24 OCTOBER 2013www.mineweb.com
Norsk Hydro earnings beat forecasts
Edited by : AL CIRCLE
2 min read
Norsk Hydro, one of the world's biggest aluminium makers, said its July-September core earnings rose more than expected thanks to solid performance at its primary aluminium and power production divisions.
At the same time, Hydro adjusted its 2013 forecast for global primary aluminium demand growth, excluding China, to 2 percent from previously 2-4 percent.
Benchmark aluminium prices are down 10 percent in 2013 to around $1,870 per tonne, but cost cuts and high premiums on physical deliveries of the metal have helped boost results at Hydro.
"I'm pleased to report that we are on track to deliver the $300 per tonne cost improvements for our fully-owned smelters by the end of 2013, contributing to a more robust cost position and bottom line," Chief Executive Svein Richard Brandtzaeg said.
The Norwegian firm's underlying operating profit came in at 659 million Norwegian crowns ($111.82 million) against expectations for 306 million crowns on average in a Reuters poll. At the same time last year, the firm reported a profit of 16 million crowns.
The company's key primary aluminium unit earned 337 million crowns in the quarter, up from a loss of 4 million a year ago, while analysts had expected the division to earn 102 million. ($1 = 5.8935 Norwegian krones)
At the same time, Hydro adjusted its 2013 forecast for global primary aluminium demand growth, excluding China, to 2 percent from previously 2-4 percent.
Benchmark aluminium prices are down 10 percent in 2013 to around $1,870 per tonne, but cost cuts and high premiums on physical deliveries of the metal have helped boost results at Hydro.
"I'm pleased to report that we are on track to deliver the $300 per tonne cost improvements for our fully-owned smelters by the end of 2013, contributing to a more robust cost position and bottom line," Chief Executive Svein Richard Brandtzaeg said.
The Norwegian firm's underlying operating profit came in at 659 million Norwegian crowns ($111.82 million) against expectations for 306 million crowns on average in a Reuters poll. At the same time last year, the firm reported a profit of 16 million crowns.
The company's key primary aluminium unit earned 337 million crowns in the quarter, up from a loss of 4 million a year ago, while analysts had expected the division to earn 102 million. ($1 = 5.8935 Norwegian krones)
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