ENP Newswire -
Release date- 22072014 -
Seasonally lower power production and prices weighed on underlying results, partly offset by higher all-in metal prices and improved results in Primary Metal.
Higher all-in aluminium and realized alumina prices
Alunorte production at record-high levels
Seasonally lower power production and prices
Signed agreement to take over
'Aluminium demand continues to exceed production resulting in a tight market, and we see the all-in metal prices at their highest levels since 2012. We are continuing our efforts to improve along the entire value chain, and Qatalum has now achieved a cost position among the 10 best aluminium plants in the world,' said President and CEO
Underlying EBIT for Bauxite & Alumina remained weak, but improved somewhat compared to first quarter of 2014 influenced by higher realized alumina prices and increased alumina sales volumes. Positive developments were mostly offset by negative currency developments and higher energy costs due to ICMS taxes for the full quarter.
'I am happy to see production at record-high levels above 6 million tons annualized at the Alunorte alumina refinery in
Underlying EBIT for Primary Metal improved in the second quarter influenced by higher product premiums, partly offset by lower sales volumes and somewhat lower realized aluminium prices.
Metal Markets delivered a lower underlying EBIT compared to the previous quarter mainly due to decreased results from sourcing and trading activities partly offset by higher volumes at remelters.
'It has been an eventful quarter: We signed an agreement to take over the
Underlying EBIT for Rolled Products was stable compared to the first quarter.
Compared to the first quarter of 2014, underlying EBIT for Energy declined mainly due to seasonally lower power production and lower prices in our production areas.
Underlying results for Sapa improved during the quarter, partly influenced by seasonally stronger sales volumes.
Operating cash flow amounted to
Reported earnings before financial items and tax amounted to
In the previous quarter reported earnings before financial items and tax amounted to
Income from continuing operations amounted to
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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.
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