Norsk Hydro Business report FY2008

Business Highlights

Financial Overview (in NOK million)
  FY2008 FY2007 Rate of
change (%)
Revenues 88,643 94,316 (6.0) -
EBIT 6,009 10,153 (40.8) -

-Revenue for Automotive

4,728 6,506 (27.3) 1)
-EBIT for Automotive (326) (67) - 2)

-Operating revenues for the automotive business declined in 2008 due to significantly lower volumes and declining margins.

-Significantly lower volumes also impacted underlying results for 2008 compared to the previous year in addition to costs related to start-up activities for new product lines in the automotive structures business as well as costs for reducing capacity to align its operations to current market conditions. 

Automotive sales volumes (1,000 tons to market)
  FY2008 FY2007 FY2006
Precision Tubing 68 73 66
Structures 37 44 36
Total 105 117 102


R&D Structure
Norway with branches in :
-Oslo, Norway
-Munich, Germany
-Louviers, France
-Tonder, Denmark
-Worcester, England
-Michigan, USA

-The Company is starting to work on the new technology center in Ardal, Norway. The investments is in the order of NOK 200 million, and the center is scheduled to open in 2007. (From a press release on Jun. 15, 2006)

Investment Activities

Overseas Investment
-The Company's Extrusion Americas unit expanded its production capabilities and capacity at its facility in Guaymas, Mexico. Two new CNC lathes and a cutoff machine allow the plant to produce custom-fabricated parts for industries such as automotive and alternative power generation. The cutoff machine had increased the Company's output from 150 to 600 pieces per hour for an automobile engine mount used by one of the Big Three Detroit automakers. (From a press release on Jul 10, 2008)