“Teams have been working around the clock to quickly and safely restore operations in Oswego, while deploying alternative resources to minimize customer disruption,” the company said in a statement.Novelis incurred $21 million in charges related to this incident during the quarter. It also said that the factory is insured for property damage and business interruption losses associated with such events, and that approximately 70-80% is recoverable through insurance in future periods.
The company also reported earnings on Tuesday, reporting 27% year-over-year growth in its net income for the September quarter, to $163 million. Excluding special items, the result was 37% lower compared to the previous year at $113 million.
The US-based aluminum producer’s net sales of $4.7 billion were up 10% compared to the previous year, mainly due to higher average aluminum prices. Total rolled product shipments for the quarter were in line with the previous year at 941 kilotons. “Slightly higher shipments from the automotive and aerospace sectors were offset by lower shipments of beverage containers and specialty products,” the company said in a statement. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell 9% year-on-year to $422 million, while adjusted EBITDA on each tonne of aluminum was $448, down 8% year-on-year. year.
The decline in EBITDA was primarily due to a net negative tariff impact and higher aluminum scrap prices, which were partially offset by higher product prices and cost efficiency measures, the company said.
“Our second quarter financial performance was in line with our expectations for sequential improvements, reflecting solid execution in a continued dynamic environment,” said Steve Fisher, CEO of Novelis Inc.
“Our diverse global footprint will be further strengthened with the significant investments we are making in the US to build a state-of-the-art facility in Bay Minette to bring needed capacity to an undersupplied domestic market,” he said.
Novelis has spent $913 million on capital expenditure in the six months of the current fiscal year to date. This was primarily for strategic investments in new rolling and recycling capacity under construction, including the company’s new greenfield rolling and recycling plant in Bay Minette, Alabama.
The company announced its earnings after market hours in India, and shares of Hindalco Industries ended down 1.8% at 830.70 rupees on the BSE. Hindalco Industries will announce its profit figures on Friday.
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