Orkla ASA: Sapa (joint venture) - Announcement of results for the third quarter 2016

·           Increased value-add margins
·           Improved cost position
·           Continued growth in Underlying EBIT

Underlying EBIT for Sapa increased compared to the same quarter of the previous year driven by higher value-add margins and positive effects from continuous improvements. The improvements were partly offset by slightly reduced sales volumes, mainly in the US.

Compared to the same period last year, market demand increased by 0.7% in North America and 2.1% in Europe. In North America, building and construction activity and automotive demand contributed positively, while the transportation segment experienced slower demand. In Europe there were positive developments in automotive and transportation and a mixed picture in building and construction.

Underlying EBIT year-to-date increased compared to last year, driven by the same main factors as for the third quarter.

Going forward, a continued moderate market growth is expected in Europe, while certain market segments in North America show indications of softening. In both North America and Europe, aluminium substitution in the automotive industry is contributing positively.

Key Figures - Sapa (100%)

NOK million  Q3-16 Q3-15 YTD-16 YTD-15 FY15
Sales volume (1000 tonnes) 340 341 1 055 1 052 1 363
Revenues 13 141 13 896 41 117 42 431 55 252
Underlying EBITDA 812 734 2 845 2 238 2 729
Underlying EBIT 487 404 1 862 1 279 1 407
Reported EBIT 497 174 2 071 440 528

Orkla ASA
Oslo, 25 October 2016

Ref.:

Senior Vice President Investor Relations
Mattias Orrenius
Tel.: +47 983 66 334
Email: mattias.orrenius@orkla.no

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