Profit.ndtv.com
Novelis Q3 net loss at $12 million, sales dip 4%
Edited by : AL CIRCLE
2 min read
The leading producer of aluminium rolled products also registered a 4 per cent dip in net sales to $2.5 billion for the December quarter due to lower shipments and a decrease in average aluminium prices, a company statement said.
Novelis, a subsidiary of Hindalco Industries, has registered a net loss of $12 million for the quarter ended December 31, 2011.
However, the company has managed to trim losses over the year ago period. In the comparable period last year, the net loss stood at $46 million. Hindalco will announce results for December 2011 quarter on Thursday.
The leading producer of aluminium rolled products also registered a 4 per cent dip in net sales to $2.5 billion for the December quarter due to lower shipments and a decrease in average aluminium prices, a company statement said.
Net sales were $2.6 billion in the year-ago period.
Shipments of aluminium rolled products totalled 648 kilo tonnes for the third quarter of fiscal 2012 against 715 kilo tonnes in the third quarter of the previous year. This decrease in shipments was primarily a result of customer de-stocking in Europe due to economic uncertainty and continued weakness in the company's electronics business in Asia, it said.
"Our results this quarter were impacted by softer demand in Europe and Asia, reducing our ability to absorb fixed costs and higher net interest expense as a result of our debt refinancing last year," Novelis Chief Financial Officer Steve Fisher said.
Due to changed scenario, the company has revised its adjusted EBITDA guidance slightly down to $1.05-1.08 billion for fiscal 2012.
According to the statement, Novelis is also reaffirming its fiscal 2012 free cash flow before capital expenditures target of $600-700 million and the capital expenditures of approximately $550-600 million, primarily focused on its global expansion projects in Brazil, Korea and North America.
"Despite the softness we saw in the third quarter, we still believe in the strong long-term growth of the aluminium flat rolled products (FRP) market which is expected to grow 34 percent over the next 5 years," Novelis President and Chief Executive Officer Phil Martens said.
Novelis, a subsidiary of Hindalco Industries, has registered a net loss of $12 million for the quarter ended December 31, 2011.
However, the company has managed to trim losses over the year ago period. In the comparable period last year, the net loss stood at $46 million. Hindalco will announce results for December 2011 quarter on Thursday.
The leading producer of aluminium rolled products also registered a 4 per cent dip in net sales to $2.5 billion for the December quarter due to lower shipments and a decrease in average aluminium prices, a company statement said.
Net sales were $2.6 billion in the year-ago period.
Shipments of aluminium rolled products totalled 648 kilo tonnes for the third quarter of fiscal 2012 against 715 kilo tonnes in the third quarter of the previous year. This decrease in shipments was primarily a result of customer de-stocking in Europe due to economic uncertainty and continued weakness in the company's electronics business in Asia, it said.
"Our results this quarter were impacted by softer demand in Europe and Asia, reducing our ability to absorb fixed costs and higher net interest expense as a result of our debt refinancing last year," Novelis Chief Financial Officer Steve Fisher said.
Due to changed scenario, the company has revised its adjusted EBITDA guidance slightly down to $1.05-1.08 billion for fiscal 2012.
According to the statement, Novelis is also reaffirming its fiscal 2012 free cash flow before capital expenditures target of $600-700 million and the capital expenditures of approximately $550-600 million, primarily focused on its global expansion projects in Brazil, Korea and North America.
"Despite the softness we saw in the third quarter, we still believe in the strong long-term growth of the aluminium flat rolled products (FRP) market which is expected to grow 34 percent over the next 5 years," Novelis President and Chief Executive Officer Phil Martens said.
Previous article
Aluminum extrusion products maker closing Kentland plant
Next articleHindalco net profit seen to decline 2% at Rs 450 crore
Grow with
AL Circle
