United States – Aluminium rolling and recycling specialist Novelis has reported a net loss of US$ 60 million for the first quarter of its fiscal year 2016. Excluding certain items, however, the company reported a net income of US$ 24 million as compared to US$ 28 million in the corresponding three months of fiscal 2015.
A 9% drop in adjusted EBITDA to US$ 212 million ‘was primarily driven by higher costs associated with the start-up and support of new automotive finishing and recycling capacity, partially offset by favourable product mix due to a strategic shift to grow automotive shipments’.
Steve Fisher, now confirmed as president and chief executive officer at Novelis following an interim period, comments: ‘The first two automotive sheet finishing lines at Oswego are ramping up production capacity to meet current market demand, including supply for the aluminum-intensive 2015 Ford F-150. We will continue to increase production to fully utilise these lines and rationalise our cost base to increase profitability.’
Novelis’ shipments of rolled aluminium products totalled 768 000 tonnes in the first quarter of fiscal 2016, a figure similar to the 770 000 tonnes reported in the same period last year. Revenues declined 2% to US$ 2.6 billion owing mainly to ‘lower average metal prices and local market premiums’.