Orkla ASA: Sapa joint venture
The transaction to combine Norsk Hydro ASA's Extruded products business area and Orkla ASA's Sapa into a 50/50 joint venture has been completed as planned. Sapa, the new global leader in extruded aluminum solutions, was established on 1 September 2013.
Market comments for the third quarter
Extruded products demand in North America increased 2 percent in the third quarter of 2013 compared to third quarter of 2012. Demand was mainly supported by growth in the automotive segment. Within the transport and industrial segments demand was stable.
The decline in the beginning of 2013 in demand for extruded products in Europe has slowed. Total market demand was down approximately 2 percent in the third quarter of 2013 compared to the second quarter and the third quarter of 2012. Transport, renewable energy and building segments contributed negatively, while automotive, especially in emerging markets, continued to support demand in Europe. The building industry remained weak in particular in Southern Europe.
Global demand in the automotive sector supported the precision tubing segment in emerging markets in particular.
Sapa's results in September
Underlying EBIT for the Sapa group for September reflects positive developments in the Americas and within the Precision Tubing segment. Weak European extrusion demand affected both the general extrusion business and the building systems business.
Orkla's share of Sapa's net income for September was NOK -35 million on the line for associated companies and joint ventures.
Pro-forma information for Sapa (joint venture) is attached.
Rune Helland, SVP Investor Relations
Tel.: +47 97 71 32 50
Anders Kalleberg, Investor Relations
Tel.: +47 99 04 24 98