Atlanta’s rolled and recycled aluminium firm Novelis Inc. reported results for the first quarter of fiscal year 2021 yesterday. Though financial numbers were down in the quarter, a sustained strong performance leading into the quarter helped limit the damage from a pandemic-stricken market.
For the just-ended quarter Novelis reported a net loss of US$61 million, off by 148 percent on the year. Less special items, the firm counted US$22 million of net income. Adjusted EBITDA for the quarter was lower by 32 percent to US$253 million, and the quarter’s end had the firm’s liquidity totaling US$2.1 billion.
Though feeling the impact of the novel coronavirus pandemic, Novelis said that the beverage can market has thus far helped it weather the storm. Demand in the specialty and automotive aluminium sectors began the first few steps in what looks to be a recovery, said the company, helping bolster Novelis’s fortunes toward the quarter’s end.
Steve Fisher, President and CEO of Novelis, said its strong performance heading into the quarter helped blunt the blow from a down market.
“With employee safety as our top priority, Novelis continues implementing a number of measures to protect our colleagues from COVID-19-related challenges, while successfully serving our customers and integrating Aleris with minimal disruption. We entered this fiscal year in a position of strength based on four consecutive years of record earnings and remain confident in our ability to handle this near-term uncertainty. With our diverse product portfolio, reliable and efficient operations, and world-class workforce, we have the flexibility and expertise to provide the solutions our customers need.”
Devinder Ahuja, Novelis’ Senior Vice President and Chief Financial Officer, elaborated upon the company’s plans going forward to navigate the difficult market conditions.
“We swiftly implemented a number of cost reduction initiatives to create sustainable flexibility in our cost structure, and are prepared to take further action if needed based on customer demand trends. These initiatives, combined with our strong liquidity position and identified business combination synergies provide us the confidence to manage through near-term market headwinds while continuing to strengthen the business for future success.”
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.