Novelis Reports Second Quarter Results

Novelis, the global leader in aluminum recycling and rolling, today reported net income attributable to its common shareholder of $49 million for the second quarter of fiscal 2013. Excluding tax-effected special items in both periods, net income for the second quarter of 2013 was $62 million, compared to $129 million for the same period in 2012 mainly driven by lower Adjusted EBITDA and a tax benefit in the prior year that did not reoccur.

Adjusted EBITDA was $277 million for the second quarter of 2013, compared to the Company's second highest EBITDA of $301 million reported for the same quarter in 2012, primarily a result of higher employment and project start-up costs associated with its expansions.

"As expected, we had a strong second quarter with Adjusted EBITDA up seven percent sequentially, and are operating at or near capacity in all of our regions," said Phil Martens, Novelis President and Chief Executive Officer. " Although we see near-term pressure due to a slowdown in the global economy, we continue to believe in the strong long-term growth outlook for can, automotive, and specialties and expect our expansions to deliver strong EBITDA contributions once they are fully commissioned."

Shipments of aluminum rolled products totaled 719 kilotonnes for the second quarter of fiscal 2013, flat compared to shipments of 720 kilotonnes for the same period last year.

Net sales for the second quarter of fiscal 2013 were $2.4 billion, a 15 percent decrease compared to the $2.9 billion reported in the same period a year ago. This decrease was mainly the result of a 20 percent decline in average aluminum prices when compared to the previous year.

For the second quarter of fiscal 2013, Novelis reported liquidity of $919 million. "Our liquidity was very strong. In the third quarter, our liquidity will be pressured by a few factors, mainly the semi-annual bond interest payment and our aggressive capital expenditures program," said Steve Fisher, SVP and Chief Financial Officer of Novelis. Free cash flow was a negative $25 million for the second quarter of 2013, primarily due to capital investments of $178 million.

Strategic Expansions The Company continues to execute its strategy. Last month, it opened Asia's largest fully integrated recycling and casting facility in South Korea. Together with the Company's other recycling operations worldwide, this new state-of-the-art facility makes Novelis the world's leading recycler of aluminum, reduces operating costs and furthers its sustainability commitment and goals.

Business Outlook: The Company is monitoring some market related variables due to further slowing of the global economy and increased competitive pressures in some of its regions. While too early to be certain, these factors could impact the second half of the fiscal year.