Novelis publish Q2 results

Novelis reported yesterday a net loss of $13 million for its second quarter of fiscal year 2016.

The company reported a net income of $25 million in the second quarter of fiscal 2016 compared to $36 million in the second quarter of fiscal 2015.

Adjusted EBITDA was $236 million in the second quarter of fiscal 2016, up seven per cent compared to $221 million in the prior year.

The increase was driven by higher shipments of premium automotive and beverage can sheet, partially offset by less favourable recycling benefits due to lower aluminium prices as compared to the prior year.

Current year results also reflect higher costs associated with the start up and support of new automotive finishing and recycling capacity. However, the company has made good progress reducing new asset start up costs on a sequential basis. Adjusted EBITDA excluding metal price lag increased eleven per cent in the second quarter of fiscal 2016 from $212 million reported in the first quarter of fiscal 2016, primarily driven by higher shipments, better product mix and lower start up costs.

Steve Fisher, president and chief officer for Novelis, says, “Our focus on growing premium can, automotive and high-end specialty shipments, managing costs and reducing working capital is delivering results.

“We are leveraging new assets, reducing start up costs, and building momentum in our expanded automotive and can sheet business. We are now commissioning our two most recently constructed automotive lines in the US and Germany and solidifying our position as the global leader in aluminium flat rolled products.”