Novelis Records Uptick in Flat Rolled Aluminum Shipments

SEATTLE (Scrap Monster): Atlanta-headquartered aluminum rolling and recycling major Novelis, Inc. announced strong financial results for third quarter of fiscal 2019. The quarter was marked by robust operational performance and increased customer demand for sustainable solutions.

Novelis reported net income attributable to its shareholder of $78 million during the quarter, lower when compared with $121 million in corresponding quarter the previous fiscal. The net income excluding special items dropped year-on-year from $138 million to $101 million. Higher shipments, favorable product portfolio mix and metal costs led to 6% jump in adjusted EBITDA over the previous year to total $322 million in Q3 fiscal 2019. Per ton adjusted EBITDA stood at $403 during the quarter.

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The shipments of flat rolled products increased marginally by 1% to total 800 kilotonnes. Higher total shipments and favorable product mix boosted net sales by 3% year-on-year to total $3.0 billion. The demand for high-strength, lightweight aluminum solutions and innovative sustainable aluminum packaging solutions witnessed tremendous jump during the quarter, with automakers and beverage companies accounting for much of the demand.

Novelis generated $23 million of free cash flow for the third quarter of fiscal 2019. The cash flow will be utilized towards funding organic investments, which in turn will ensure long term prospects of its operations, said Devinder Ahuja, Senior Vice President and Chief Financial Officer, Novelis Inc.

Commenting on Aleris acquisition, the company noted that the transaction continues to progress and is expected to close in Q3 of this calendar year.