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26 OCTOBER 2017 AL CIRCLE

Hydro’s Q3 2017 results down on increased raw material costs and currency

EDITED BY : HEENA IQBAL 2MINS READ

Hydro yesterday announced results for the third quarter of 2017. The company’s underlying earnings before financial items and tax decreased to NOK 2,446 million in the third quarter.

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Hydro President & CEO, Svein Richard Brandtzæg said, “"We have lifted our global demand estimate for 2017 to 5-6%, indicating a continued strong demand for aluminium. There is a positive market sentiment for aluminium, mainly driven by curtailments of primary production in China, which have supported the market balance in the quarter."

"This quarter marks a new chapter in our history, adding Extruded Solutions as a fifth business area in Hydro. We are now 35,000-people strong, with 150 sites all over the world and 30,000 customers throughout the entire value chain of aluminium. We have a global reach as well as being very close to our customers and all the communities we serve."

Underlying EBIT for Primary Metal declined in Q3 quarter due to negative currency effects.

Underlying EBIT for Sapa decreased compared to the previous quarter. The acquisition of Sapa completed on October 2.  

Underlying EBIT for Bauxite & Alumina decreased due to higher bauxite and caustic prices, negative currency effects and increased depreciation, primarily in Paragominas, were partly offset by improved consumption factors.

Underlying EBIT for Rolled Products increased due to an accrual for employee compensation recognized in the second quarter.

Progress on Hydro's "Better" improvement program is behind plan. it does not expect to reach the year- end target of NOK 500 million. Karmøy Technology Pilot on time and budget and expected to in Q4 2017.

Hydro's net cash position increased to NOK 7.7 billion at the end of the quarter. Net cash provided by operating activities amounted to NOK 3.0 billion.

Reported earnings before financial items and tax amounted to NOK 2,323 million in Q3. Net income amounted to NOK 2,184 million including a reduction in tax expense and related interest income of NOK 125 million in total following a closed tax case in September 2017.


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EDITED BY : HEENA IQBAL 2MINS READ

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