Novelis, a aluminium recycling company headquartered in the US, reported a net loss in Q2 FY2021, down by 130pc from the prior year due to a $181mn net loss resulting from discontinued operations at the Duffel and Lewisport plants, according to a company statement.
In the case of continuing operations, the company’s net income rose by 17pc to $144mn, compared to the prior year period. Net income excluding the special items stood at $158mn, down by 1pc from the prior year quarter.
The company’s EBITDA increased by 22pc to $455mn in Q2 FY2021 as against $374mn over the prior year period driven by Aleris business acquisition, targeted cost control initiatives and favourable metal costs.
Flat-rolled shipments
The company’s total flat-rolled product shipments rose by 19pc in the second quarter supported by striking demand recovery in the automotive market. The automotive shipments doubled in Q2, second consecutive record, compared to the prior quarter led by North America. Increased at-home beverage consumption resulted in increased shipments in South America during the quarter.
The demand from the aerospace market remained weak, while the construction market in the North America rebounded and reached pre-pandemic levels.
Acquisition Update
On September 30, the company completed the divestment of the Duffel plant to the international aluminium business of the GFG Alliance, ALVANCE. On November 8, Novelis signed an agreement to sell the Lewisport automotive body sheet business to American Industrial Partners, a private equity firm, for estimated net cash proceeds of almost $171mn.