As was mentioned in the beginning of the month, Norsk Hydro (OSE: NHY) took large one-off charges for Q4. The company decided to report earnings in a way that highlighted the underlying numbers (aka excluding the one-off items). These (EBIT: of 1133 million NOK, net income 876 million and EPS of 0.42; with the one-off charges the same numbers were -362 million, -749 million and -0.36) together with positive comments about the future of the industry and maintained growth expectations for aluminium demand in 2012 excluding China helped the stock to recover all of the ground lost earlier this month.
Fourth quarter is normally seasonally weak and metal prices and volumes were down as well. Sales were down 9% seasonally to 21.75 billion. Most of the decline was in Europe. Full-year sales were 91 444 million and in full-year numbers the effect of one-off items was reserves as a 4.3 billion gain from revaluations of Hydro’s previously held assets related to the Vale S.A.'s aluminium business acquisitions pushes up full-year numbers. Full-year underlying EPS is 1.89 NOK where as reported EPS is 3.41 NOK. The Board of Directors suggests a dividend of 0.75 NOK. Weekly close was at 32,51 NOK.
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