Novelis Flat Rolled Shipments Plunged 7%, Impacted by Weak Markets

SEATTLE (Scrap Monster): Atlanta-headquartered world’s leading aluminum rolling and recycling company, Novelis, Inc., reported first quarter fiscal 2021 results.

The company recorded net loss from continuing operations of $61 million in Q1 fiscal 2021, down by 148% over the prior year period. The net loss attributed to its shareholders of $79 million too was down significantly by 162% year-on-year. The net income, excluding special items, has dropped substantially by 85% to $22 million. The adjusted EBITDA of $253 million was down by 32%. Novelis, Inc. reported net liquidity of $2.1 billion at the end of the quarter.

The lower average LME aluminum prices and local market premiums resulted in 17% year-on-year decline in net sales to $2.4 billion during the first quarter. The flat rolled product shipments were down sharply by 7% at 774 kilotonnes, mainly due to weak market conditions.

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Devinder Ahuja, Senior Vice President and Chief Financial Officer, Novelis Inc. noted that the company was able to implement a number of cost reduction initiatives. These initiatives, combined with strong liquidity position, will help the company face the near-term market headwinds, he added.

By mid-April this year, the company closed the acquisition of Aleris Corporation, the integration of which to Novelis has already begun.