Orkla eyes Q4 core loss for Sapa unit

OSLO, Dec 23 (Reuters) - Norwegian conglomerate Orkla (ORK.OL) said on Tuesday its Swedish aluminium extrusion business Sapa is expected to post a core loss of 150 million crowns ($21 million) in the fourth quarter, not including writedowns and provisions. Orkla late on Monday had announced it was swapping its 50 percent stake in smelting business Elkem Aluminium for the 45 percent of Sapa owned by Alcoa Inc (AA.N). After the deal Orkla will own 100 percent of Sapa, which it says is the world's largest company in the field of processed aluminium solutions. [nN22515649] Orkla said Sapa was seeing a "negative profit trend" during the fourth quarter as a result of the credit crunch and dropping end-user demand due to stunned global growth. Sapa is seen posting earnings before interest, tax and amortisation of 650 million crowns for all of 2008, including the 150 million fourth-quarter loss. "Owing to a significant decline in aluminium prices, over and above this the Sapa Group will take writedowns for accounting purposes on the value of its stock, estimated at 300-400 million crowns," Orkla said in a statement. It said that Sapa had cut 15 percent of its workforce in 2008 and that further structural measures and downsizing would be carried out next year. "It is also expected that a provision of about 200 million crowns for new restructuring measures will be recognised in the fourth quarter," it said.