Orkla ASA : Sapa (joint venture) - Announcement of results for the first quarter 2014

Sapa is a 50/50 joint venture between Norsk Hydro ASA's Extruded products business area and Orkla ASA's Sapa and is the global leader in extruded aluminum solutions.  The joint venture was established on 1 September 2013.

Underlying EBIT for Sapa improved in the first quarter 2014  compared to the first quarter 2013.
Sapa's restructuring agenda is progressing according to plan and reported EBIT is affected by related restructuring charges.

Key Figures - Sapa (100%)

NOK million  Proforma Q1 2013 Q1 2014
Sales volume (1000 tonnes) 346 359
Revenues 10 367 11 346
Underlying EBITDA 304 440
Underlying EBIT 16 155
Reported EBIT -148 -3

Orkla's share of Sapa's net income for the quarter was
NOK -51 million.

Market Comments:

Demand for extruded products in North America improved compared to fourth quarter 2013, driven by seasonality. Compared to the same quarter of the previous year, demand grew 5 percent, mainly supported by growth in the automotive and building market segments. Extruded demand in South America show signs of weakening.

In Europe, extruded products demand increased by 4 percent from the fourth quarter of last year, mainly due to seasonality. Demand improved 2 percent compared to the first quarter of 2013, supported by higher automotive demand, somewhat offset by weaker transport, renewable energy and building market segments, in particular in Southern Europe.

Global demand for precision tubing continued to be driven by increased demand from the automotive market sector.

Orkla ASA
Oslo, 30 April 2014

Rune Helland, SVP Investor Relations
Tel.: +47 97 71 32 50

Ane Bryn-Haugland, Investor Relations
Tel.: +47 98 06 81 26

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.