Global – Net income at aluminium rolling and recycling specialist Novelis surged to US$ 46 million in the third quarter of the 2014/15 financial year from US$ 13 million at the same stage in 2013/14. Revenues climbed 18% to US$ 2.8 billion, driven by a 5% increase in shipments of rolled aluminium products and higher metal prices.
‘Our strong third quarter results are a clear demonstration that our new business model is delivering benefits,’ comments Novelis’ president and ceo Phil Martens. ‘By shifting our portfolio to more premium products in high-growth markets and advancing our recycling operations, we set record can and automotive shipments, generated significantly higher earnings, and achieved our mid-decade goal of having 50% recycled content in our products.’
The company’s earnings ‘will further improve’ in the final quarter of the 2014/15 financial period ‘as we near the full production run-rate of automotive sheet for Ford, ship at record levels, and further ramp up new recycling facilities in Germany and Brazil’, Martens insists. However, growth is expected to be tempered by ‘negative currency headwinds in Europe, challenging pricing dynamics in Asia, and reduced production related to the Logan hot mill outage in North America last month’.
Overall, earnings before interest, taxes, depreciation and amortisation for the second half of 2014/15 ‘will be higher than in the first half of the year’, Martens predicts.
*A feature on Novelis appears in the January/February 2015 issue of Recycling International.
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