Norsk Hydro Swings To Profit In Q3 - Quick Facts

(RTTNews) - Norwegian aluminium producer Norsk Hydro (NHY, NHYDY.PK, NHYDY.PK) reported that its net income for the third quarter was 1.12 billion Norwegian Kroner or 0.53 Kroner per share, compared to net loss of 1.35 billion Kroner or 0.65 Kroner per share in the prior year.

The latest quarter's results include a net foreign exchange gain of 358 million Kroner, mainly reflecting the strengthening Norwegian kroner versus Euro, affecting liabilities in Euro in Norway and embedded currency derivatives in power contracts.

Underlying earnings per share were 0.46 Kroner per share, compared to 0.61 Kroner in the prior year. The company attributed the decline in underlying earnings to seasonally lower metal sales and negative currency effects, partly offset by higher realized aluminium prices.

Earnings before financial items and tax or EBIT declined 16 percent to 1.38 billion Kroner from 1.63 billion Kroner last year.

The reported EBIT for the latest quarter includes net unrealized derivative gains of 100 million Kroner and positive metal effects of 48 million Kroner. It also included a charge of 124 million Kroner related to the demolition of the Kurri Kurri site and an impairment charge of 140 million Kroner related to the decision to divest the Hannover site.

Further, EBIT includes a net gain of 15 million Kroner in Sapa, relating to unrealized derivative gains, rationalization charges and net foreign exchange gains.

Total revenue and income for the quarter declined 7 percent to 20.17 billion kroner from 21.59 billion Kroner in the prior year.

Looking ahead, the company affirmed its forecast for global aluminium demand growth of 4 percent to 5 percent for 2016 and said it expects to land in the higher range of this estimate for the full year.