Watch Live

Tweet TWEET

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

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 Brandtzaeg 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
information
                                                   % 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
 
Earnings
before
financial
items and tax
(EBIT)             669     (267)  > 100 %       46  > 100 %    432    10068
 
Items excluded
from
underlying
EBIT             (532)      249 > (100) %    1176 > (100) %    725   (4086)
---------------------------------------------------------------------------
Underlying
EBIT               138      (19)  > 100 %    1223   (89) %    1158    5982
---------------------------------------------------------------------------
 
Underlying
EBIT :
 
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
 
Rolled
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)
---------------------------------------------------------------------------
Underlying
EBIT               138     (19)  > 100 %     1223   (89) %    1158    5982
---------------------------------------------------------------------------
 
Underlying
EBITDA            1216      1114      9 %     2493   (51) %    5687   10497
---------------------------------------------------------------------------
 
Underlying
income (loss)
from
continuing
operations            58      (37)  > 100 %     1035   (94) %   509    3947
 
Underlying
income (loss)
from
discontinued
operations          (59)       17 > (100) %    (159)     63 %     (5)   (1)
---------------------------------------------------------------------------
Underlying net
income (loss)          0      (20)    100 %      876  (100) %     504  3947
 
Underlying
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
---------------------------------------------------------------------------
 
Financial
data:
---------------------------------------------------------------------------
Investments      1107       806     37 %     3907   (72) %    3382    47510
 
Adjusted net
interest-
bearing debt   (8271)   (13678)     40 %  (19895)     58 %  (8271)  (19895)
---------------------------------------------------------------------------
 
Key
Operational
information
 
---------------------------------------------------------------------------
Alumina
production
(kmt)            1397      1441    (3) %     1490    (6) %    5792     5264
 
Primary
aluminium
production
(kmt)             485       484      -        539   (10) %    1985     1982
 
Realized
aluminium
price LME
(USD/mt)         1940      2022    (4) %     2439   (20) %    2080     2480
 
Realized
aluminium
price LME
(NOK/mt)        11069     11856    (7) %    13834   (20) %   12047    13884
 
Realized
NOK/USD
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
 
Rolled
Products sales
volumes to
external
market (kmt)      226       228    (1) %      215      5 %     909      929
 
Power
production
(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 
[HUG#1677211] 
Investor contact
Contact
Rikard Lindqvist
Cellular    +47 41751199
E-mail      Rikard.Lindqvist@hydro.com 
Press contact
Contact
Halvor Molland
Cellular    +47 92979797
E-mail      Halvor.Molland@hydro.com
 
 
Press spacebar to pause and continue. Press esc to stop.