Atlanta’s rolled and recycled aluminium firm Novelis Inc. released results for the second quarter of its fiscal year 2019 yesterday, turning in numbers largely down from the same period last year despite a rise in sales.
In the just-ended quarter, Novelis reported US$3,136 million in net sales, up from US$2,794 million over last fiscal year’s second quarter, driven by higher aluminium prices, higher shipment totals, and a better mix of product offerings. EBITDA for the quarter came to US$332 million, down from last year’s total of US$576 million, and adjusted EBITDA figured at US$355 million, up by 18 percent on the year. Pre-tax income for the quarter totaled US$180 million, down on the year from last year’s second-quarter total of US$423 million, and net income totaled US$116 million, off by US$191 million on the year.
For the first half of FY2019, Novelis turned in US$6,233 million in net sales, up from last year’s first-half total of US$5,463 million. EBITDA for the first half figured at US$671 million, off by US$201 million from last year, and adjusted EBITDA came to US$689 million, down from last year’s first-half total of US$591 million. Pre-tax income for the half totaled US$370 million, a drop of US$197 million from last year, and net income totaled US$253 million, down from US$408 million last year.
“Continued strong customer demand for lightweight, high-strength aluminum has resulted in another strong quarter,” commented Steve Fisher, President and CEO, Novelis Inc. “Moving forward, we are focusing on safely bringing our recent automotive investments online, enhancing the way we engage with customers and leveraging our R&D capabilities in order to provide solutions that help meet their design, performance and sustainability goals.”
“Our continued strong financial performance and operating cash flow generation has allowed us to strategically add capacity to capture growing demand, while continuing to improve net leverage to 2.8x at the end of the second quarter,” explained Devinder Ahuja, Senior Vice President and Chief Financial Officer for Novelis.
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$10 billion in revenue for the most recent fiscal year.