Aluminium company Norsk Hydro’s (OSE: NHY) sales of 21.75 billion NOK were unchanged year-on-year during Q1 2012. The company blamed lower realized aluminium prices and weakness in European extrusion operations for its sliding profit numbers. Underlying EBIT of 557 million is half of last year’s level. Reported EPS of 0.25 NOK includes some unrealized derivatives gains. Underlying EPS is 0.13 NOK.
Sold production performance and strong Energy results were the positives. The company forecasts 2012 aluminium demand growth outside China to be round about 3%, barring any negative surprises from Europe. The company will continue to restructure and find other means to reduce costs. It has forward contracted 80% of expected Q2 primary aluminium production at around 2200 USD per Metric Ton. This leaves low double-digit EBITDA margin at current costs. The stock lost some ground on Friday.
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