Norsk Hydro first quarter 2013: Result up on higher volumes and prices

Marketwired

OSLO, NORWAY--(Marketwired - Apr 24, 2013) - Hydro's underlying earnings before financialitems and tax rose to NOK 1,077 million in the first quarter, from NOK 172million in the fourth quarter 2012. Higher alumina, aluminium and powerprices, increased sales volumes and improved margins contributed tounderlying results.


* Underlying EBIT NOK 1,077 million
* Higher sales volumes driven by seasonality
* Increased realized alumina and aluminium prices
* Higher production and prices in Energy
* Continued challenging markets

"We continue to see positive effects of our ambitious improvement effortsacrossthe company, further strengthening our industry position. We willstrengthen ourefforts, particularly in the strategically important Bauxite & Aluminabusinessarea, where operational performance is a top priority," Hydro's PresidentandCEO Svein Richard Brandtzæg said.

"Overall, we experience increased macro uncertainty. We expect a balancedprimary aluminium market in 2013, based on expected demand growth outsideChinaof 2-4 percent, announced curtailments and new production coming onstream,"Brandtzæg said.

Bauxite & Alumina's underlying EBIT was stable compared to the previousquarter.Positive effects relating to higher LME-linked alumina prices were offsetbyhigher energy costs.

Primary Metal delivered improved underlying EBIT compared to the fourthquarterdue to higher realized aluminium prices, increased premiums and seasonallyhigher sales volumes. Hydro's share of underlying results from Qatalum alsoimproved during the quarter.

Higher volumes and higher margins for remelt operations together withimprovedresults from sourcing and trading activities had a positive impact onunderlyingEBIT for Metal Markets during the quarter.

Rolled Products' underlying EBIT increased compared to the fourth quarter,influenced by seasonally higher shipments and higher margins. Operatingcostswere stable.

Underlying EBIT for Energy increased in the quarter due to seasonallyhigherproduction and prices.

Other and eliminations underlying EBIT included positive effects relatingto theelimination of unrealized gains and losses on internal inventories comparedwithsignificant negative charges in the previous quarter.

Operating cash flow was NOK 0.5 billion for the first quarter. Net cashused forinvestment activities amounted to NOK 0.5 billion. Hydro's net cashpositionamounted to around NOK 0.4 billion at the end of the first quarter, alsoinfluenced by cash used in discontinued operations and capitalizedfinanciallease obligations.

Reported earnings before financial items and tax amounted to NOK 705million inthe first quarter. In addition to the factors discussed above, reportedEBITincluded net unrealized derivative losses and positive metal effectsamountingto NOK 294 million in total, and rationalization and closure cost of NOK 78million. In the previous quarter, reported EBIT amounted to NOK 704million,including net unrealized derivative gains and positive metal effects of NOK555million, and other items amounting to negative NOK 23 million.

Income from continuing operations amounted to NOK 254 million in the firstquarter including a net foreign exchange loss of NOK 115 million. In theprevious quarter, income from continuing operations amounted to NOK 334millionincluding a net foreign exchange loss of NOK 102 million.

Income from discontinued operations amounted to NOK 9 million in the firstquarter including rationalization and closure costs of NOK 40 million. Inthefourth quarter, loss from discontinued operations amounted to NOK 247millionincluding rationalization and closure costs of NOK 174 million.

As of January 1, 2013 Hydro has implemented a new accounting standard foremployee benefits (IAS19R) with retrospective application resulting inchangesto the prior periods in this report.


Key
financial
information %
% change
NOK million, First Fourth change First prior
except per quarter quarter prior quarter year Year
share data 2013 2012 quarter 2012 quarter 2012
--------------------------------------------------------------------------


Revenue 16 111 15 585 3 % 17 044 (5) % 64 181



Earnings
before
financial
items and
tax (EBIT) 705 704 - 710 (1) % 571

Items
excluded
from
underlying
EBIT 372 (532) >100 % (132) >100 % 725
--------------------------------------------------------------------------
Underlying
EBIT 1 077 172 >100 % 578 86 % 1 297
--------------------------------------------------------------------------


Underlying
EBIT :

Bauxite &
Alumina (63) (73) 13 % (144) 56 % (791)

