Adds analyst, element OSLO, Oct 23 (Reuters) - Norwegian al
Adds analyst, element
OSLO, Oct 23 (Reuters) – Norwegian aluminium maker Norsk Hydro NHY.OL posted a shock rise in third-quarter working income on Friday and mentioned its markets had been recovering from the autumn in demand seen within the second quarter.
Its Extruded unit, which makes merchandise for development and different trade, noticed a quicker than anticipated restoration, particularly in Europe, and was boosted by decrease uncooked materials prices and stuck prices in addition to optimistic foreign money results, Hydro mentioned.
“It is a robust outcome pushed primarily by the downstream extruded enterprise,” Credit score Suisse mentioned in a observe. “With the beat in that division on prices somewhat than volumes in Q3, this definitely gives inexperienced shoots for a restoration into 2021 as volumes proceed to enhance.”
Underlying earnings earlier than curiosity and tax (EBIT) rose to 1.41 billion Norwegian crowns ($152 million) within the July to September interval, from 1.37 billion crowns a yr earlier, beating the 278 million crowns anticipated in a ballot of analysts.
The quarterly outcome was additionally positively impacted by an insurance coverage cost of 192 million crowns this yr following a 2019 cyberattack in addition to 64 million crowns in authorities grants.
Hydro mentioned the worldwide restoration from the influence of the coronavirus is decreasing oversupply of aluminium, which is utilized in a spread of merchandise and purposes comparable to development, automobiles and soda cans.
Whereas aluminium costs have recovered from the four-year lows hit in March, shares in Norsk Hydro are nonetheless down 20% for the reason that begin of the yr.
($1 = 9.2730 Norwegian crowns)
(Reporting by Terje Solsvik and Victoria Klesty; Modifying by Christian Schmollinger)
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