Novelis’ Q3 FY2020 net sales declines 10% YoY on lower average LME aluminium prices

Novelis Inc., the world leader in aluminium rolling and recycling, reported net income of $107 million in Q3 FY2020, compared to $78 million in the prior year period. Excluding tax-effected special items, net income stood at $132 million, up 31 per cent year-on-year on higher Adjusted EBITDA.

Adjusted EBITDA increased 7 per cent year-on-year to $343 million in the third quarter of fiscal 2020, primarily driven by portfolio optimization efforts, operating cost efficiencies, and favourable foreign exchange, partially offset by less favourable recycling benefits due to lower aluminium prices.

Net sales decreased 10 per cent year-on-year to $2.7 billion in Q3 FY2020, driven by lower average LME aluminium prices and local market premiums. Shipments of flat rolled products were in line with the prior year, at 797 kilotonnes.

"Novelis continues to perform very well both operationally and financially, delivering another set of strong results in the third quarter," said Steve Fisher, President and CEO, Novelis Inc. "At the same time, we have made excellent progress advancing our major organic expansion projects in the U.S., China and Brazil, allowing us to continue to grow with our customers and better compete against steel and other materials."

“Each of these projects continue to progress on time and on budget. Notably, the company's greenfield automotive finishing plant in Guthrie, Kentucky, is in the commissioning process, with commercial shipments to customers expected to commence in the coming months,” the company said.