Norsk Hydro Posts Higher Q3 Profit

Norsk Hydro ASA

reported a surge in its third-quarter net profit. Norsk Hydro's quarterly net income jumped to 6665 million kroner, versus a year-ago profit of 321 million kroner. Its earnings per share climbed to 0.29 Kroner compared to 0.11 Kroner. Underlying earnings per share surged to 0.43 Kroner from 0.14 Kroner. Its underlying earnings before interest and taxes climbed to 1.49 billion kroner, from 659 million kroner a year earlier. However, analysts were estimating core earnings of 1.36 billion kroner. Its revenue climbed to 19.70 billion kroner versus 16.15 billion kroner. Analysts projected revenue of 18.29 billion kroner in the quarter. "All-in metal prices continued to rise in the quarter, reflecting the tighter market we saw in last quarter and the continuing market balance deficit," said President and CEO Svein Richard Brandtzæg. "Demand for aluminium is rising, and we now see demand growth of 3-4 percent in the world ex-China for 2014, helped by metal substitution in the automotive market." For 2014, Norsk Hydro projected global aluminium demand growth, excluding China, of 3% to 4%. Norsk Hydro shares gained 3.36% to close at $5.38 yesterday.