Profit warning for 4th quarter 2001 results
Norsk Hydro ASA announced on Monday consequences for its fourth quarter 2001 results.
When releasing its third quarter 2001 results, Hydro announced costs in connection with the closure of its Magnesium plant in Porsgrunn, Norway of approximately NOK 700-800 million. The costs were expected to be charged in the fourth quarter 2001 and the first half 2002. The estimated costs in connection with the closure is maintained, and the costs charged to the fourth quarter results represents approximately NOK 700 million.
The entire Light Metals business area has had a challenging fourth quarter. The weak aluminium market, in particular in the market for extruded products and deliveries to the car industry, has weakened the result. The quarterly result will also be charged with one-time effects of approximately 400 million NOK in addition to costs related to the closure of the Magnesium plant. In sum Hydro Light Metals expect to report a total negative operating income for the fourth quarter 2001 of approximately NOK 1 billion.
The operating income for Hydro Petrochemicals will in the fourth quarter be charged with demolition and cleanup costs of NOK 75 million, and redundancy provisions of approximately NOK 50 million.