• A good quarter with strong profit growth
• 14 % volume growth driven by continuing good markets for profiles and building systems in Europe, and Heat Transfer in Asia
• Both higher prices and productivity improvements contributed to profit growth

Delivered volumes in the third quarter totalled 102,850 tonnes (90,318 tonnes)¹, which is an increase of 14 %. There was 17 % volume growth for Profiles in Europe and 15 % for Heat Transfer, while volume for Profiles in the USA declined 1 %. The acquisition of the Slovakian company Sapa Profily contributed 3,800 tonnes (4 %) of total volumes.

Demand on most European extrusion markets was good in the third quarter, but the growth rate was slightly lower than in the first six months. At the end of September, market growth was estimated to be over 5 % and Sapa Profiles had strengthened its position in most markets.  The market for building systems continued to develop well in the third quarter, and markets remained robust in France and Scandinavia. 

In the USA, market growth was slightly weaker in the third quarter, primarily due to market trends in the new housing segment. Heat Transfer in China reported another good quarter, and the Swedish business also achieved improved results and recovered some of the volumes and margins lost in previous periods. 

Third quarter operating revenues ended at NOK 3,904 million (NOK 2,887 million)¹. In SEK, revenues again grew 30 % this quarter, largely due to higher metal prices as well as volume growth. The average price in USD of aluminium delivered on the LME was 37 % higher than in the third quarter of 2005. Acquisitions led to a 4 % rise in operating revenues, while exchange rate differences in translation to SEK had a negative impact of 1 %.

Operating profit before amortisation increased by 65 % in the third quarter, to
NOK 190 million (NOK 115 million)¹. Restructuring costs totalling NOK 10 million, mainly related to workforce reduction programmes (NOK 57 million so far this year), were recognised in the third quarter. Profiles, Building System and Heat Transfer all achieved good profit growth compared to last year. Third quarter results were positively affected by higher sales prices in the Profiles business. The improvement programmes initiated in the first half of 2005 continued to improve productivity and had a positive impact on profit.

1 The figures in brackets are for the same period last year

Orkla third quarter 2006