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Strong improvement by Sapa in Q2

Sapa's underlying EBIT result increased significantly in the second quarter of this year, compared to the same quarter of 2015. Earnings improved in all business areas.

The progress was driven by positive effects from improvement programs, an increased share of value-adding products, and positive market developments. In Q2 2015, results were negatively influenced by sharply falling metal premiums in North America.

Underlying EBIT for the first half of 2016 also improved compared with the same period in 2015, influenced by the same factors.

Market demand increased by 2.5 percent in North America and 1.5 percent in Europe, compared to the same period last year. In North America, building and construction activity and automotive demand contributed positively. There also were positive developments in automotive and transportation in Europe, but a mixed picture in building and construction.

Continued moderate market growth is expected in Europe going forward, while certain market segments in North America are showing indications of flattening out. In both North America and Europe, aluminium substitution in the automotive industry is contributing positively.

Development from previous quarter

Compared to Q1 2016, underlying EBIT for Sapa increased, mainly due to seasonally higher market demand and stronger margins.

Compared to the previous quarter, market demand for extruded products in Europe and North America increased by 4.5 percent and 3 percent, respectively, driven by seasonality. The second quarter is a seasonally strong quarter, and demand traditionally decreases in the third quarter.