Novelis’ Aluminum Shipments Declined 7%

SEATTLE (Scrap Monster):  Novelis Inc. reported fourth quarter and full fiscal year 2020 results.

The net sales during the quarter witnessed decline by 12% from the prior year period to $2.7 billion, mainly driven by lower average LME aluminium prices and reduced shipments. The flat-rolled product shipments declined to 811 kilotonnes. The adjusted EBITDA surged higher by 7% to $383 million in the fourth quarter of fiscal 2020. This compares with $357 million in the corresponding quarter a year before.

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During the full fiscal year, the net sales recorded a decline of 9% to $11.2 billion. Flat rolled product shipments at 3,273 kilotonnes remained more or less flat with the prior fiscal. The adjusted EBITDA hit a new record of $1,472 million, surging higher by 8%. The free cash flow before capital expenditures posted 30% improvement. Meantime, capital expenditures touched $599 million. As of the end of the fiscal year, Novelis reported liquidity position of $2.6 billion.

Commenting on the results, Steve Fisher, President and CEO, Novelis Inc. noted that the company’s strong balance sheet position and will help the company to successfully navigate the challenges posed by the novel coronavirus and extend its leadership position in the aluminum industry. The company plans to reduce costs and prioritize capital spend to position the company to drive sustainable growth, he added.