Strong operational performance and automotive strategy tripled Q1 FY 2018 earnings for Novelis

<p>Novelis, the aluminium rolling and recycling major has reported net income of $101 million for Q1 FY 2018, more than triple from $33 million in Q1 FY 2017. The YoY increase in net income is driven primarily by higher EBITDA and lower interest expense.</p> <p>"Our automotive strategy, enhanced operational performance and strong customer relationships resulted in record first quarter shipments while also increasing Adjusted EBITDA per ton," said Steve Fisher, President and Chief Executive Officer for Novelis.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/Novelis-1.jpg" alt="News" width="517" height="226" /></p> <p>"Leveraging our unmatched global manufacturing footprint, innovative technology and closed-loop recycling systems, Novelis has become a preferred choice for automotive aluminium sheet. As more and more automakers turn to aluminum solutions to produce the next generation of vehicles, we are actively looking at opportunities to increase capacity to support our customers and reinforce our leadership position in this growing market."</p> <p>Adjusted EBITDA increased 8% to $289 million for the Q1 from $268 million in the same period of FY2017, driven by higher shipments, operational improvements, and favourable product mix. The positive results were partially offset by pricing pressures in beverage can.</p> <p>Net sales increased 16% to $2.7 billion driven by a 4% increase in flat rolled products shipments to 785 kilotonnes, including a 16% increase in shipments of profitable premium automotive products, as well as improved aluminium prices.</p> <p>{googleAdsense}</p> <p>The company reported negative free cash flow of $77 million in Q1 FY 2018 as compared to negative $146 million in the same period of FY 2017. As of June 30, 2017, the company reported a strong liquidity position of $1.2 billion.</p> <p>Based on strong Q1 results and positive market outlook, Novelis expects the full year EBITDA to be between $1,100 and $1,150 million.</p>