"Based on ambitious and effective improvement efforts in 2011, Hydro is entering into 2012 with a robust financial and operational platform. Fourth-quarter results reflect weaker markets and a drop in demand for aluminium and aluminium products, especially in Europe, where we clearly need to continue our restructuring efforts," Hydro's President and CEO Svein Richard Brandtzæg said. "We have taken swift measures to improve operations, and we are prepared for further corrective measures. We maintain our expectation of 3-5 percent growth in aluminium demand for 2012 outside China despite a weak macro-economic situation and short-term challenges, however the long-term fundamentals for the aluminium industry remain positive," Brandtzæg said. Due to the deteriorating market conditions and cost pressures, Hydro wrote down fixed assets by NOK 1.3 billion in the quarter. These charges are excluded from underlying results. Underlying EBIT for Bauxite & Alumina declined compared to the third quarter primarily due to lower LME linked alumina prices. Bauxite production reached record levels during the quarter as a result of improved operational stability. For Primary Metal lower realized aluminium prices, lower premiums and reduced sales volumes impacted underlying EBIT in the fourth quarter. Production volumes increased mainly due to additional volumes from Qatalum. Hydro's midstream operations incurred an underlying loss for the quarter due to significant negative currency effects. Underlying EBIT excluding currency effects declined somewhat, influenced by lower results from sourcing and trading activities. Underlying EBIT for Hydro's downstream business deteriorated from the third quarter result, impacted by seasonal declines and weak market developments, in particular for our European extrusion business. Energy delivered solid underlying results for the quarter with continued high production despite declining somewhat compared to the third quarter. Responding to market developments, Hydro has reduced remelt production and strengthened its focus on improvement programs and financial discipline. Cost and other improvements in Primary Metal amounted to roughly NOK 1 billion in 2011 compared to 2009 operating cost levels. In January 2012, Hydro decided to curtail 60,000 mt of annual production capacity at its Kurri Kurri aluminium smelter which has been negatively impacted by low aluminium prices, increased raw material costs and the strong Australian dollar. Further production efficiency and cost reduction initiatives have been implemented across Hydro's downstream operations. This includes measures to turn around our Building Systems business targeting annual cost improvements of EUR 40 million by the end of 2012 compared to 2010.
The international journal for industry, research and application of aluminium is published monthly. It provides information on all topical issues concerning the material, its production, processing, recycling and application. Furthermore, economic topics and ecological consequences of aluminium application are discussed. Thirty percent of all articles in the journal are written in English.
The trade journal is the leading title in the whole German-speaking area. It provides information on material-specific characteristics of aluminium, latest processing technologies and innovative applications in various branches and sectors of industry.
The international trade journal for metallurgy focuses on the non-metal branch with its basic metals copper, zink, aluminium, magnesium, lead, nickel and tin as well as composite materials on metallic basis and special metals. The trade journal provides information on installation engineering and testing technology, introduces latest material developments and reports on user experiences.
