extruded demand in South America show signs of weakening.
In Europe, extruded products demand increased by 4 percent from the fourth quarter of last year, mainly due to seasonality. Demand improved 2 percent compared to the first quarter of 2013, supported by higher automotive demand, somewhat offset by weaker transport, renewable energy and building market segments, in particular in Southern Europe.
Global demand for precision tubing continued to be driven by increased demand from the automotive market sector.
Orkla ASA
Oslo, 30 April 2014
Contacts:
Rune Helland, SVP Investor Relations
Tel.: +47 97 71 32 50
Ane Bryn-Haugland, Investor Relations
Tel.: +47 98 06 81 26