Norsk Hydro second quarter 2012: Weak markets and results, improvement ambitions stepped up
(Thomson Reuters ONE) -
Hydro's underlying earnings before financial items and tax amounted to NOK 549
million in the second quarter, compared with NOK 557 million in the previous
quarter. The weak quarterly results reflect low aluminium prices and a
challenging macro-economic environment, while ambitious improvement programs
helped reducing operating costs, contributing positively in the quarter.
* Underlying EBIT NOK 549 million
* Low aluminium prices
* Corrective measures and operational improvements
* Results positively influenced by lower operating costs
* Closure of Kurri Kurri aluminium plant, NOK 1.5 billion in charges
* 2012 aluminium demand growth outlook around 2 percent outside China
"The weak macro-economic environment continues to be a challenge in our main
markets, leading to low aluminium prices and a weak second quarter for Hydro,"
Hydro's President and CEO Svein Richard Brandtzæg said.
"Weak markets and low aluminium prices require tough corrective measures,
including capacity adjustment and operational improvements. We are continuing
our efforts with unabated strength, and we are now finalizing programs across
Hydro which in total will yield improvements in the range of NOK 2-3 billion
over the next two-three years. These programs are vital for Hydro's future
development, strengthening our competitive position in a demanding industry
picture," Brandtzæg said.
Bauxite & Alumina continued to deliver a weak underlying result for the quarter
due to low LME prices, pricing of long-term contracts and increasing energy
costs.
Underlying EBIT for Primary Metal increased compared to the first quarter mainly
due to somewhat higher aluminium prices and lower operating costs. Underlying
results for Qatalum were higher, mainly due to the final insurance settlement
relating to the power outage in 2010.
Hydro's midstream operations delivered lower underlying results compared to the
previous quarter due to negative currency effects. Excluding currency effects,
underlying EBIT was stable between the quarters.
Underlying EBIT improved for Hydro's downstream businesses from the first
quarter due to seasonally higher volumes for Extruded Products and lower
operating costs in general. However, results for the quarter continued to be
affected by the challenging macro-economic situation in Europe.
Energy delivered lower underlying EBIT in the second quarter compared to the
previous quarter, due to lower production and lower prices.
Operating cash flow amounted to NOK 0.8 billion for the quarter. Net cash used
for investment activities amounted to NOK 0.8 billion. Dividends paid in the
quarter amounted to NOK 1.7 billion. Hydro's net debt position was NOK 0.4
billion at the end of the second quarter.
Hydro incurred a reported loss before financial items and tax of NOK 720 million
in the second quarter including net unrealized derivative gains of NOK 300
million, rationalization and closure costs of NOK 408 million, impairment
charges amounting to NOK 1,175 million and positive metal effects of NOK 9
million.
In June, Hydro decided to close the remaining production at its Kurri Kurri
Aluminium plant in Australia following the curtailment of one production line in
January. Reported EBIT for the second quarter included NOK 1,154 million of
impairment charges and NOK 322 million of rationalization and closure costs
relating to the closure. Rationalization and restructuring initiatives in
Extruded Products, involving Building Systems and Extrusion Eurasia, resulted in
impairment charges and rationalization costs of NOK 106 million.
Hydro incurred a reported net loss amounting to NOK 1,712 million in the second
quarter including net foreign exchange losses of NOK 883 million. In the
previous quarter, Hydro had reported net income of NOK 585 million including net
foreign exchange gains of NOK 410 million.
