Orkla ASA: Sapa (joint venture) - Announcement of results for the third quarter 2014
Sapa is a 50/50 joint venture between Norsk Hydro and Orkla and is the global leader in extruded aluminum solutions. The joint venture was established on 1 September 2013 between Norsk Hydro ASA's business area Extruded products and Orkla ASA's Sapa.
Underlying EBIT for Sapa improved in the third quarter 2014 compared to the third 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 Q3 2013 | Q3 2014 |
| Sales volume (1000 tonnes) | 345 | 350 |
| Revenues | 10 798 | 11 603 |
| Underlying EBITDA | 328 | 492 |
| Underlying EBIT | 24 | 201 |
| Reported EBIT | -1 985 | 198 |
Orkla's share of Sapa's net income for the third quarter was NOK 54 million.
Market
Demand for extruded products in North America increased by 7 percent compared to the same quarter of the previous year, supported by higher activity in both the automotive and building and construction segments. Demand for extruded products in Brazil continued to be weak.
In Europe, demand for extruded products improved one percent compared to the third quarter of 2013, supported by growth within the automotive market segment, somewhat offset by the continued weak building markets in Southern-Europe.
Global demand for precision tubing continued to be driven by increased demand from the automotive sector.
Demand for extruded products is expected to decline in the fourth quarter mainly due to seasonality.
Orkla ASA
Oslo, 22 October 2014
Contacts:
Rune Helland, SVP Investor Relations
Tel.: +47 97 71 32 50
Ane Bryn-Haugland, Investor Relations
Tel.: +47 98 06 81 26