Novelis has reported first-quarter net income attributable to its common shareholder of US$127m for the first quarter of fiscal year 2020, compared to US$137m in the prior year period, while sales fell 6% to US$2.9bn.
Excluding tax-affected special items, such as US$33m in favourable metal price lag in the prior year, the company reported net income of US$145m in the first quarter of fiscal 2020, compared to US$115m in the prior year period. This 26% increase is primarily due to higher adjusted EBITDA.
Adjusted EBITDA increased 11% during the prior year period to US$372m in the first quarter of fiscal 2020, primarily driven by higher total shipments as well as favourable price and product mix, partially offset by less favourable recycling benefits due to lower aluminium prices. Adjusted EBITDA per ton reached US$448 in the quarter, compared to US$419 in the prior year period.
Net sales decreased 6% during the prior year period to US$2.9bn for the first quarter of fiscal 2020, 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% during the prior year to 830 kilotonnes.
“Novelis’ continued success is based on its ability to deliver high-quality products to customers and its focus on optimising manufacturing operations,” said Novelis president and CEO, Steve Fisher.
“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 aluminium solutions.”
On 26 July, 2018, Novelis announced it signed a definitive agreement to acquire Aleris.
The acquisition continues to progress and is expected to close in the fourth quarter of calendar year 2019, subject to customary closing conditions and regulatory approvals.