May 27, 2015
Novelis Reports Income Gains in Fiscal 2015
Novelis, the Atlanta-based aluminum maker, reported net income of $148 million for its 2015 fiscal year, a 42 percent increase from the $104 million reported in fiscal 2014.
"Fiscal 2015 was a successful year as we grew our portfolio of high-recycled premium products," said Steve Fisher, interim president and CEO for Novelis. "We achieved record total shipments, drove benefits from expanding low-cost recycling capabilities worldwide, and grew automotive shipments to record levels. While we are pleased with these achievements, the strengthening U.S. dollar and declining local market metal premiums in the fourth quarter tempered our results."
The company attributed its strong results to increased shipments, a favorable product mix due to a strategic shift to grow automotive shipments, and cost benefits from using a higher percentage of recycled inputs. Partially offsetting these gains were higher costs associated with the start-up and support of new capacity, lower pricing in some Asian markets, as well as unfavorable foreign exchange and metal price lag.
Novelis’ 2015 revenues increased 14 percent to $11.1 billion. Revenue growth was driven by a 5 percent increase in shipments of rolled aluminum products to 3,050 kilotons. Higher average metal prices also contributed to the increase in revenues.
Shipments of aluminum rolled products totaled 758 kilotons for the fourth quarter of fiscal 2015, up slightly compared to the same period last year. Net sales for the quarter increased 12 percent compared the prior-year period to $2.8 billion, but net income declined to $29 million.