Orkla ASA: Sapa (joint venture) - Announcement of results for the first quarter 2015
Sapa is a 50/50 joint venture between Norsk Hydro ASA's former Extruded products business area and Orkla ASA's Sapa (ex. Gränges) and is the global leader in extruded aluminum solutions. The joint venture was established on 1 September 2013.
Underlying EBIT for Sapa improved compared to the same quarter of the previous year driven by strong North-American demand, the effects of improvement programs and restructuring activities, and positive currency development. Results for precision tubing operations improved, supported by growth in global automotive demand. Sapa's restructuring agenda continues to be ahead of plan, with limited restructuring charges affecting reported EBIT for the quarter.
Key Figures - Sapa (100%):
Orkla's share of Sapa's net income for the quarter was NOK 45 million compare to negative NOK 51 mill. for the same quarter of the previous year.
Market Comments:
Demand for extruded products in North America increased by 11 percent compared to the same quarter last year, driven by strong automotive demand and increased building and construction activity.
In Europe, demand was stable compared to the same quarter previous year Demand for extruded products is expected to be seasonally higher in the second quarter. Compared to the second quarter of last year, demand in Europe is expected to remain stable while the strong development in North America is expected to continue.
Orkla ASA
Oslo, 29 April 2015
Ref.:
Orkla ASA
SVP Investor Relations
Rune Helland
Tel.: +47 977 13 250
Email: rune.helland@orkla.no
Underlying EBIT for Sapa improved compared to the same quarter of the previous year driven by strong North-American demand, the effects of improvement programs and restructuring activities, and positive currency development. Results for precision tubing operations improved, supported by growth in global automotive demand. Sapa's restructuring agenda continues to be ahead of plan, with limited restructuring charges affecting reported EBIT for the quarter.
Key Figures - Sapa (100%):
| NOK million | Q1 2015 | Q1 2014 |
| Sales volume (1000 tonnes) | 353 | 359 |
| Revenues | 14 134 | 11 346 |
| Underlying EBITDA | 705 | 440 |
| Underlying EBIT | 392 | 155 |
| Reported EBIT | 201 | -3 |
Orkla's share of Sapa's net income for the quarter was NOK 45 million compare to negative NOK 51 mill. for the same quarter of the previous year.
Market Comments:
Demand for extruded products in North America increased by 11 percent compared to the same quarter last year, driven by strong automotive demand and increased building and construction activity.
In Europe, demand was stable compared to the same quarter previous year Demand for extruded products is expected to be seasonally higher in the second quarter. Compared to the second quarter of last year, demand in Europe is expected to remain stable while the strong development in North America is expected to continue.
Orkla ASA
Oslo, 29 April 2015
Ref.:
Orkla ASA
SVP Investor Relations
Rune Helland
Tel.: +47 977 13 250
Email: rune.helland@orkla.no
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.