Norsk Hydro calls result and market situation weak

Low aluminium prices and a challenging macro-economic market is leading to more measures including capacity adjustments and operational measures to be started by Norsk Hydro (OSE: NHY). Second quarter revenue of 21.6 billion was down by a percent sequentially even though it tends to be the opposite. Underlying earnings came in at 549 million and reported EBIT at -720 million reflecting a near 1.2 billion charge on the expected decision of closure of remaining production at Kurri Kurri just months after one production line was discontinued. The company expects around 2% aluminium demand growth ex-China in 2012.