Novelis Inc., the world leader in aluminium rolling, has reported its financial results for the first quarter of the fiscal year 2020.
Net income amounted to USD127 million, down 7% from the prior-year period. Excluding tax-effected special items, such as USD33 million in favourable metal price lag in the prior year, the company reported net income of USD145 million, up 26%.
Adjusted Ebitda increased 11% over the prior-year period to USD372 million, primarily driven by higher total shipments and favourable price and product mix, partially offset by less favourable recycling benefits due to lower aluminium prices. Adjusted Ebitda per tonne reached USD448 in the quarter, as compared to USD419 in the prior year period.
Net sales decreased 6% to USD2.9 billion, driven by lower average aluminium prices and local market premiums, partially offset by higher total shipments and more favourable product price and mix. Shipments of flat rolled products increased 4% to 830,000 tonnes.
“Novelis’ continued success is based on its ability to deliver high-quality products to customers and its focus on optimizing manufacturing operations,” said Steve Fisher, president and CEO of Novelis.
Devinder Ahuja, chief financial officer at Novelis, said: “Our strategic capital projects to increase rolling, recycling and finishing capacity continue to progress on time and on budget. Our focus on continuous operational improvement to fully leverage our existing capacity will allow us to continue to deliver strong results in favourable market conditions."
The company reports that the acquisition of Aleris continues to progress and is expected to close in the fourth quarter of 2019, subject to customary closing conditions and regulatory approvals.