Norwegian aluminum group Norsk Hydro reports return to Q1 profit on improving market

Norsk Hydro reports 1st quarter profit

OSLO — Norwegian aluminum producer Norsk Hydro ASA reported Tuesday a first-quarter net profit of 924 million kroner ($157.1 million) due to an increase in aluminum prices and demand.

That compared with a loss of 280 million kroner a year earlier.

Quarterly revenue jumped to 18.15 billion kroner ($3.1 billion) from 16.57 billion kroner in 2009.

Hydro shares rose 3.5 percent, to 48.65 kroner ($8.27), in morning trading in Oslo.

Hydro Chief Executive Officer Svein Richard Brandtzaeg said the gradual recovery of the aluminum market — in particular higher prices and higher global demand — was behind the result.

He also credited cost-cutting measures with improving the company’s financial situation. Since the middle of 2008, Hydro has laid off about 4,500 employees.

The company gave its first optimistic outlook since the global economic crisis crippled the aluminum market in the fall of 2008. Hydro noted that although demand remained low in the U.S. and Europe, it appeared likely to grow over the course of 2010.

Still, Brandtzaeg cautioned that “challenging terrain” lay ahead as the concern navigates the market resurgence. He also warned that the company may continue to trim its operations, noting that “we will maintain a strong cost focus across our business.”

Hydro employs 25,000 people in 30 countries.