SMM8, March 8 / PRNewswire-FirstCall-Asianet / Novelis, maker of beverage aluminum cans and automotive sheet metal, said Tuesday that its net profit rose 10 percent in the first quarter of fiscal 2019. The subsidiary of the local aluminum and copper giant reported net profit of $113 million this year, compared with $103 million in the same period last year. Adjusted earnings per tonne before depreciation and amortisation rose 13 per cent to $417. It is mainly affected by the increase in the average aluminum price and the increase in shipments.
And in mid-July, Hindalco Industries Ltd., the parent company of Novelis, Has agreed to buy Aleris Corp, an American aluminium producer, for about $2.6 billion to help Hindalco's controlling shareholder, Mal Mangalam Burra, broaden its path in the auto industry. Novelis has made an offer for Aleris. The company said the deal would be done entirely through borrowing financing. The deal has yet to be approved by regulators and is expected to close in the next 9 to 15 months. Aleris produces aluminum plate rolling products at its production bases in North America, Europe and China. Prior to that, Hindalco had planned to invest about $180 million in China, double aluminum production capacity and expand production in the United States, with an investment of about $300m in car plants in Kentucky. Hindalco said it wanted to take advantage of the growing trend in global demand for automotive metals, which it expects to nearly triple over the next eight years.
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