Underlying EBIT for Sapa Group for the fourth quarter 2013 reflects a seasonally weaker quarter and charges related to impairment of inventories and accounts receivables.
Key Figures – Sapa (50%)
|NOK million, except sales volumes||Fourth quarter 2013|
|Underlying Net Income (loss)||(140)|
|Sales volumes (kmt)||157|
|Earnings before financial items and tax (EBIT)||(393)|
Total volume for Sapa was somewhat higher compared to fourth quarter last year. Sapa’s restructuring agenda is progressing according to plan and reported EBIT is affected by related restructuring charges. Net debt at the end of Q4 was NOK 1.8 billion (100% basis).
Demand for extruded aluminium products in North America increased in the fourth quarter of 2013 compared to fourth quarter of 2012, mainly supported by growth in the automotive and building segments. Within the transport and industrial segments demand was stable.
In Europe, demand for extruded products was stable. Demand in the automotive market segment improved while demand for the transport, renewable energy and building segments weakened. Demand for the building and construction industry remained weak in Southern Europe in particular.
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.