Sapa reported EBIT of NOK -317 million in 2014, compared with NOK -4,017 million in 2013. To provide a better understanding of the underlying performance, Sapa focuses on underlying EBIT. Underlying EBIT is defined as EBIT, adding back, impairment charges, restructuring cost and unrealized hedge results which was recorded at NOK 652 million in 2014, compared with NOK -89 million in 2013.
In 2014, the amount of shipped volumes for general extrusions was 1,243,000 metric tonnes, compared with 1,212,000 mt in 2013. The amount of shipped volumes in 2014 included 28,000 mt related to Asia. Results remained weak in Asia, mainly in China. Results for 2014 includes write down of assets in China in the range of NOK 500 million. The Americas business area had good performance and improved profits in 2014. An optimized production system, combined with operational improvements, has led to increased profitability in North America over the past two years.
Income before tax Sapa’s income before tax amounted to NOK -584 million in 2014, compared to NOK -4,418 million in 2013, an improvement of NOK 3.834 million, which mainly reflects significant lower impairment and restructuring charges. Net financial items amounted to an expense of NOK 267 million 2014, compared to an expense of NOK 401 million in 2013. The decreased loss was also driven by higher volumes, improved margins and realized synergies from the ongoing restructuring activities. Net loss and total tax expense Sapa’s net result amounted to NOK -622 million in 2014, compared to NOK -4,222 million in 2013.
Assets, capital employed and investments Total assets increased by NOK 3,398 million in 2014 to NOK 27,629 million (24,231) at year-end. Investments for 2014 were affected by ongoing restructuring activities.
Sapa is financed through equity and external debt, through a syndicated multi currency revolver credit facility of EUR 700 million, with maturity in 2018, which is treated as a long-term loan. The parent company has no external revenue. The costs in the parent company are charged to the subsidiaries in accordance with intra-group service charges principles. In December, Sapa AS received a dividend from Sapa AB amounting to NOK 5,769 million (SEK 6,012 million), presented as financial income. The received dividend has decreased the book value of the shares in Sapa AB. The company is financed through equity and long-term debt. Net profit amounting to NOK 28 million (neg:136) is transferred to retained earnings.
