Novelis: results show ‘less favourable recycling benefits’

Global – Excluding special items, aluminium rolling and recycling specialist Novelis reported a net income of US$ 32 million in the third quarter of its current fiscal year compared to US$ 54 million in the previous third quarter.

A 4% increase in adjusted EBITDA from US$ 228 million to US$ 238 million ‘was driven by higher shipments of automotive and beverage can sheet’ but ‘partially offset by less favourable recycling benefits due to depressed aluminium prices as compared to the prior year’. Latest results also reflect ‘higher fixed costs associated with new automotive and recycling operations’.

Novelis’ shipments of rolled aluminium products climbed 3% to 779 000 tonnes in the quarter under review but revenues fell 17% to US$ 2.4 billion, largely as a result of ‘significantly lower average aluminium prices and local market premiums’. Claiming to be the world’s largest recycler of aluminium, Novelis has approximately 11 500 employees and reported revenues of US$ 11.1 billion for its previous fiscal year.

It supplies aluminium sheet and foil products to transportation, packaging, construction, industrial and consumer electronics markets in North America, Europe, Asia and South America.