Key financial
information %
change
NOK million, Second First % change Second prior First First
except per quarter quarter prior quarter year half half Year
share data 2012 2012 quarter 2011 quarter 2012 2011 2011
--------------------------------------------------------------------------------
Revenue 21 604 21 748 (1) % 24 728 (13) % 43351 45 867 91444
Earnings
before
financial
items and tax >(100)
(EBIT) (720) 665 >(100) % 2 111 % (54) 7 967 9 827
Items
excluded from
underlying
EBIT 1 269 (108) >100 % (206) >100 % 1 161 (4 613) (3694)
--------------------------------------------------------------------------------
Underlying
EBIT 549 557 (1) % 1 906 (71) % 1 106 3 354 6 133
--------------------------------------------------------------------------------
Underlying
EBIT :
Bauxite & >(100)
Alumina (188) (144) (31) % 272 % (332) 427 887
Primary Metal 240 30 >100 % 765 (69) % 271 1 348 2 486
Metal Markets 44 87 (50) % 244 (82) % 131 387 441
Rolled
Products 204 151 35 % 232 (12) % 355 463 673
Extruded
Products 53 14 >100 % 96 (44) % 68 201 151
Energy 362 556 (35) % 363 - 918 936 1 883
Other and >(100)
eliminations (166) (137) (21) % (65) % (303) (408) (389)
--------------------------------------------------------------------------------
Underlying
EBIT 549 557 (1) % 1 906 (71) % 1 106 3 354 6 133
--------------------------------------------------------------------------------
Underlying
EBITDA 1 777 1 870 (5) % 3 229 (45) % 3 648 5 643 11 152
--------------------------------------------------------------------------------
Net income >(100)
(loss) (1 712) 585 >(100) % 1 546 % (1127) 6 701 6 749
--------------------------------------------------------------------------------
Underlying
net income
(loss) 268 256 5 % 1 166 (77) % 524 2 000 3 947
--------------------------------------------------------------------------------
Earnings per >(100)
share (0.78) 0.25 >(100) % 0.69 % (0.54) 3.41 3.41
--------------------------------------------------------------------------------
Underlying
earnings per
share 0.12 0.13 (5) % 0.52 (77) % 0.25 0.97 1.89
--------------------------------------------------------------------------------
Financial
data:
--------------------------------------------------------------------------------
Investments 777 898 (13) % 1 085 (28) % 1 674 42 710 48025
Adjusted net
interest- (20
bearing debt (21125) (19231) (10) % 777) (2) % (21125) (20777) (19895)
--------------------------------------------------------------------------------
Key
Operational
information
--------------------------------------------------------------------------------
Alumina
production
(kmt) 1 491 1 464 2 % 1 448 3 % 2 955 2 220 5 264
Primary
aluminium
production
(kmt) 502 514 (2) % 505 (1) % 1 016 921 1 982
Realized
aluminium
price LME
(USD/mt) 2167 2 155 1 % 2 509 (14) % 2161 2 441 2 480
Realized
aluminium
price LME
(NOK/mt) 12637 12 404 2 % 13 803 (8) % 12523 13 724 13 884
Realized
NOK/USD
exchange rate 5.83 5.75 1 % 5.50 6 % 5.79 5.62 5.60
Metal
products
sales,
total Hydro
(kmt) 857 872 (2) % 877 (2) % 1728 1 649 3 303
Rolled
Products
sales volumes
to external
market (kmt) 228 227 - 242 (6) % 455 487 929
Extruded
Products
sales volumes
to external
market (kmt) 137 133 3 % 142 (4) % 270 278 536
Power
production
(GWh) 2 513 3 190 (21) % 1 830 37 % 5 703 4 138 9 582
--------------------------------------------------------------------------------
Investor contact
Contact Rikard Lindqvist
Cellular +47 41751199
E-mail Rikard.Lindqvist(at)hydro.com
Press contact
Contact Halvor Molland
Cellular +47 92979797
E-mail Halvor.Molland(at)hydro.com
*********
Certain statements included within this announcement contain forward-looking
information, including, without limitation, those relating to (a) forecasts,
projections and estimates, (b) statements of management's plans, objectives and
strategies for Hydro, such as planned expansions, investments or other projects,
(c) targeted production volumes and costs, capacities or rates, start-up costs,
cost reductions and profit objectives, (d) various expectations about future
developments in Hydro's markets, particularly prices, supply and demand and
competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk
management, 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-looking
statements are reasonable, these forward-looking statements are based on a
number of assumptions and forecasts that, by their nature, involve risk and
uncertainty. Various factors could cause our actual results to differ
materially from those projected in a forward-looking statement or affect the
extent to which a particular projection is realized. Factors that could cause
these differences include, but are not limited to: our continued ability to
reposition and restructure our upstream and downstream aluminium business;
changes in availability and cost of energy and raw materials; global supply and
demand for aluminium and aluminium products; world economic growth, including
rates of inflation and industrial production; changes in the relative value of
currencies and the value of commodity contracts; trends in Hydro's key markets
and competition; and legislative, regulatory and political factors.
No assurance can be given that such expectations will prove to have been
correct. Hydro disclaims any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Q2 Report:
http://hugin.info/106/R/1628685/521565.pdf
Q2 presentation:
http://hugin.info/106/R/1628685/521566.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson 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#1628685]
Unternehmensinformation / Kurzprofil:
Datum: 24.07.2012 - 07:01 Uhr
Sprache: Deutsch
News-ID 167826
Anzahl Zeichen: 13125
contact information:
Town:
Oslo
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 276 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Norsk Hydro second quarter 2012: Weak markets and results, improvement ambitions stepped up"
steht unter der journalistisch-redaktionellen Verantwortung von
Norsk Hydro (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
