Atlanta’s rolled and recycled aluminium firm Novelis Inc. released financial results for the final quarter and full year of fiscal 2019 yesterday. The firm reported some of the strongest financial gains of its history for the fiscal year.
In the just-ended quarter Novelis sold US$3.084 billion in product, up slightly on the year from last fiscal year’s fourth-quarter total of US$3.066 billion. Net income for the quarter totaled US$103 million, off by $6 million on the year. The firm credits higher shipments in the quarter for the rise in sales, though lower average aluminium prices blunted further gains.
Adjusted EBITDA in the fourth quarter totaled US$357 million, up 13 percent on the year from last fiscal year’s fourth-quarter adjusted EBITDA of US$319 million. Higher shipment totals, a better mix of products, and favorable metal costs help to boost that metric.
For the fiscal year Novelis reported sales of US$12.326 billion, an 8-percent improvement over the prior year’s sales total of US$11.462 billion. The firm credits higher average aluminium prices and a 3-percent increase in flat-rolled aluminium products on the year.
The year’s net income totaled US$434 million, down from last fiscal year’s net income of US$622 million. Adjusted EBITDA totaled US$1.368 billion, an improvement on the year from last fiscal’s adjusted EBITDA of US$1.215 million, which Novelis chalks up to higher shipments, a better mix of products, and favorable metal costs. A drop in can sheet aluminium prices robbed the firm of higher gains, however.
Steve Fisher, President and Chief Executive Officer, Novelis, Inc., noted the progress his company made both financially and in aluminium innovation.
“Our year-end financial results are the best in company history, reflecting a continued focus on further improving operational efficiencies and customer centricity. It was also an important year in innovation, with the introduction of the first aluminum sheet battery enclosure, establishment of Customer Solution Centers and the development of new, high-strength alloys that will further enhance our existing portfolio of Advanz automotive products. We are also continuing to deliver on our purpose of shaping a sustainable world by increasing the amount of recycled content in our products, reducing CO2 emissions across the supply chain and maximizing the advantages of sustainable, lightweight aluminum to benefit our customers, partners and the communities where we live and work.”
“Our record operational and financial performance in fiscal 2019, including a reduction in net leverage to 2.5x, has firmly positioned Novelis to embark on our next phase of growth,” commented Novelis’ Senior Vice President and Chief Financial Officer Devinder Ahuja. “Long term customer demand across end markets continues to steadily grow, our operations are running very well, and we continue to generate strong cash flow to fund strategic investments for our future.”