Novelis Net Income Jumps 186% In The Fourth Quarter Of FY 2020

Novelis Net Income Jumps 186% In The Fourth Quarter Of FY 2020

Atlanta’s rolled aluminium firm Novelis reported financial and production results for the fourth quarter and full year of 2021 on Wednesday.

For 2020s fourth quarter Novelis recorded a 186-percent jump in net income on the year to US$180 million. Net income from continuing operations less special items rose 12 percent on 2019’s fourth quarter to US$172 million. Fourth quarter adjusted EBITDA rose to US$505 million, better by 32 percent on the year. Novelis credits the increase to Aleris’s acquisition and record demand for both automotive and beverage can rolled aluminium.

Net sales rose for the year ending on March 30 to US$12.3 billion, better by 9 percent than 2019. Flat-rolled product shipments increased to 3,613 kilotons, while adjusted EBITDA for the year rose by US$200 million to US$1.7 billion. The firm credits the acquisition of Aleris, favorable metal benefits, and good cost control for the rise.

Steve Fisher, President and CEO, Novelis Inc., elaborated upon the periods’ positive results in a press release.

“Guided by our purpose and driven by the resilience of our people and the strength of our partnerships, we safely navigated this extraordinary year to achieve outstanding results. With the ongoing successful integration of Aleris, a diverse and innovative product portfolio, and unmatched geographic footprint, we have proven our ability to deliver sustainable aluminum solutions to customers in a way that resulted in record financial performance. Looking forward we will continue to pursue growth opportunities through organic investment, while working towards creating a more sustainable and circular future for our business, industry, and society.”

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.