News Feed Item

Norsk Hydro fourth quarter 2012: Improved result on lower input costs

OSLO, NORWAY -- (Marketwire) -- 02/12/13 -- Hydro's underlying earnings before financial items and tax improved to NOK 138 million in the fourth quarter 2012 from an underlying loss of NOK 19 million in the previous quarter. Lower energy costs in Bauxite & Alumina, lower variable costs in Primary Metal and improved results for the Qatalum aluminum plant contributed to underlying results.

* Underlying EBIT NOK 138 million

* Lower raw material costs

* Lower realized aluminium prices, higher alumina prices

* Higher power prices and production in Energy

* 2013 aluminium demand growth outlook 2-4 % in world outside China

* Proposed 2012 dividend NOK 0.75 per share

"On the back of continuing challenging markets, our focus remains on improving performance across our value chain. The ambitious USD 300 program is expected to be completed at the end of 2013, strengthening Hydro's industry position. Our improvement efforts will continue, including plans to optimize production and performance in our bauxite and alumina operations in Brazil," Hydro's President and CEO Svein Richard Brandtzæg said.

Bauxite & Alumina's underlying EBIT improved compared to the third quarter, due to higher alumina prices and lower energy costs for Alunorte, together with higher results from commercial operations.

Underlying EBIT for Primary Metal improved compared to the third quarter, mainly due to better results in Qatalum. Lower realized aluminium prices negatively affected underlying EBIT, partly offset by lower operating costs. Savings targeted for Hydro's cost improvement program were achieved for the year.

Excluding inventory and currency effects, underlying results for Hydro's Metal Markets operations declined, mainly due to lower volumes and margins together with lower results from sourcing and trading operations.

Underlying EBIT for Rolled Products declined compared with the third quarter, impacted by lower margins and seasonally higher maintenance costs.

Underlying EBIT for Energy increased in the quarter due to seasonally higher production and prices.

Other and eliminations includes a significant negative charge related to elimination of unrealized gains and losses on internal inventories.

Operating cash flow was NOK 2.8 billion for the quarter. Net cash used for investment activities amounted to NOK 1.0 billion. Hydro's net cash position was around NOK 1.7 billion at the end of the fourth quarter.

For the full year 2012, underlying EBIT declined substantially to NOK 1,158 million from NOK 5,982 million in 2011. Lower aluminium prices and alumina prices had a significant effect on underlying results for the year. Ongoing efforts to reduce costs and improve operations partly offset the negative market effects.

On October 15 Hydro announced an agreement with Orkla ASA to combine their respective extrusion profile, building systems and tubing businesses in a new joint venture company to be named Sapa. Completion of the transaction is expected to take place in the first half of 2013, following approval by the relevant competition authorities. Following the agreement, operating results for Hydro's Extruded Products are presented net of financial items and tax as Income (loss) from discontinued operations and excluded from reported EBIT and underlying EBIT.

Hydro's Board of Directors proposes to pay a dividend of NOK 0.75 per share for 2012, reflecting the company's strong commitment to provide a cash return to its shareholders. The dividend reflects our operational performance for 2012 and a strong financial position, also taking into consideration the uncertain market outlook.

Earnings before financial items and tax amounted to NOK 669 million in the fourth quarter, including net unrealized derivative gains and positive metal effects of NOK 555 million and other items amounting to negative NOK 23 million.

In the previous quarter, Hydro incurred a reported loss before financial items and tax of NOK 267 million, including net unrealized derivative losses and negative metal effects of NOK 137 million and other items amounting to negative NOK 112 million. Other items included impairments of non current assets of NOK 140 million and a gain of NOK 68 million relating to pensions.

Income from continuing operations amounted to NOK 364 million in the fourth quarter including net foreign exchange loss of NOK 102 million. In the previous quarter, Hydro incurred a net loss from continuing operations of NOK 64 million, including net foreign exchange gains of NOK 282 million.

