OREANDA-NEWS. Underlying EBIT for Sapa increased compared to the previous quarter, mainly due to seasonally higher market demand and stronger margins.

Underlying EBIT for Sapa increased significantly compared to the same quarter of the previous year. Earnings improved across all business areas, driven by positive effects from improvement programs, increased share of value-add products and positive market developments. The second quarter last year was negatively influenced by sharply falling metal premiums in North America.

Underlying EBIT for the first half of 2016 improved compared with the same period in 2015, influenced by the same factors discussed above.

Key Figures - Sapa (100%)  Second quarter 2016 First quarter 2016 Second quarter 2015 First half 2016 First half 2015  Year 2015
NOK million, except sales volumes            
Operating revenues 14 071 13 905 14 484 27 976 28 535 55 252
Underlying EBITDA 1 132 901 799 2 033 1 504 2 729
Underlying EBIT 804 571 483 1 375 875 1 407
Sales volumes (kmt) 366 349 358 715 711 1 363
Reported EBIT 920 655 65 1 574 266 528

Demand for extruded products in Europe and North America increased compared to the previous quarter by 4.5 percent and 3 percent, respectively, driven by seasonality.

Compared to the same period last year, market demand increased by 2.5 percent in North America and 1.5 percent in Europe. In North America, building and construction activity and automotive demand contributed positively. In Europe there were positive developments in automotive and transportation and a mixed picture in building and construction.

Going forward, a continued moderate market growth is expected in Europe, while certain market segments in North America show indications of flattening out. In both North America and Europe, aluminium substitution in the automotive industry is contributing positively. The second quarter is a seasonally strong quarter, and demand traditionally decreases in the third quarter.

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 because of new information, future events or otherwise.

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