Orkla ASA: Sapa (joint venture) - Announcement of results for the first quarter 2016
Sapa is a 50/50 joint venture between Norsk Hydro ASA's former Extruded products business area and Orkla ASA's Sapa (ex. Gränges) and is the global leader in extruded aluminum solutions. The joint venture was established on 1 September 2013.
Underlying EBIT for Sapa increased significantly compared to the same quarter of the previous year. Performance improved across all business areas mainly due to the effects of the improvement programmes, increased share of higher margin business, and positive currency effects from the weakening Norwegian krone against the US dollar and Euro. In addition, a continued strong market supported the North American operations.
Key Figures - Sapa (100%)
| NOK million | Q1 2016 | Q1 2015 |
| Sales volume (1,000 tonnes) | 349 | 353 |
| Revenues | 13,905 | 14,134 |
| Underlying EBITDA | 901 | 705 |
| Underlying EBIT | 571 | 392 |
| Reported EBIT | 655 | 201 |
Orkla's share of Sapa's net income for the quarter was NOK 209 million compared to NOK 45 mill. for the same quarter of the previous year.
Market comments
Compared to the same quarter of the previous year, demand increased by 3 percent in North America as a result of increased building and construction activity and strong automotive demand.
Compared to the same quarter last year, demand grew marginally in Europe. A stabilising building and construction market contributed to this development.
Demand for extruded products is expected to seasonally improve going into the second quarter of 2016 and also compared to the second quarter of 2015. In both North America and Europe, aluminium substitution in the automotive industry is contributing positively.
Orkla ASA
Oslo, 27 April 2016
Ref.:
Senior Vice President Investor Relations
Mattias Orrenius
Tel.: +47 983 66 334
Email: [email protected]
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Source: Orkla ASA via Globenewswire
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