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Norsk Hydro first quarter result up on higher volumes and prices
Edited by : AL CIRCLE
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Hydro's underlying earnings before financial items and tax rose to NOK 1,077 million in the first quarter, from NOK 172 million in the fourth quarter 2012. Higher alumina, aluminium and power prices, increased sales volumes and improved margins contributed to underlying results.
"We continue to see positive effects of our ambitious improvement efforts across the company, further strengthening our industry position. We will strengthen our efforts, particularly in the strategically important Bauxite & Alumina business area, where operational performance is a top priority," Hydro's President and CEO Svein Richard Brandtzæg said.
"Overall, we experience increased macro uncertainty. We expect a balanced primary aluminium market in 2013, based on expected demand growth outside China of 2-4 percent, announced curtailments and new production coming on stream," Brandtzæg said.
Bauxite & Alumina's underlying EBIT was stable compared to the previous quarter. Positive effects relating to higher LME-linked alumina prices were offset by higher energy costs.
Primary Metal delivered improved underlying EBIT compared to the fourth quarter due to higher realized aluminium prices, increased premiums and seasonally higher sales volumes. Hydro's share of underlying results from Qatalum also improved during the quarter.
Higher volumes and higher margins for remelt operations together with improved results from sourcing and trading activities had a positive impact on underlying EBIT for Metal Markets during the quarter.
Operating cash flow was NOK 0.5 billion for the first quarter. Net cash used for investment activities amounted to NOK 0.5 billion. Hydro's net cash position amounted to around NOK 0.4 billion at the end of the first quarter, also influenced by cash used in discontinued operations and capitalized financial lease obligations.
"We continue to see positive effects of our ambitious improvement efforts across the company, further strengthening our industry position. We will strengthen our efforts, particularly in the strategically important Bauxite & Alumina business area, where operational performance is a top priority," Hydro's President and CEO Svein Richard Brandtzæg said.
"Overall, we experience increased macro uncertainty. We expect a balanced primary aluminium market in 2013, based on expected demand growth outside China of 2-4 percent, announced curtailments and new production coming on stream," Brandtzæg said.
Bauxite & Alumina's underlying EBIT was stable compared to the previous quarter. Positive effects relating to higher LME-linked alumina prices were offset by higher energy costs.
Primary Metal delivered improved underlying EBIT compared to the fourth quarter due to higher realized aluminium prices, increased premiums and seasonally higher sales volumes. Hydro's share of underlying results from Qatalum also improved during the quarter.
Higher volumes and higher margins for remelt operations together with improved results from sourcing and trading activities had a positive impact on underlying EBIT for Metal Markets during the quarter.
Operating cash flow was NOK 0.5 billion for the first quarter. Net cash used for investment activities amounted to NOK 0.5 billion. Hydro's net cash position amounted to around NOK 0.4 billion at the end of the first quarter, also influenced by cash used in discontinued operations and capitalized financial lease obligations.
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