Norsk Hydro: Aluminum Demand Outlook Is "Uncertain"

OSLO, Jul 22, 2008 (Dow Jones Commodities News via Comtex) --Norwegian aluminum company Norsk Hydro ASA (NHY) said Tuesday that the outlook for aluminum demand is "uncertain" as economic indicators point to weaker development in industrial production in the western world, while in China it remains strong. The company said in its second quarter results report that it expects to see a moderate market slowdown for semi-fabricated products in Europe, compounding seasonally lower demand which it said will impact business during the second half of 2008. The weak construction market, particularly in Southern Europe will be a primary drag on demand levels, it said. Meanwhile, in the U.S., Hydro said it expects the market for semi-fabricated products to remain at the current depressed levels. Hydro forecasts global consumption of primary aluminum will grow about 8% in 2008, and said it expects aluminum prices to "remain high due to increasing energy and raw material prices and energy supply uncertainties." The company reported a sharply lower net profit of 786 million Norwegian kroner ($155.4 million) in the second quarter of 2008 from NOK5.95 billion a year earlier on rising industry costs and a weaker U.S. dollar.