Press release: Continued operational improvement for Orkla

Orkla's operating profit (EBITA) increased by 9% to NOK 1,124 million in the
third quarter of 2011. Orkla Brands has compensated for the high raw material
prices, and delivered satisfactory results for the quarter. Borregaard continues
to benefit from good market conditions, and the company delivered its best
quarterly result ever. Sapa is experiencing softer markets, especially in
Europe, but profit performance for its extrusion operations in North America is
satisfactory.

"Due to our focus on operational excellence, Orkla can show improvement in
operating profit for the ninth consecutive quarter, despite challenging markets
for several of our businesses," reports Orkla President and CEO Bjørn M. Wiggen.

Results for Orkla Brands are on a par with last year, and margins for the
branded consumer goods business have stabilised. In difficult grocery markets,
Orkla Brands has implemented price increases to compensate for higher raw
material prices. Raw material prices were significantly higher than in the third
quarter of 2010, but have recently fallen slightly. Price trends for the
different raw materials vary substantially. Orkla Brands' Russian business has
achieved some profit improvement, and the merger of SladCo and Krupskaya is
proceeding as planned.

Sapa's extrusion business is experiencing softer markets. Profit performance for
Sapa Profiles North America is satisfactory, while the weak trend in Europe
continues. Expectations of underlying market growth in 2011 as a whole were
reduced in the course of the quarter. For Sapa, the fourth quarter is expected
to be slightly weaker than the third quarter.

"It is positive that Sapa's North American operations are still showing
improvement in more challenging markets. At the same time, the difficult
economic situation in Europe underscores the necessity of the additional
restructuring measures that are now being implemented in our European
organisation," Bjørn M. Wiggen points out.

Borregaard continues to experience favourable markets and achieve profit growth.
The speciality cellulose business reported particularly strong profit
improvement.

"The fact that Borregaard has delivered its highest quarterly result ever shows
that the organisation is capable of optimising its production and marketing
operations in good market conditions. At the same time, good progress is being
made on new innovations," declares President and CEO Bjørn M. Wiggen.

At Orkla Investor Day in London on 14 September, Orkla explained the company's
strategy. Orkla's growth is to take place in the branded goods business.
Furthermore, the Share Portfolio, REC, Borregaard and Sapa will lie outside
Orkla's future area of growth.

"We have clearly defined the direction in which Orkla is to go. Orkla is to be
further developed as the leading branded goods company in the Nordic region,
based on Orkla Brands' strong market positions. At the same time, we will give
priority to seeking out new companies operating in categories close to our
present businesses, while maintaining our centre of gravity in the Nordic
region. In our view, the unrest in the financial markets may offer greater
opportunities for value-creating acquisitions," says Wiggen.

"Orkla faces a demanding phase of transformation, in which we have deliberately
put ourselves under considerable pressure. We will deal with this process in
accordance with our fundamental principles, where the Group's goal of long-term
value creation will be determinant for our decisions," affirms Bjørn M. Wiggen.

Oslo, 27 October 2011

Ref.:

Senior VP Corporate Communication and Public Affairs
Johan Chr. Hovland
Telephone +47 22 54 44 86/+47 917 63 491

Senior VP Investor Relations
Rune Helland
Telephone +47 22 54 44 11

VP Investor Relations
Siv M. S. Brekke
Telephone +47 22 54 44 55/+47 930 56 093

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



3rd Quarter 2011:
http://hugin.info/111/R/1558355/481465pdf

Quarterly and accounting figures 3rd Quarter 2011:
http://hugin.info/111/R/1558355/481412xls

Presentation of 3rd Quarter 2011:
http://hugin.info/111/R/1558355/481409pdf




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Source: Orkla ASA via Thomson Reuters ONE

[HUG#1558355]