Novelis Inc., the world leader in aluminum rolling and recycling, today reported record results for Q4 2017 recording significant YoY increases in Adjusted EBITDA, net income, free cash flow and automotive sheet shipments.
{alcircleadd}For Q4 2017, Net income increased 46% to $73 million. Excluding special items net income stood at $47 million. Adjusted EBITDA excluding metal price lag was up 5% to $292 million. The results were driven by 26% increase in automotive shipments. Net sales increased 9% to $2.6 billion for Q4 2017, driven by higher aluminum prices and increased automotive shipments and shipments of high value products. Total rolled aluminum products shipments were flat YoY at 789 kilotonnes.
Positive factors like higher automotive sheet shipments, operating efficiencies, lower metal cost, and favourable currency were slightly offset by higher employment cost and lower prices on some can and specialty products.
For the full year, revenues decreased 3% to $9.6 billion. Net income increased 78% to $233 million. Excluding special items net income stood at $45 million. Adjusted EBITDA excluding metal price lag was up 13% to $1.09 million. For the whole year automotive shipments increased 17% forming about 18% of the total FRP shipments. The increase was driven by strong operational efficiencies, favorable product mix, and favorable currency, partially offset by lower shipments.
Novelis’ strong performance was attributed to its focused strategy to improve operational efficiencies and increase shipments of premium products like the automotive sheets.
"By consistently executing our strategy and staying focused on business fundamentals, we have driven value for our stakeholders and are able to better serve our customers," said Steve Fisher, President and Chief Executive Officer for Novelis. "This year's record performance provides us with a blueprint for sustainable results and the strategic flexibility to enhance our leadership position in the industry."
Record automotive sheet shipment levels were attributed to the ramp-up of all new finishing lines for the new Ford F-Series Super Duty line of trucks in North America, the success of Jaguar Land Rover's new aluminum-intensive vehicles in Europe, and the Cadillac CT6 and Jaguar XFL in China.
Novelis also signed an agreement with next-generation car company NIO to provide innovative aluminum solutions for its upcoming premium aluminum-intensive electric vehicles.
{googleAdsense}
Novelis more than doubled its full year free cash flow to a record $361 million in FY2017 driven by stronger adjusted EBITDA, as well as lower interest and capital expenditures. As on March 31, 2017, the company reported strong liquidity of $1.3 billion.
"We exceeded our expectations for delivering strong free cash flow as a result of excellent EBITDA performance and significant interest savings generated by our debt refinancing actions," said Devinder Ahuja, Senior Vice President and Chief Financial Officer.
This news is also available on our App 'AlCircle News' Android | iOS