Higher Aluminum Prices Boost Novelis' Q1 Fiscal 2019 Results

SEATTLE (Scrap Monster): Novelis, Inc.-the Atlanta, Georgia-headquartered global leader in rolled aluminum products and recycling announced financial results for the first quarter of fiscal 2019. The company’s reported net income excluding special items totaled $113 million, significantly higher by 10% over the comparable period last fiscal. The net income attributable to shareholders was $137 million.

The adjusted EBITDA increased by 15% over the previous year to $332 million. The increase in EBITDA is primarily attributed to the optimization of investments, aimed at increasing production capacity, reducing costs and strengthening its product offering.

The net sales witnessed a jump of 16% over the prior year to $3.1 billion, mainly driven by higher average aluminum price, higher shipments and product mix. For instance, the shipment of flat rolled products increased marginally by 2% to total 797 kilotonnes. However, the net sales were partially impacted by lower conversion premiums on certain products. Novelis reported negative $4 million of free cash flow during the quarter. The capital expenditure spending increased over the previous year from $39 million to $54 million. Also, the company reported liquidity of $1.9 billion as of June 30, 2018.

Steve Fisher, President and CEO of Novelis attributed the strong quarter to outstanding operational performance and favorable market conditions. The proposed acquisition of Aleris, Inc. will further diversify the company’s product portfolio, Fisher added.