Hydro¡¯s Q3 underlying EBIT down by 4% on lower aluminium and alumina prices; EBIT for primary aluminium drops

Hydro reported an underlying EBIT of NOK 1,366 million in the third quarter of 2019, down from NOK 2,676 million in the third quarter of 2018. The decline was due to lower aluminium and alumina prices, partly offset by lower raw material costs and positive effects from higher production in Brazil.

President and CEO Hilde Merete Aasheim said, “It is encouraging to see costs coming down in our upstream business, combined with forceful restructuring and optimization measures downstream. Amid challenging markets, it is more important than ever to focus our efforts on what we control ourselves. I am therefore pleased to report progress on our new and ambitious improvement programs, which is an important enabler for our profitability and sustainability agenda.”

Underlying EBIT for Primary Metal dropped from positive NOK 861 million to negative NOK 39 million in Q3 2019. The result was attributed to “lower all-in metal prices and lower earnings on power sales in Brazil, somewhat offset by lower raw material cost and positive currency effects.”

Underlying EBIT for Metal Markets increased from negative NOK 3 million in Q3 2018 to positive NOK 362 million in Q3 2019.

Underlying EBIT for Rolled Products stood at NOK 166 million in Q3 2019, compared to NOK 82 million in Q3 2018. “The result from the rolling mills was stable, positive currency effects were offset by inflationary cost increases and depreciation. The Neuss smelter result increased driven by lower raw material costs and insurance compensation partly offset by lower all-in metal prices.”

Underlying EBIT for Extruded Solutions increased to NOK 559 million in Q3 2019. Higher margins were partly offset by increased costs and lower volumes mainly due to the softening market.

The financial impact of the cyberattack is estimated to around NOK 550-650 million in the first half year with limited financial effects for the third quarter.

EBIT totalled NOK 222 million in Q3 2019, from NOK 2,057 million in Q3 2018.

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