Hydro reports strong earnings in Q1

Citing high aluminum prices and increased volumes in its extrusions business, Norway-based Norsk Hydro ASA says it posted first-quarter 2021 underlying earnings before interest, taxes, depreciation and amortization (EBITDA) of $630 million. That figure is up 36 percent from the $460 million earned in the first quarter of 2020.

“Strong global economic recovery boosted demand for renewable energy, aluminum and aluminum products,” states the company, adding that its Hydro Extrusions business area reported record quarterly results.

While the company was able to sell its finished and semifinished metal products for a higher price, it also says, “These positive elements were partly offset by higher raw material costs, negative currency effects and additional maintenance-related costs in the Bauxite & Alumina business area.”

Hydro President and CEO Hilde Merete Aasheim states, “I am pleased to see earnings and returns picking up across most of our operations on higher margins and volumes, but also on continued low costs, especially in extrusions.”

The first quarter saw what Hydro calls “a strong global recovery driven by the reopening of economies and substantial fiscal stimulus.” The “record results” of Hydro Extrusions were driven by strong volume growth, improved margins and continued cost savings from improvement program initiatives, the company says.

The quarter saw a strong rebound in automotive sector demand in Europe and solid growth in the industrial segment, as well as residential building and construction sector demand for aluminum. Hydro says it continues to pursue a strategic direction toward 2025 that includes a goal to strengthen its position in low-carbon aluminum.

Hydro has a manufacturing or processing presence in more than 40 nations and says on its website it has more employees in the United States than any other Norwegian company. The firm’s extrusions business unit has more than 20 manufacturing locations in the U.S.