Press release: Profit growth and more focused o...
Orkla's operating profit (EBITA) increased by 19% to NOK 786 million in the
first quarter of 2011. Sapa continues to achieve profit growth, and Borregaard
can report strong markets and good results. Orkla Brands' Nordic businesses
performed satisfactorily, taking account of negative Easter effects.
The Nordic operations in Orkla Brands delivered profit on a par with the same
period of last year, taking account of Easter effects. Orkla Brands is
compensating for the continuing rise in global raw material prices into 2011,
but there is a natural lag in impact. Further price increases are therefore
planned. Due to the late Easter this year, the effect of Easter sales will not
be seen until the second quarter.
The restructuring and merger of SladCo and Krupskaya to form Orkla Brands Russia
are expected to strengthen the competitiveness of the Russian operations. The
first-quarter results reflect one-off costs related to the restructuring
process, as well as higher input costs that have not been fully offset by price
increases.
Sapa achieved profit growth compared to the same period of last year, as well as
to the fourth quarter of 2010. Although the market for aluminium extrusions is
still significantly lower than levels in a normalised economic situation, the
results reflect an improvement in the US extrusion market, especially within the
transport segment. The market for Heat Transfer remains strong.
"Along with growth in Asia, a stronger US market is important for global growth
in the aluminium extrusion market. Efforts to reduce costs continue to be
intensified pending an improvement in the building and construction segment of
the European market," says Orkla President and CEO Bjørn M. Wiggen.
Borregaard has delivered very good first-quarter results. There is strong demand
for speciality cellulose and prices are high, and there is also good demand for
other products. The weak results reported by Hydro Power are due to low inflow
both in Sauda and to Borregaard's power plants. The Investment Portfolio
achieved a slightly higher return than the Nordic indices with which it is
compared.
Orkla took new steps in the first quarter towards focusing its operations. The
agreement with the Chinese company Bluestar on the sale of Elkem was completed
on 14 April. At the same time, Sapa acquired an extrusion business in India, and
entered into an agreement to establish production of aluminium extrusions for
rolling stock in a joint venture with China's largest aluminium company, Chalco.
Orkla Brands has signed an agreement to buy Rasoi Magic Foods, an Indian
manufacturer of spices and spice mixes.
"The sale of Elkem has laid an important part of the foundation for a stronger
focus on further investment in, and development of Orkla Brands and Sapa, both
operationally and structurally. The formation of a joint venture with Chalco is
a good example of this focus," points out Orkla President and CEO Bjørn M.
Wiggen.
Orkla ASA
Oslo, 5 May 2011
Ref.:
Senior VP Corporate Communications and Public Affairs
Johan Chr. Hovland
Telephone +47 22 54 44 86/+47 917 63 491
Senior VP Investor Relations
Rune Helland
Telephone +47 22 54 44 11
VP Investor Relations
Siv M. S. Brekke
Telephone +47 22 54 44 55/+47 930 56 093
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Presentation of 1st Quarter 2011:
http://hugin.info/111/R/1512623/448266.pdf
1st Quarter 2011:
http://hugin.info/111/R/1512623/448265.pdf
Quarterly and accounting figures 1st Quarter 2011:
http://hugin.info/111/R/1512623/448267.xls
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Orkla ASA via Thomson Reuters ONE
[HUG#1512623]
Latest directors dealings
- 9 minutes ago ASA International Group
- 1 hour ago Central Asia Metals
- 1 hour ago Orosur Mining Inc
- 1 hour ago Emv Capital
- 1 hour ago Power Probe PLC