Novelis reports record shipments of 923 kilotonnes in Q2; adjusted EBITDA up 22% YoY

Novelis’s net loss stood at $37 million, down 130 percent versus the prior year due to a $181 million net loss associated with discontinued operations.

Net income rose 17 percent year-on- year to $144 million for the second quarter of fiscal year 2021. Excluding tax-effected special items in both years, net income was $158 million, down one percent, “as higher after-tax Adjusted EBITDA was offset by higher depreciation, amortization, and interest expense mainly associated with the acquisition of Aleris.”

"Our outstanding performance this quarter was largely driven by our ability to effectively manage our business and work with customers to meet a sharp increase in demand," said Steve Fisher, President and CEO, Novelis Inc. "While future economic implications resulting from the pandemic remain uncertain, our diverse product portfolio, geographic footprint, and strong financial position will enable Novelis to continue to successfully meet customer needs and continue to invest in our business."

Adjusted EBITDA increased 22 percent to a record $455 million in the second quarter of fiscal 2021.

“Second quarter results reflect outstanding operational performance, flexible and efficient customer service, and the ability to meet rapid recovery in customer demand across end markets, with total flat rolled product shipments up 19 percent sequentially as compared to the first quarter of fiscal 2021. The recovery is most pronounced in the automotive market, with second quarter automotive shipments double compared to the first quarter,” according to the company.

Net sales increased four percent to $3.0 billion in Q2. This was due to an eleven percent increase in shipments, partially offset by lower average aluminum prices. Total flat rolled product shipments stood at 923 kilotonnes, mainly reflecting the addition of the acquired Aleris business.

"Our financial strength, particularly as it relates to cash flow generation, is enabling us to move forward with our strategic plans to invest in new capacity and grow the business," said Devinder Ahuja, Senior Vice President and Chief Financial Officer, Novelis Inc. "We also remain committed to reducing net leverage and total debt, while maintaining ample liquidity levels that allow us to adapt quickly to changes in customer demand during these unprecedented times."