Shanghai Metal Market
Hydro Warns of Softer Demand as Profit Lags Forecasts
Edited by : AL CIRCLE
1 min read
Norway's Norsk Hydro warned uncertain macro conditions could soften demand for aluminum as it posted a smaller-than-expected rise in third-quarter earnings on Thursday.
The firm stuck to its view that global demand for aluminum would rise by 7 percent in 2011, but said markets had weakened and that growth may come in on the low side.
"With current macro uncertainty, market visibility is low," Hydro's Chief Executive Svein Richard Brandtzæg said.
Hydro reported underlying July-September earnings before interest and taxes (EBIT) of 1.65 billion crowns ($297.7 million), up from the 1.23 billion crowns made in the same period last year but below the average forecast of 1.71 billion in a Reuters poll of analysts.
Revenue rose by 29 percent to 23.8 billion crowns, lagging analysts' estimates of 24.6 billion. The numbers include bauxite and alumina businesses acquired earlier this year.
The firm stuck to its view that global demand for aluminum would rise by 7 percent in 2011, but said markets had weakened and that growth may come in on the low side.
"With current macro uncertainty, market visibility is low," Hydro's Chief Executive Svein Richard Brandtzæg said.
Hydro reported underlying July-September earnings before interest and taxes (EBIT) of 1.65 billion crowns ($297.7 million), up from the 1.23 billion crowns made in the same period last year but below the average forecast of 1.71 billion in a Reuters poll of analysts.
Revenue rose by 29 percent to 23.8 billion crowns, lagging analysts' estimates of 24.6 billion. The numbers include bauxite and alumina businesses acquired earlier this year.
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