Global – US-based aluminium rolled products and major light metal recycler Novelis has reported a net loss of US$ 13 million for the second quarter of its fiscal year. Excluding special items, it achieved a net income of US$ 25 million compared to US$ 36 million in the corresponding period last year.
Increased shipments of premium automotive and beverage can sheet were partially offset by ‘less favourable recycling benefits’ as a result of lower year-on-year aluminium prices, the company explains. The results also reflect higher costs associated with the start-up and support of new automotive finishing and recycling capacity. Novelis’ shipments of rolled aluminium products reached an all-time high of 788 000 tonnes in the second quarter – a 3% increase over the 765 000 tonnes of a year earlier.
However, ‘sharply lower’ average aluminium prices and local market premiums drove down revenues by 12% from US$ 2.8 billion to US$ 2.5 billion. ‘Our focus on growing premium can, automotive and high-end specialty shipments, managing costs and reducing working capital is delivering results,’ comments Novelis’ president and ceo Steve Fisher.
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