Aluminum flat-rolled producer and recycler, Novelis, detailed a record financial performance in Q3 FY2021 ended Dec 31, 2020, due to sustained demand for aluminum and strong performance achieved across its operations.
The company also entered new partnerships to strengthen aluminum as the preferred material for customers, while offering new alloys to the market, boosting the industry, it said in a press release on Wednesday.
Novelis’ automotive finishing plant in Guthrie, Kentucky, shipped its first coils to consumers in December, while the new automotive finishing line in Changzhou, China, is anticipated to begin commercial production in Q4 of its fiscal year. Brazil’s recycling, casting, and rolling expansion continues on course with commissioning scheduled for mid-fiscal 2022.
Shipments increased by 6.8pc to 2.63mn mt in April-December 2020 compared to 2.46mn mt in the prior-year period. The company indicated that these improvements were due to the purchase and addition of Aleris to its portfolio along with strong demand in end-product markets. The aluminum recycler shipped 933,000mt of flat-rolled products in October-December 2020 a 17pc increase compared to 797,000mt in October-December 2019.
Novelis’ net sales tallied at $8.65bn in April-December 2020 up 1.8pc from $8.49bn in April-December 2019. The company’s net sales increased by 19.4pc to $3.24bn in October-December 2020 against $2.72bn in the prior-year period mostly attributed to 17pc more total shipments along with an increased aluminum price average.
The producer’s net income fell by 22pc to $278mn in the nine months of 2020 compared to $357mn in the same timeframe in 2019. However, net income from continuing operations increased 82pc to $195mn in October-December 2020, over $107mn in the prior-year period.
The company’s adjusted EBITDA rose by 11pc to $1.21bn in April-December 2020 over $1.09bn in April-December 2019. Novelis’ adjusted EBITDA rose by 46pc to $501mn in October-December 2020 compared to $343mn in the prior-year period. The increases were owed to organic growth, advantageous metal profits, and a net $50mn in EBITDA provided by the Aleris acquisition.