Novelis Sees Income Triple in First Quarter of Fiscal 2018
By Metal Center News Staff
on Aug 16, 2017
Atlanta-based aluminum maker Novelis in August reported net income of $101 million for the first quarter of its fiscal year 2018, more than tripling a net income of $24 million in the year-ago period.
Higher EBITDA and lower interest expense following debt refinancing actions in fiscal 2017 were the primary factors affecting the jump in net income, according to the company.
Novelis President and CEO Steve Fisher added that the company’s improved operational performance, strong customer relationships and automotive strategy helped drive record first-quarter shipments, as well as higher adjusted EBITDA per ton. Adjusted EBITDA jumped 8 percent year-over-year to $289 million for the quarter. The company credits higher shipments, ongoing operational improvements and favorable product mix for the increase.
“Leveraging our unmatched global manufacturing footprint, innovative technology and closed-loop recycling systems, Novelis has become a preferred choice for automotive aluminum sheet,” Fisher said. “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."
Additionally, Novelis reported a 16 percent increase in net sales for the first quarter of fiscal 2018. The company’s $2.7 billion in net sales was the result of higher average aluminum prices, a 16 percent increase in shipments of higher conversion premium automotive products and a 4 percent increase in total shipments of flat-rolled products to 785 kilotons.