Capital Markets Day 2011: Shaping the future
(Thomson Reuters ONE) -
After an eventful 2010 and the announcement of the biggest transaction in the
company's history, Norsk Hydro ASA is preparing for a new era as a resource-rich
and fully integrated aluminium company. A persistent focus on costs and
operational performance remains the top priority, as Hydro climbs into a new
league in a growing global aluminium industry.
As part of intensified efforts to improve the company's competitive position,
Hydro has accelerated the USD 300 per tonne improvement program which is now
expected to be achieved in 2013, a year earlier than previously indicated.
"Thanks to continuous improvement efforts combined with an ability and agility
to develop and capture business opportunities, we have emerged from the crisis
as an even stronger company. The planned acquisition of Vale's aluminium assets
is a bold and transforming move that will shape Hydro's future," said Hydro
President and CEO Svein Richard Brandtzæg.
"The production ramp-up of the major Qatalum plant in Qatar is 50 percent
complete. Unfortunately, the power plant is facing technical challenges related
to the cooling water system which could prompt an eight-week delay before we
reach full output from June 2011," Brandtzæg said.
World aluminum demand has picked up in 2010 and is expected to normalize at
around 7 percent outside China in 2011, giving grounds to an optimistic short,
medium and long-term outlook for upstream as well as downstream aluminium
products.
Hydro's Capital Markets Day includes the following highlights:
* The planned acquisition of Vale SA's bauxite, alumina and aluminium assets
is expected to be completed in the first half 2011. Hydro is working closely
with Vale to complete the transaction as soon as possible, and hope to
finalize the outstanding issues earlier and close in the first quarter.
* This transforming acquisition enhances Hydro's earnings robustness and
provides Hydro with a long alumina position for decades to come. The current
market environment is an attractive commercial foundation for alumina, and
Hydro believes future alumina pricing needs to reflect the economic
fundamentals of the bauxite and alumina value chain.
* Hydro's USD 300 per tonne cash cost improvement program for its fully owned
smelters is on track and is planned to be achieved by the end of 2013, one
year earlier than previously indicated. USD 50 per tonne in improvement has
been realized in 2010 and a further USD 125 per tonne is targeted for 2011.
The improvement program excludes impact of raw material prices and currency
rates.
* The ramp-up of the Qatalum smelter is about 50 percent complete following a
power outage in August. Further ramp-up is currently being hampered by
technical challenges related to the cooling water system for the steam
turbines under the power plant contract with General Electric/Doosan. These
challenges are unrelated to the August 2010 power outage, but could lead to
an eight-week delay from the earlier plan to reach full production by the
end of first quarter, with full production now expected to be reached from
June 2011.
* Total capital expenditures in 2011, including sustaining and growth
investments into Vale's aluminium assets, are expected to be about NOK 5.0
billion, down from NOK 6.7 billion in 2010. This includes investments in
Qatalum of NOK 4.0 billion in 2010. Sustaining capital expenditures are
expected to be NOK 3.5 billion in 2011.
* Following a 19 percent growth in primary aluminium demand in the world
outside China in 2010, Hydro expects a further growth in the range of 7
percent in 2011, 3-6 percent in 2012 and an improved supply and demand
balance. China is expected to remain balanced in primary aluminium for the
coming years.
Investor contact in Hydro
Contact Stefan Solberg
Cellular +47 91727528
E-mail Stefan.Solberg(at)hydro.com
Press contact in Hydro
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 acc. to §5-12 vphl
(Norwegian Securities Trading Act)
CMD Market and Rolled:
http://hugin.info/106/R/1479350/415041.pdf
CMD Primary and Finance:
http://hugin.info/106/R/1479350/415042.pdf
CMD Hydro:
http://hugin.info/106/R/1479350/415040.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#1479350]
Unternehmensinformation / Kurzprofil:
Datum: 13.01.2011 - 07:31 Uhr
Sprache: Deutsch
News-ID 50411
Anzahl Zeichen: 7734
contact information:
Town:
Oslo
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 215 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Capital Markets Day 2011: Shaping the future"
steht unter der journalistisch-redaktionellen Verantwortung von
Norsk Hydro (Nachricht senden)
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