Novelis sales down on aluminium prices
Leading aluminium rolling and recycling business Novelis reported weak first quarter results this week.
The announcement, made yesterday 12 August, showed Novelis’ net profit fell 84.61% to US$14 million or the first quarter of fiscal 2014.
Net sales for the first quarter of fiscal were $2.4 billion compared to $2.6 billion reported for the previous first quarter.
Shipments of aluminum rolled products totalled 708 kilotonnes for the first quarter of fiscal 2013, down 2% compared to shipments of 722 kilotonnes for the same period last year.
This decrease was primarily due to, according to the company, a 7% decline in average aluminum prices, lower shipments, and lower conversion premiums.
“Despite the challenges we faced in the first quarter, we maintained financial discipline through good cost control and will continue this focus on cost containment going forward,” said Phil Martens president and chief executive Officer for Novelis.
“In addition, our global strategic expansions and favorable demand trends supported by the 2014 World Cup in Brazil and automotive material substitution towards aluminum sheet will also help drive our business forward in the second half of this fiscal year.
The company also said Fiscal 2014 is a “transitional year” as it begins the commissioning process of several strategic global expansions to support future demand for premium products in can, automotive and specialty markets.
In July, the company began the commissioning process at both its new hot and cold mills in Korea.
This largely completes the US$400 million investment in Korea to add approximately 350 kilotonnes of incremental rolling capacity, and 265 kilotonnes of recycling capacity that came online late last year.
