Novelis Net Income For First Quarter Of FY 2022 Rises To US$303 MM

Novelis Net Income For First Quarter Of FY 2022 Rises To US$303 MM

Atlanta’s rolled aluminium firm Novelis released results for the first quarter of fiscal year 2022 this week. The firm reported a strong bounce back from coronavirus-related numbers of a year ago.

For the fiscal first quarter Novelis turned in a net income of US$303 million, an increase of 597 percent on the year. Net income from continuing operations excluding special items increased by over ten times on the year, from US$22 million in the previous first quarter to US$260 million in the just-ended quarter.

Shipments for the quarter rose by 26 percent on the year to 973 thousand metric tons. Adjusted EBITDA also rose last quarter, better by 119 percent on the year at US$555 million. Net sales rose by 59 percent, from US$2.4 billion last year to US$3.9 billion this year.

Novelis says current year beverage packaging and specialty products shipments rose due to an increase in market demand for the quarter. Also strong in the quarter were shipments of automotive products, though the sector was not as strong as it could have been owing to the current semiconductor chip shortage.

Steve Fisher, President and CEO of Novelis Inc., said that the positive results in the quarter are an outgrowth of the firm’s ongoing strategy to meet market demand.

“Our strategy to grow a diverse portfolio of sustainable aluminum products utilizing our leading geographic footprint to meet strong demand has again delivered outstanding results in the quarter. With new automotive capacity in the US and China now ramping up and the financial fortitude to continue to invest in growth opportunities aligned with our long-term carbon neutrality goals, we will further expand our leading position in delivering low-carbon, sustainable aluminum solutions across premium end markets worldwide.”

Novelis is a subsidiary of Mumbai’s Hindalco Industries Ltd. Based in Atlanta, the firm accounts for almost half of Hindalco’s consolidated revenue. The world’s largest recycler of aluminium, Novelis conducts operations in ten different countries, employs around eleven thousand people, and reported US$11.2 billion in net sales for the most recent fiscal year.