Atlanta’s rolled and recycled aluminium firm Novelis Inc. reported results for the first quarter of fiscal year 2020 yesterday. Favorable market conditions helped propel the firm to a strong showing in the quarter.
For the just-ended quarter Novelis reported net sales of US$2,925 million, down on the year from last year’s first-quarter sales total of US$3,097 million. The firm attributes the decline to lower average aluminium prices and local market premiums, but higher total shipments and more favorable product and price mixes helped blunt the blow.
Income before taxes in the quarter was level at US$190 million, but a US$10 million higher income tax provision dropped net income to US$127 million in the first quarter.
Adjusted EBITDA in the quarter rose from US$334 million last year to US$372 million in the latest quarter. The 11-percent bump was due to higher shipments combined with a favorable price and product mix.
Shipments of rolled aluminium products in the quarter totaled 830 thousand metric tons, up by 4 percent on the year. North American operations shipped 289 thousand metric tons, European plants delivered 234 thousand metric tons, Asian operations pitched in another 184 thousand metric tons, and South American mills sent out 139 thousand metric tons.
Steve Fisher, President and CEO, Novelis Inc., outlined the reasons for his firm’s results in the quarter.
“Novelis’ continued success is based on its ability to deliver high-quality products to customers and its focus on optimizing manufacturing operations. With a strong balance sheet and commitment to sustainable innovation, we are well positioned to make strategic investments in capacity as well as R&D to meet growing demand for lightweight aluminum solutions.”
“Our strategic capital projects to increase rolling, recycling and finishing capacity continue to progress on time and on budget,” elaborated Senior VP and CEO Devinder Ahuja. “Our focus on continuous operational improvement to fully leverage our existing capacity will allow us to continue to deliver strong results in favorable market conditions.”
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.