Feb 18, 2009, 12:11 GMT
Oslo - Norwegian aluminium and power group Norsk Hydro on Wednesday posted a loss for the fourth-quarter of 2008, citing 'unprecedented' plunges in the price of aluminium.
The firm reported a loss before financial items and tax of 3.1 billion kroner (444 million dollars), with underlying earnings dropping 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.
That fourth-quarter drop was 'much stronger than seasonal changes,' outgoing Hydro Chief Executive Eivind Reiten told analysts.
Aluminium traded at 2,446 dollars per ton at the end of September but at the year-end had been pushed down to 1,497 dollars per tonne.
Norsk Hydro said the price drop was 'unprecedented in the history of the aluminium industry.'
'We have a very demanding year ahead of us, and we will continue to take proactive measures to meet the unprecedented market conditions,' Reiten added.
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.
The board said it suggested that no dividend be paid for 2008. The group's share price was down 2.5 per cent at noon.
Reiten is shortly to be succeeded by Svein Richard Brandtzaeg as chief executive.
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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