UNITED KINGDOM May 15 2015 3:45 PM
LONDON (Scrap Register): Novelis, the world leader in aluminum rolling and recycling, has reported a sharp increase in net income during the fiscal year 2015 mainly on record sales.
Novelis has reported net income of $148 million for fiscal year 2015, a 42 percent increase from the $104 million reported in fiscal 2014. Excluding certain tax-effected items, net income increased four percent to $161 million in fiscal 2015.
“We achieved record total shipments, drove benefits from expanding low-cost recycling capabilities worldwide, and grew automotive shipments to record levels, strengthening our leadership position in this fast growing segment. While we are pleased with these achievements, the strengthening U.S. dollar and declining local market metal premiums in the fourth quarter tempered our results,” said Steve Fisher, Interim President and Chief Executive Officer for Novelis.
Adjusted EBITDA grew two percent to $902 million in fiscal 2015 compared to the $885 million reported in fiscal 2014. The increase was primarily driven by higher shipments, favourable product mix due to a strategic shift to grow automotive shipments and cost benefits from using a higher percentage of recycled metal inputs.
Partially offsetting these gains were higher costs associated with the start-up and support of new capacity, lower pricing in some Asian markets, as well as unfavorable foreign exchange and metal price lag.
Fiscal 2015 revenues increased 14 percent to $11.1 billion compared to $9.8 billion in fiscal 2014. Revenue growth was driven by a five percent increase in shipments of rolled aluminum products to 3,050 kilotons in fiscal year 2015. Every operating region reported an increase in shipments year-over-year. Higher average metal prices in fiscal year 2015 also contributed to the increase in revenues.