Orkla ASA: Sapa (joint venture) - Announcement of results for the third 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 increased significantly compared to the same quarter of the previous year driven by positive contributions from improvement programs and restructuring efforts, strong North American demand, as well as positive currency effects.
Underlying EBIT for the first nine months of 2015 improved substantially compared with the same period in 2014, influenced by the same factors as discussed above. The improvement was partly offset by negative effects from sharply falling metal premiums in North America.
Key figures - Sapa (100%)
| NOK million | Q3 2015 | Q3 2014 |
| Sales volume (1 000 tonnes) | 341 | 350 |
| Revenues | 13 907 | 11 603 |
| Underlying EBITDA | 734 | 492 |
| Underlying EBIT | 404 | 201 |
| Reported EBIT | 174 | 198 |
Orkla's share of Sapa's net income for the quarter was NOK 54 million compared to NOK 54 mill. for the same quarter of the previous year.
Market comments
Demand for extruded products in North America continued to be strong. Compared to the same quarter of the previous year, demand grew by 6 percent, due to strong automotive and truck demand and a ramp-up of residential building and construction activity.
In Europe, demand increased by 2 percent compared to the same quarter of the previous year, but with a continued weak building and construction market.
Orkla ASA
Oslo, 21 October 2015
Ref.:
Senior Vice President Investor Relations
Mattias Orrenius
Tel.: +47 983 66 334
Email: mattias.orrenius@orkla.no
Group Director Corporate Communications and Corporate Affairs
Håkon Mageli
Tel.: +47 928 45 828
Email: hakon.mageli@orkla.no
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.