UPDATE 2-Norsk Hydro Q3 lags fcast, short-term view gloomy

* Q3 operating loss of 793 mln crowns, missing all fcasts

* Sells automotive structures business to German Benteler

* To consider additional restructuring as markets weak

* Shares down 1.8 pct, underperforming bourse

(Adds details, analyst and company comments, share price)

By Aasa Christine Stoltz

OSLO, Oct 27 (Reuters) - Aluminium producer Norsk Hydro (NHY.OL) gave a still gloomy short-term market outlook after posting a larger than expected third-quarter loss, hit by low prices, frail global growth and a weak U.S. dollar.

Hydro, a global supplier of aluminium and aluminium products, has seen profit fall sharply as the global economic crisis weighs on demand for aluminium and, in turn, prices.

Stocks of the strong, light metal are building up and supply is outpacing demand, a situation expected to worsen as China restarts capacity and curbs imports, prompting Hydro to consider additional restructuring measures.

"The crisis is not over," Chief Executive Officer Svein Richard Brandtzaeg told a presentation. "We remain cautious about the outlook for global aluminium demand and are concerned about the weakening U.S. dollar," Brandtzaeg said.

Norsk Hydro made an underlying operating loss of 793 million Norwegian crowns ($143 million) for the quarter, after a 1.5 billion crown profit a year ago, and lagging analysts' average loss forecast of 351 million crowns in a Reuters poll.

"Hydro expects a continued weak result in the fourth quarter of 2009," the group said.

The company's shares fell as much as 3.8 percent and were down 1.8 percent at 39.90 crowns against a 0.8 percent rise on the Oslo bourse .OSEBX. Analyst Eivind Bergkaasa at Arctic Securities said disappointing results and careful outlook weighed on the share.

Brandtzaeg said the situation also opened the door for opportunities, and he did not rule out acquisitions, but was focused on adjusting to the current market situation. He said he was optimistic on the long-term view of the aluminium market.

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