Norsk Hydro’s Core Profit Surges 76% in First Quarter

Norsk Hydro, a Norwegian aluminum manufacturer, announced a substantial 76% increase in its first-quarter core profit on Tuesday. This surge was primarily driven by increased prices for both aluminum and alumina, coupled with favorable currency fluctuations. However, the company has adjusted its outlook for the extrusions segment due to a softening in downstream demand.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached 9.52 billion Norwegian crowns ($918.6 million) during the period from January to March. This represents a significant increase from the 5.41 billion crowns reported in the corresponding period last year.

Impact of Raw Material Prices
  • The rise in aluminum prices was influenced by record-high raw material costs.

Despite this impressive growth, the company’s core profit fell slightly short of analyst expectations. A consensus compiled by the company had projected a core profit of 9.86 billion crowns.