One of Norway’s largest industrial firms, Norsk Hydro, is feeling the pain of the euro crisis after suffering major losses in the second quarter. Management is warning that more cuts will be necessary throughout the year.
Hydro’s chief executive Svein Richard Brandtzæg noted that the weak economy in Hydro’s most important markets in Europe has led to low prices for Hydro’s aluminum and the poor second-quarter results. Brandtzæg also expects a “very weak” third quarter.
“The positive is that we see continued potential for improvements,” Brandtzæg told newspaper Dagens Næringsliv (DN). He also claimed that Hydro still has “a strong financial position and a strong position in the market, and we have an organization with very clever employees who contribute every single day to improvements.”
Much of the cost-cutting was targeted at Hydro’s operations in Brazil, where it produces bauxite for aluminum. Cuts will also be made at Hydro’s aluminium plants.
Views and News staff