Norwegian aluminum group Norsk Hydro says Q2 profit more than doubled on rebounding market

Norsk Hydro Q2 profit more than doubles

OSLO, Norway — Norwegian aluminum producer Norsk Hydro ASA on Tuesday posted a more than doubled second-quarter net profit, citing higher aluminum prices and increased sales.

The company reported a profit of 503 million kroner ($81.6 million), up from 211 million kroner the year before. Quarterly revenue rose to 19.8 billion kroner from 17.6 billion kroner in 2009.

Norsk Hydro shares closed down 2 percent, at 34.20 kroner ($5.57), on the Oslo Stock Exchange.

Hydro Chief Executive Officer Svein Richard Brandtzaeg called the result “solid” and said higher aluminum prices and greater sales volumes were behind the result, as the aluminum market rebounds from a slump during the global financial crunch.

The company, based in Oslo, gave an optimistic outlook, saying it expected continued growth through the end of the year.

Brandtzaeg said the company expects to close a $4.9 billion deal — announced in May — to buy the majority of Brazilian mining company Vale S.A.’s aluminum operations in the fourth quarter of 2010. He said the deal will “strengthen Hydro in all parts of the value chain” and will increase the company’s role as a “robust player” in the aluminum industry.

Hydro employs 25,000 people in 30 countries.