China Aluminium Network
Novelis to invest $700m for projects in China, US, and Brazil
Edited by : AL CIRCLE
2 min read
Novelis, the US based subsidiary of Hindalco Industries, has earmarked capital expenditure of $600-700 million primarily focused on its global expansion of projects in Brazil, South Korea, China and the United States.
“We will have negative cash flow in the first quarter of 2012-13. We will invest our existing cash for the capital expenditure. Also due to lower aluminium prices on the London Metal Exchange cash flow will be lower among other factors,” said Phil Martens, Novelis president and CEO, in a conference call with analysts and journalists.
The world’s leading producer of aluminium rolled products invested around $516 million for its global expansion of projects and key product segment of can, automotive, electronics and high-end specialities in 2011-12.
Novelis has also invested in major recycling initiatives in all four operating regions, including advanced equipment and technology to process diversified scrap inputs, which will enable it to achieve recycled content of 50 per cent in its products by 2015. The company continues to expect strong aluminium rolled products demand in Asia, primarily driven by China, over the next five years.
Steve Fisher, CFO of Novelis, said, “For financial year 2012 Novelis reported solid liquidity of $1,021 million and free cash flow of $98 million. Our robust cash generation allowed us to more than double our capital expenditures year-on-year. Going forward we expect continued strong cash flow generation which will enable us to fund our strategic expansion projects across the globe.”
However, in the January-March quarter it reported net loss of $107 million compared to net profit of $50 million YoY, due to payment for one-time extraordinary item of $111 million on account of provision on loss of sale of assets and also due to lower sales.
Net sales for the fourth quarter declined 12 per cent year-on-year to $2.6 billion. Adjusted Ebitda for the fourth quarter was $233 million, compared with $280 million a year ago.
Going forward the company is expected to perform well on back of its project expansion, said Ravindra Deshpande, an analyst at Elara Capital.
“We will have negative cash flow in the first quarter of 2012-13. We will invest our existing cash for the capital expenditure. Also due to lower aluminium prices on the London Metal Exchange cash flow will be lower among other factors,” said Phil Martens, Novelis president and CEO, in a conference call with analysts and journalists.
The world’s leading producer of aluminium rolled products invested around $516 million for its global expansion of projects and key product segment of can, automotive, electronics and high-end specialities in 2011-12.
Novelis has also invested in major recycling initiatives in all four operating regions, including advanced equipment and technology to process diversified scrap inputs, which will enable it to achieve recycled content of 50 per cent in its products by 2015. The company continues to expect strong aluminium rolled products demand in Asia, primarily driven by China, over the next five years.
Steve Fisher, CFO of Novelis, said, “For financial year 2012 Novelis reported solid liquidity of $1,021 million and free cash flow of $98 million. Our robust cash generation allowed us to more than double our capital expenditures year-on-year. Going forward we expect continued strong cash flow generation which will enable us to fund our strategic expansion projects across the globe.”
However, in the January-March quarter it reported net loss of $107 million compared to net profit of $50 million YoY, due to payment for one-time extraordinary item of $111 million on account of provision on loss of sale of assets and also due to lower sales.
Net sales for the fourth quarter declined 12 per cent year-on-year to $2.6 billion. Adjusted Ebitda for the fourth quarter was $233 million, compared with $280 million a year ago.
Going forward the company is expected to perform well on back of its project expansion, said Ravindra Deshpande, an analyst at Elara Capital.
Previous article
Demand for aluminium foil in Europe drops in first quarter
Next articleAluminum caster Spartan benefits from diversifying aluminum and magnesium
Grow with
AL Circle
