Hydro Annual Report 2011b

90
FINANCIAL AND OPERATING PERFORMANCE
Metal Markets
7) from April 2010
Developments in underlying EBIT for Metal Markets in 2011 were heavily influenced by net positive currency and inventory
valuation effects compared with significant net negative effects for 2010. Underlying EBIT excluding these items declined,
impacted by a lower contribution from our sourcing and trading activities. Results for our remelt operations improved
somewhat for the year.
Total metal product sales improved compared with 2010, mainly due to the inclusion of Albras casthouse volumes from March
1, 2011 and increased volumes from Qatalum. The positive effects were partly offset by lower extrusion ingot and sheet ingot
sales volumes in Europe due to weaker markets.
Our remelt operations delivered improved results in 2011 despite slightly lower production volumes. Volumes for our U.S.
plants were fairly stable compared to the previous years while our European plants were impacted by declining demand in the
second half of 2011 in particular. Improved margins, however, more than offset the negative effects of the volume decline.
Operating results from our sourcing and trading activities declined in 2011. Margins improved for our physical standard ingot
trading operations but were more than offset by weaker LME trading results compared to the strong performance in the prior
year.
Rolled Products
Operational and financial information
Year
2011
Year
2010
% change
prior year
Underlying EBIT (NOK million) 673 864 (22) %
Underlying EBITDA (NOK million) 1 126 1 318 (15) %
Sales volumes to external market (kmt) 929 945 (2) %
Sales volumes to external markets (kmt) ­ Customer business units
Foil 121 129 (6) %
Can beverage 188 177 6 %
Other packaging and building 85 89 (4) %
Automotive, heat exchanger 134 122 10 %
General engineering 236 259 (9) %
Lithography 165 169 (2) %
Rolled Products 929 945 (2) %
Rolled Products production sites
Volumes to external market (kmt) Location
Year
2011
Year
2010
% change
prior year
Grevenbroich / 50% share in Alunorf Germany 578 569 2 %
Hamburg Germany 132 143 (8) %
Slim Italy 57 60 (5) %
Malaysia (99.7% share) Malaysia 14 17 (18) %
Karmøy Norway 58 67 (13) %
Holmestrand Norway 89 90 (1) %
Total, excluding internal sales 929 945 (2) %
Underlying EBIT for Rolled Products declined in 2011 compared to the record results achieved in the previous year, mainly
due to lower sales volumes and somewhat higher operating costs.