Hydro has announced second quarter 2010 results:
- NOK 1,110 million in second quarter underlying EBIT
- Solid demand in seasonally strong quarter
- Upstream improves on higher aluminium prices and alumina performance
- Downstream rises further with strong sales, firm margins and improved productivity
- Energy falls on significantly lower power production
- Qatalum ramp-up on schedule for full output in Q4, 48 percent of cells in operation end-Q2
- Takeover of Vale's aluminium business on track for Q4 closing
- NOK 10 billion rights offering successfully completed
- 2010 outlook for growth in Hydro's main markets unchanged at 12 percent
"The solid results are attributable to higher sales volumes, combined with firm margins and tight cost control in a seasonally strong quarter. This quarter confirms Hydro as a strong market performer," Hydro's President and Chief Executive Officer Svein Richard Brandtzæg said. "Full output at Qatalum and closing of the takeover of Vale's aluminium business are expected in the fourth quarter. Combined, these moves will strengthen Hydro in all parts of the value chain and make us an even more robust player in an industry poised for growth," said Brandtzæg.
Underlying results for Primary Metal improved during the quarter compared to the first quarter, due to higher realized aluminium prices. Hydro's alumina and raw materials business showed improved underlying results, mainly due to the Alunorte alumina refinery which posted higher sales volumes as a result of more stable production. Variable costs increased for Hydro's smelter operations during the quarter.