Primary
Metal 364 58 >100 % 36 >100 % 335

Metal
Markets 146 70 >100 % 88 66 % 210

Rolled
Products 153 70 >100 % 150 2 % 637

Energy 517 322 60 % 556 (7) % 1 459

Other and
eliminations (38) (275) 86 % (108) 64 % (553)
--------------------------------------------------------------------------
Underlying
EBIT 1 077 172 >100 % 578 86 % 1 297
--------------------------------------------------------------------------


Underlying
EBITDA 2 165 1 250 73 % 1 780 22 % 5 827
--------------------------------------------------------------------------


Underlying
income
(loss) from
discontinued
operations 49 (55) >100 % (3) >100 % (5)


--------------------------------------------------------------------------
Net income
(loss) 263 87 >100 % 575 (54) % (1 331)

Underlying
net income
(loss) 648 (24) >100 % 233 >100 % 408
--------------------------------------------------------------------------



Earnings per
share 0.14 0.06 >100 % 0.24 (43) % (0.65)

Underlying
earnings per
share 0.30 (0.01) >100 % 0.12 >100 % 0.21
--------------------------------------------------------------------------


Financial
data:
--------------------------------------------------------------------------
Investments 1 056 1 107 (5) % 776 36 % 3 382

Adjusted net
interest-
bearing debt (9 290) (8 304) (12) % (11 470) 19 % (8 304)
--------------------------------------------------------------------------




Key
Operational
information


--------------------------------------------------------------------------
Alumina
production
(kmt) 1 361 1 397 (3) % 1,464 (7) % 5 792

Primary
aluminium
production
(kmt) 478 485 (1) % 514 (7) % 1 985

Realized
aluminium
price LME 2
(USD/mt) 043 1 940 5 % 2 155 (5) % 2 080

Realized
aluminium
price LME
(NOK/mt) 11 533 11 069 4 % 12 404 (7) % 12 047

Realized
NOK/USD
exchange
rate 5.64 5.71 (1) % 5.75 (2) % 5.79

Metal
products
sales, total
Hydro (kmt) 754 731 3 % 872 (13) % 3 254

Rolled
Products
sales
volumes to
external
market (kmt) 236 226 5 % 227 4 % 909

Power
production
(GWh) 2 904 2 448 19 % 3 190 (9) % 10 307
--------------------------------------------------------------------------

*********

Certain statements included within this announcement contain forward-lookinginformation, including, without limitation, those relating to (a)forecasts,projections and estimates, (b) statements of management's plans, objectivesandstrategies for Hydro, such as planned expansions, investments or otherprojects,(c) targeted production volumes and costs, capacities or rates, start-upcosts,cost reductions and profit objectives, (d) various expectations aboutfuturedevelopments in Hydro's markets, particularly prices, supply and demand andcompetition, (e) results of operations, (f) margins, (g) growth rates, (h)riskmanagement, as well as (i) statements preceded by "expected", "scheduled","targeted", "planned", "proposed", "intended" or similar statements.

Although we believe that the expectations reflected in such forward-lookingstatements are reasonable, these forward-looking statements are based on anumber of assumptions and forecasts that, by their nature, involve risk anduncertainty. Various factors could cause our actual results to differmaterially from those projected in a forward-looking statement or affecttheextent to which a particular projection is realized. Factors that couldcausethese differences include, but are not limited to: our continued ability toreposition and restructure our upstream and downstream aluminium business;changes in availability and cost of energy and raw materials; global supplyanddemand for aluminium and aluminium products; world economic growth,includingrates of inflation and industrial production; changes in the relative valueofcurrencies and the value of commodity contracts; trends in Hydro's keymarketsand competition; and legislative, regulatory and political factors.

No assurance can be given that such expectations will prove to have beencorrect. Hydro disclaims any obligation to update or revise any forward-lookingstatements, whether as a result of new information, future events orotherwise.

This information is subject of the disclosure requirements pursuant tosection5-12 of the Norwegian Securities Trading Act.

Q1 presentation:http://hugin.info/106/R/1695460/557927.pdf

Q1 report:http://hugin.info/106/R/1695460/557925.pdf

This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Norsk Hydro via Thomson Reuters ONE

[HUG#1695460]

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