Automotive Aluminium Sales Drive Up Q1 Numbers for Novelis
08 August 2017 by Staff
Rolled and recycled aluminium firm Novelis Inc. released results for the first quarter of fiscal year 2018 yesterday, buoyed by robust operational performance and continued gains in the automotive sector.
The firm’s net sales totaled US$2.7 billion in the just-ended quarter, up from US$2.3 billion in the first quarter of FY 2017. Novelis credits a 4 percent rise in shipments of flat-rolled products and a 16 percent increase in higher-conversion premium automotive products.
Income before taxes totaled US$144 million also up year-on-year from last year’s total of US$60 million. Net income came to US$101 million, significantly up year-on-year from last year’s total of US$24 million. Novelis chalks up the increased net income to a higher EBITDA in the quarter and less spent on interest thanks to a debt refinancing in the previous fiscal year.
Net income from operating activities totaled US$101 million, up year-on-year from last Q1’s total of US$24 million. EBITDA for the quarter came to US$296 million, also better than last year’s first-quarter total of US$229 million. Adjusted EBITDA for the quarter totaled US$289 million an improvement from last year’s Q1 total of US$268 million. Novelis credits the rise to increased shipments, continuing improvements in operations, and a favorable product mix.
Steve Fisher, President and Chief Executive Officer for Novelis, credited its automotive sales for a strong showing in the quarter.
“Our automotive strategy, enhanced operational performance and strong customer relationships resulted in record first quarter shipments while also increasing Adjusted EBITDA per ton. Leveraging our unmatched global manufacturing footprint, innovative technology and closed-loop recycling systems, Novelis has become a preferred choice for automotive aluminum sheet. As more and more automakers turn to aluminum solutions to produce the next generation of vehicles, we are actively looking at opportunities to increase capacity to support our customers and reinforce our leadership position in this growing market.”
Going forward, Novelis expects to finish the current fiscal with an adjusted EBITDA of between US$1.10 billion and US$1.15 billion and free cash flow of between US$400 million and US$450 million.