May 12, 2017 12:30:16 PM
SEATTLE (Scrap Monster): Novelis Inc., the global leader in aluminum rolled products and the world's largest recycler of aluminum has declared the results for the fourth quarter of fiscal year 2017 and the full fiscal year. The fourth quarter and the fiscal year net income surged higher significantly. The automotive shipments touched record high during Q4. Also, the company reported significant improvement in recycled inputs during the fiscal.
Commenting on the company’s performance during the entire fiscal 2017, Steve Fisher, president and chief executive officer noted that it is proud to have delivered better service to its customers by consistently executing its strategy and staying focused on business fundamentals. He expressed the hope that current level of performance could be sustained in the years to come.
According to Novelis, the net sales surged 9% in Q4 of fiscal 2017 to $2.6 billion. The huge surge in sales was mainly on account of higher average aluminum prices and increased shipments of premium products. The automotive shipments skyrocketed by 26% during the quarter. Meantime, the total shipments of rolled aluminum products held steady. The adjusted EBITDA for the quarter jumped higher significantly by over 8% from $270 million to $292 million. The quarter reported higher operating efficiencies and increased automotive shipments. The lower metal cost and favorable currency also contributed to EBITDA growth. On the other hand, lower prices on some can and specialty products as well as higher employment costs dragged the EBITDA down.
During fiscal 2017, the company’s revenues declined 3% to $9.6 billion. The total shipments witnessed 2% decline during the year to total 3.067 million tonnes. However, automotive sheet shipments increased. The company’s shipment portfolio grew 18% during the fiscal year. The adjusted EBITDA grew by one-third to $1.05 billion, aided by reduced negative impact of metal price lag. The metal price lag reduced to negative $31 million as compared with negative $172 million during the fiscal prior to this. The company’s full year free cash flow more than doubled to hit record high of $361 million during fiscal 2017, mainly on account of stronger EBITDA, lower interest and capital expenditures. The company reported liquidity of $1.3 billion as at the end of the fiscal year.
The company reported a big leap in use of recycled content. Novelis improved its metal mix by increasing recycled inputs from 53% in fiscal 2016 to 55% in fiscal 2017. This is significantly higher when compared with 49% in 2015 and 46% in 2014. Novelis also made significant progress in reducing water intensity and energy intensity at its facilities worldwide. The company noted that all efforts will be undertaken to expand the use of recycled aluminum towards meeting higher standards of energy-efficiency.
The company successfully completed ramp-up of all new finishing lines to support the new Ford F-Series Super Duty line of trucks in North America. Another key achievement in fiscal 2017 was the strategic deal with Munich-based electric car maker NIO towards supply of Advanz aluminum alloys to NIO, which will be used to create a wide range of structural components for NIO’s electric SUV models scheduled to be launched over the next five years.