Oslo - The global financial crisis has affected the Norwegian aluminium and power generation group Norsk Hydro's third quarter sales and earnings, the group said Tuesday.

Third-quarter turnover was 23.98 billion kroner (3.65 billion dollars), down 9 per cent from the third quarter of 2007.

Underlying earnings before financial items and tax (EBIT) were down 8 per cent in the quarter to 1.49 billion kroner, the group said.

"The global financial crisis and uncertainty in world commodity markets have affected our results for the third quarter and will continue to do so in the coming quarters," Hydro Chief Executive Eivind Reiten said in a statement.

The company said it operated in a volatile market, noting that in July aluminium prices surged but prices have since been pushed down.

A stronger US dollar partly compensated for the lower prices, but in its foreccast the group expected lower demand in the automotive and construction industry in Europe, while activity in the US was predicted to be low.

A year ago, Hydro combined its gas and oil business with Norwegian rival Statoil to focus on its aluminium and power generation activities. (dpa)