Lower shipments but improved income at Novelis

Global: Excluding special items, aluminium rolling and recycling major Novelis more than doubled net income in its latest fiscal third quarter to US$ 67 million from US$ 32 million in the same period of the previous financial year. President and ceo Steve Fisher attributed the strong results to 'continued operational efficiencies combined with strong aluminium automotive sheet demand and strategic capacity investments'.

Overall, Novelis experienced a 4% decline in total shipments of rolled aluminium products to 750 000 tonnes, mainly owing to 'prior strategic decisions to reduce volumes in China and soft demand in South America'. These lower shipments were partially offset by slightly higher average aluminium prices, leading to a 2% decrease in net sales to US$ 2.3 billion for the quarter under review.

As of the end of 2016, the company reported a strong liquidity position over US$ 1 billion.



Sign up now for our free, weekly newsletter

advertisement