“I am happy to see our 2.9 billion Better ambition launched last year is progressing according to plan, contributing to our first-quartile position on the global cost curves. This is underpinned by continued high production in Bauxite & Alumina, as well as stronger performance in our primary aluminium joint ventures,” says Brandtzæg.
Underlying EBIT for Primary Metal declined in the first quarter due to lower realized prices, higher fixed costs and additional cost related to ICMS tax on sales of surplus power in Brazil in the previous periods. This was partly offset by a stronger USD, a decline in alumina costs and positive effects on premiums in Qatalum following a negative time lag adjustment in the fourth quarter of 2015.
Underlying EBIT for Metal Markets increased somewhat in the first quarter mainly due to positive currency effects and improved results in remelters. This was partly offset by weaker results from sourcing and trading activities.
Adjusted for the divestment of the Slim rolling mill, sales volumes were seasonally higher in Rolled Products in the first quarter. This together with reduced alumina cost for the Neuss smelter, supported improved profitability compared to the fourth quarter of 2015. Reduced net margins partly offset the positive effects.
