Norsk Hydro AS Norsk Hydro: Sapa (joint venture) - Announcement Of Results For The Second Quarter 2017

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Underlying EBIT for Sapa in the second quarter increased compared to the

previous quarter, in line with general seasonality in the industry but

also related to improved performance.

Sapa improved its underlying EBIT in the second quarter of 2017 compared

to the same period last year, ending the quarter at NOK 914 million. The

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quarterly result is the best in Sapa's history. The increase was driven

by a higher share of value-add business and internal improvements for

all business areas.

Underlying EBIT for the first half of 2017 improved compared to the same

period in 2016, influenced by the same factors as discussed above.

Net interest-bearing debt increased to NOK 3.1 billion at the end of the

quarter, mainly reflecting dividend payments of NOK 3 billion to the

owners.

Key Figures - Sapa

(100%) Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017

NOK million, except

sales volumes

Volume (kmt) 349 366 340 310 355 359

Total operating revenues 13 905 14 071 13 140 12 210 14 323 15 309

Underlying EBITDA 901 1 132 812 653 1 100 1 252

Underlying EBIT 571 804 487 335 778 914

Underlying net income 365 540 315 334 562 658

Reported EBIT 655 920 497 350 856 781

Demand for extruded products in Europe and North America increased

compared to the previous quarter by around 9 percent and 3 percent

respectively, driven by seasonality.

In North America, total demand for extruded products increased by around

3 percent compared to the same quarter last year. The increase was

driven by stronger automotive demand and higher building and

construction activities whereas demand from commercial transportation

was declining.

In Europe, total demand for extruded products increased by around 2

percent compared to the same quarter last year. Europe experienced

stronger automotive and transportation demand, as well as an improved

building and construction market.

Key figures per business area

Extrusion Europe Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017

NOK million, except

sales volumes

Volume (kmt) 148 157 142 130 154 155

Operating revenues 5 366 5 468 4 932 4 565 5 553 5 999

Underlying EBITDA 349 425 276 221 390 416

Underlying EBIT 223 304 154 97 274 292

Extrusion North America Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017

NOK million, except

sales volumes

Volume (kmt) 150 155 149 131 150 151

Operating revenues 5 265 5 234 5 183 4 617 5 514 5 753

Underlying EBITDA 414 362 361 199 437 466

Underlying EBIT 315 263 260 90 331 353

Building Systems Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017

NOK million, except

sales volumes

Volume (kmt) 19 21 18 19 20 21

Operating revenues 1 869 1 939 1 680 1 685 1 830 2 044

Underlying EBITDA 110 210 104 109 155 219

Underlying EBIT 75 166 67 74 119 183

Precision Tubing Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017

NOK million, except

sales volumes

Volume (kmt) 37 40 37 35 36 38

Operating revenues 1 620 1 664 1 549 1 543 1 651 1 734

Underlying EBITDA 144 169 135 161 180 193

Underlying EBIT 86 112 76 103 123 136

Other and eliminations Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017

Underlying EBITDA -116 -33 -64 -37 -63 -43

Underlying EBIT -128 -41 -69 -28 -69 -49

Investor contact

Contact Stian Hasle

Cellular +47 97736022

E-mail Stian.Hasle@hydro.com

Certain statements included in this announcement contain forward-looking

information, including, without limitation, information relating to (a)

forecasts, projections and estimates, (b) statements of Hydro management

concerning plans, objectives and strategies, such as planned expansions,

investments, divestments, curtailments 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, and (i) qualified statements such as

"expected", "scheduled", "targeted", "planned", "proposed", "intended"

or similar.

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 businesses; 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 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.

This announcement is distributed by Nasdaq Corporate Solutions on behalf

of Nasdaq Corporate Solutions clients.

The issuer of this announcement warrants that they are solely

responsible for the content, accuracy and originality of the information

contained therein.

Source: Norsk Hydro via Globenewswire

http://www.hydro.com/en/?WT.mc_id=Pressrelease

(END) Dow Jones Newswires

July 14, 2017 01:15 ET (05:15 GMT)