Orkla’s profit affected by weak markets
First-quarter operating profit (EBITA) ended at NOK 233 million, compared with NOK 1.0 billion in the same period in 2008. Net profit was NOK 638 million, compared with NOK 687 million in the same period the previous year.
The global economic decline intensified in the first quarter, weakening markets for Aluminium Solutions and Materials. Orkla Brands achieved satisfactory results with an improvement of six per cent. Orkla has already implemented and is planning extensive measures to manage the cash flow and adapt production capacity to the weak market situation.
Orkla’s first-quarter operating revenues totalled NOK 13.4 billion, down from NOK 16.3 billion in 2008. Much of this decline is ascribable to weak markets and a 40 per cent decline in volume for Orkla Aluminium Solutions. Volume and price trends for Orkla Materials were also negative in the quarter. Orkla’s equity ratio was 50 per cent, while net interest-bearing debt was on a par with the end of 2008.