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Orkla ASA — Earnings Release 2015
Apr 29, 2015
3703_rns_2015-04-29_64c06d0c-44e0-4669-9f1c-24194ddeb6f4.html
Earnings Release
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Orkla ASA: Sapa (joint venture) - Announcement of results for the first quarter 2015
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
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: [email protected]
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
[HUG#1916244]