Volume delivery in the first quarter totalled 242,800 tonnes compared with 118,000 tonnes in the first quarter of 2007. Operating revenues amounted to NOK 7,432 million, up from NOK 4,653 million in 2007. The integration of Alcoa's extrusion business accounted for a large part of this growth. EBITA ended at NOK 343 million, compared with NOK 350 million the year before. The EBITA margin was 4.6 %, down 2.9percentage points from 2007. Negative currency translation effects on operating revenues accounted for a 7 % drop compared with the same quarter of 2007, while the currency translation effect on EBITA was negative by 5 %. Orders deferred from December to January had a positive timing effect on first-quarter EBITA, amounting to NOK 30 million. However, this was partly offset by an early Easter which reduced the number of working days compared with last year.
Sapa Profiles delivered a total volume of 206,600 tonnes, of which the former Alcoa units contributed with 128,200 tonnes. Volume from the former Sapa units ended at 78,500 tonnes, compared with 85,200 tonnes in 2007. First-quarter operating revenues for Sapa Profiles totalled NOK 5,961 million (NOK 3,205 million)1, while EBITA was NOK 200 million, compared with NOK 222 million last year. The closure of the plants in Banbury in the UK and Noblejas in Spain, as well as the restructuring of the extrusion operations in the south-east US, are proceeding as planned.
Sapa Heat Transfer sold a total volume of 35,800 tonnes. First-quarter operating revenues for Sapa Heat Transfer & Building System amounted to NOK 1,754 million (NOK 1,778 million)1, while EBITA was NOK 143million (NOK 128 million)1.
The US market remained weak, but relatively stable in the first quarter. The trend on the European market has been more varied, but all the markets are feeling the impact of a weakened building and construction industry that is sending ripple effects to other sectors. The decline in the industry was first seen in the UK and Spain and has since spread to most of the other countries in Europe. In the transport and engineering industry, however, demand has remained stable, and a few niche segments (such as the solar industry) do not appear to be affected by the general trend. The price of metal has been high for much of the quarter, but now seems to have stabilised.
On 15 February Sapa AB signed a letter of intent to buy the Chinese extrusion company, Kam Kiu. With more than 30 presses and extensive processing activities, Kam Kiu is one of China's largest extrusion manufacturers. Kam Kiu has sales of approximately NOK 1.2 billion and has 2,100 employees. The company, which is located in Guangdong Province, has a strong export position and is focusing increasingly on the Chinese market. The acquisition is expected to be concluded in the second quarter subject to a satisfactory due diligence and the approval of relevant management boards and authorities.
In January Sapa Profiles in Sweden announced that SEK 30 million will be invested in the Sapa Innovation Centre, which will offer customers and other Sapa companies the benefit of the Sapa Group's collective experience and expertise.
1 The figures in brackets refer to the corresponding period of the previous year.
2 Excluding acquisitions, divestments and currency translation effects