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07 AUGUST 2018 AL CIRCLE

Novelis reports higher income and adjusted EBITDA for Q1 FY2019 on higher shipments and price

EDITED BY : BEETHIKA BISWAS 2MINS READ

Novelis Inc., the world leader in aluminium rolling and recycling, today reported net income of US$137 million for Q1 FY 2019, compared to US$101 million in Q1 FY 2018. Excluding tax-affected special items, the company reported net income of US$113 million in Q1 FY2019, up from US$103 million in the same period of FY 2018.

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The increase in net income, excluding special items, is mainly due to a 15 per cent increase in Adjusted EBITDA to US$332 million in Q1 FY 2019. This gain is attributed to the investments made by the company in order to increase global rolling, automotive finishing, and recycling capacity so that they can drive higher shipments, strengthen its product portfolio, and manage costs.

Net sales increased 16 per cent over the prior year to US$3.1 billion for Q1 FY2019, driven by higher average aluminium prices and higher shipments. Shipments of flat rolled products increased two per cent to 797 kilo tonnes.

The following table shows selected segment financial and operation information (in millions, except shipments which are in thousand tonnes).   

        

"Outstanding operational performance with increased asset optimization and favorable market conditions contributed to another strong quarter," said Steve Fisher, President and CEO of Novelis. "Our recent investment announcements in North America and Asia, along with the pending acquisition of Aleris, will diversify our product portfolio and increase our participation in high-demand, high-value markets to meet growing customer demand."

The company reported negative $4 million of free cash flow for the first quarter of fiscal 2019, a $73 million improvement over the prior year. 

"The progress Novelis has made to improve and transform the business is clearly reflected in our improved financial results, enabling us to make both organic and inorganic strategic growth investments," said Devinder Ahuja, Senior Vice President and Chief Financial Officer for Novelis.


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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