Norsk Hydro expects Q2 results to drop

14 July 2008 10:01  [Source: ICIS news]

MUMBAI (ICIS news)--Underlying second quarter earnings before interest and tax (EBIT) could fall to around Norwegian kroner (NKr)1.6bn ($316m/€198m) from NKr2bn in the first quarter due to higher aluminium costs, Norsk Hydro said on Monday.

“The cost increases are mainly related to alumina prices, alumina freight, petroleum coke and other costs,” the Norwegian aluminium and energy firm added.

Reported EBIT would be hit by unrealised derivative effects relating to its long-term power sourcing contracts, Hydro said.

Stronger aluminium product business results were expected while the energy business would be negatively impacted by lower spot prices for electricity in Norway.

($1 = €0.63/NKr5.06)

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By: Aaron Rodrigues
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