Sapa has delivered the strongest first quarter since the company was established in 2013.
The demand for lighter cars in both North America and Europe, resulting in aluminium substitution in the automotive industry, is contributing positively.
Owners Orkla and Hydro reported to the financial markets Sapa's results for the first quarter of 2016. Sapa continues to deliver strong results.
Underlying EBIT improved with 46% compared to the same quarter previous year to NOK 571 million. Performance improved across all business areas mainly due to the effects of the improvement programmes, increased share of higher margin business, positive currency effects from the weakening Norwegian krone against the US dollar and Euro and seasonally stronger demand. Total revenue for Q1 was NOK 13.905 million.
North America still driving growth
As a result of increased building and construction activity and strong demand from the automotive industry demand increased by 3% in North America compared with same quarter last year. Demand also grew marginally in Europe. A more healthy building and construction market contributed to this development.
Increased share of higher margin business
Demand for extruded products is expected to seasonally improve going into the second quarter of 2016, also compared to the second quarter of 2015. In both North America and Europe, aluminium substitution in the automotive industry is contributing positively.