Business News
Aluminium group Norsk Hydro hit by global financial crisis
Feb 18, 2009, 6:12 GMT
Oslo - The global financial crisis affected Norwegian aluminium and power generation group Norsk Hydro that Wednesday posted a loss for fourth-quarter 2008.
The group reported a loss before financial items and tax (EBIT) of 3.1 billion kroner (444 million dollars) and underlying earnings before EBIT dropped to 868 million kroner, including inventory write- downs of 700 million kroner.
Fourth-quarter turnover was 21.36 billion kroner, down 1 per cent from the fourth quarter of 2007.
'We have a very demanding year ahead of us, and we will continue to take proactive measures to meet the unprecedented market conditions,' Hydro Chief Executive Eivind Reiten said in a statement.
In Neuss, Germany, the group was to 'temporarily' shut down its electrolysis production while cast-house operations were to continue, Norsk Hydro said, noting that 'production cost at Neuss is significantly higher than our average smelter costs due to high power prices in Germany.'
During the first-quarter 2009, the group was to shut down its Soderberg line at its Norwegian Karmoy plant.
In 2007, Hydro combined its gas and oil business with Norwegian rival Statoil to focus on its aluminium and power generation activities.
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