Norwegian aluminum producer Norsk Hydro ASA said it suffered a 5.85 billion kroner ($830 million) net loss in the fourth quarter of 2008 after it was stung by an «unprecedented» drop in market prices, currency exchange shifts and write-downs, AP reported. For the same October through December period of 2007 the Oslo-based company had a 527 million kroner profit. For the third quarter of 20080, it had a net profit of 233 million kroner. «Hydro has acted quickly and decisively in response to the unprecedented drop in aluminum markets toward the end of last year,» said President and Chief Executive Eivind Reiten said. «We have a very demanding year ahead of us, and we will continue to take proactive measures to meet the unprecedented market conditions.» Norsk Hydro had warned in January of the losses. Its shares fell 1.35 percent to 25.65 kroner Wednesday, in line with a general decline on the Oslo bourse's all-shares index in morning trading. Aluminum prices have fallen sharply in the past year, while stockpiles have built up due to declining demand amid the world economic slowdown. Hydro has already announced it was shutting down about 23 percent of its production in the first and second quarters of 2009. The company said sales declined 1.3 percent to 21.37 billion kroner ($3.03 billion) in the fourth quarter from year earlier. It said net earnings were pulled down by a fourth quarter foreign currency exchange loss of 4.6 billion kroner, due largely to the euro and the dollar strengthening against the Norwegian krone. There were also inventory write-downs of roughly 700 million kroner during the quarter. Norsk Hydro is a global aluminum producer, with a staff of about 25,000 people in more than 30 countries.