Loss from discontinued operations amounted to NOK 251 million in the quarter, including rationalization and closure costs of NOK 174 million. In the third quarter, loss from discontinued operations amounted to NOK 167 million, including rationalization and closure costs of NOK 43 million and a loss on disposal of Portalex amounting to NOK 144 million.

Key financial
                                                   % change
NOK million,    Fourth     Third % change   Fourth    prior
except per     quarter   quarter    prior  quarter     year    Year    Year
share data        2012      2012  quarter     2011  quarter    2012    2011

Revenue          15585     14722      6 %    17157    (9) %   64181   71500

items and tax
(EBIT)             669     (267)  > 100 %       46  > 100 %    432    10068

Items excluded
EBIT             (532)      249 > (100) %    1176 > (100) %    725   (4086)
EBIT               138      (19)  > 100 %    1223   (89) %    1158    5982


Bauxite &
Alumina          (73)     (386)     81 %     159 > (100) %   (791)      887

Primary Metal      53      (10)  > 100 %     484    (89) %     314    2486

Metal Markets      69         7  > 100 %     (39)  > 100 %     208     441

Products           71       214   (67) %       86   (17) %     640     673

Energy            322       220     47 %      441   (27) %    1459    1883

Other and
eliminations     (305)     (64) > (100) %      92 > (100) %   (672)   (389)
EBIT               138     (19)  > 100 %     1223   (89) %    1158    5982

EBITDA            1216      1114      9 %     2493   (51) %    5687   10497

income (loss)
operations            58      (37)  > 100 %     1035   (94) %   509    3947

income (loss)
operations          (59)       17 > (100) %    (159)     63 %     (5)   (1)
Underlying net
income (loss)          0      (20)    100 %      876  (100) %     504  3947

earnings per
share               0,00      0,00        -     0,42  (100) %    0,26  1,89

Net income
(loss)               113     (231)  > 100 %    (749)  > 100 %  (1246)  6749

Earnings per
share               0,07    (0,14)  > 100 %   (0,36)  > 100 %  (0,61)  3,41

Investments      1107       806     37 %     3907   (72) %    3382    47510

Adjusted net
bearing debt   (8271)   (13678)     40 %  (19895)     58 %  (8271)  (19895)


(kmt)            1397      1441    (3) %     1490    (6) %    5792     5264

(kmt)             485       484      -        539   (10) %    1985     1982

price LME
(USD/mt)         1940      2022    (4) %     2439   (20) %    2080     2480

price LME
(NOK/mt)        11069     11856    (7) %    13834   (20) %   12047    13884

exchange rate    5,71      5,86    (3) %     5,67      1 %    5,79     5,60

Metal products
sales, total
Hydro (kmt)       731       794    (8) %      804    (9) %    3254     3303

Products sales
volumes to
market (kmt)      226       228    (1) %      215      5 %     909      929

(GWh)            2448      2157     13 %     2706   (10) %   10307     9582


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.

Q4 report: http://hugin.info/106/R/1677211/546900.pdf

Q4 presentation: http://hugin.info/106/R/1677211/546907.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


Investor contact
Rikard Lindqvist
Cellular +47 41751199
E-mail Email Contact

Press contact
Halvor Molland
Cellular +47 92979797
E-mail Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTrend processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
Most of us already know that adopting new cloud applications can boost a business’s productivity by enabling organizations to be more agile and ready to change course in our fast-moving and connected digital world. But the rapid adoption of cloud apps and services also brings with it profound security threats, including visibility and control challenges that aren’t present in traditional on-premises environments. At the same time, the cloud – because of its interconnected, flexible and adaptable...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
Virgil consists of an open-source encryption library, which implements Cryptographic Message Syntax (CMS) and Elliptic Curve Integrated Encryption Scheme (ECIES) (including RSA schema), a Key Management API, and a cloud-based Key Management Service (Virgil Keys). The Virgil Keys Service consists of a public key service and a private key escrow service. 

WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, will discuss the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docke...
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...