Novelis reports Q3 net income of $107 million
Atlanta (Georgia) [USA], Feb 12 (ANI): Novelis Inc, a subsidiary of Aditya Birla-led Hindalco Industries, has reported net income attributable to its common shareholder of 107 million dollars for the third quarter (October to December) of current fiscal compared to 78 million dollars in the prior year period.
ANI
Feb 12, 2020 15:28 IST
Atlanta (Georgia) [USA], Feb 12 (ANI): Novelis Inc, a subsidiary of Aditya Birla-led Hindalco Industries, has reported net income attributable to its common shareholder of 107 million dollars for the third quarter (October to December) of current fiscal compared to 78 million dollars in the prior year period.
Excluding tax-effected special items in both years, the world leader in aluminum rolling and recycling reported net income of 132 million dollars in the third quarter compared to 101 million dollars in the prior year period.
This 31 per cent increase is primarily due to higher adjusted earnings before interest, tax, depreciation and amortisation (EBITDA).
Adjusted EBITDA increased 7 per cent to 343 million dollars in the third quarter compared to 322 million dollars in the prior year period, primarily driven by portfolio optimisation efforts, operating cost efficiencies, and favourable foreign exchange, partially offset by less favourable recycling benefits due to lower aluminum prices.
Adjusted EBITDA per tonne reached 430 dollars in the quarter as compared to 403 dollars in the prior year.
Net sales decreased 10 per cent from the prior year period to 2.7 billion dollars for the third quarter, driven by lower average LME aluminum prices and local market premiums. Flat rolled product shipments were in line with the prior year at 797 kilotonnes.
"Novelis continues to perform very well both operationally and financially, delivering another set of strong results in the third quarter," said Steve Fisher, President and Chief Executive Officer of Novelis Inc.
"At the same time, we have made excellent progress advancing our major organic expansion projects in the United States, China and Brazil, allowing us to continue to grow with our customers and better compete against steel and other materials," he said in a statement.
Each of these projects continues to progress on time and on budget. Notably, the company's greenfield automotive finishing plant at Guthrie in Kentucky is in the commissioning process, with commercial shipments to customers expected to commence in the coming months.
Fiscal year-to-date free cash flow before capital expenditures improved 43 per cent over the prior year to 483 million dollars, driven primarily by higher adjusted EBITDA as well as favourable working capital combined with lower aluminum prices.
Capital expenditures doubled year-over-year to 422 million dollars for the first nine months, mainly to support strategic investments in incremental rolling, recycling and automotive finishing capacity.
As a result of this increased capital spending, free cash flow of 61 million dollars compares to 127 million dollars in the prior year period.
(ANI)
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