Novelis’ net income jumps 33%
Novelis Inc. reported net income from continuing operations increased to $259 million in its third fiscal quarter compared to $195 million in the prior year period.
Excluding special items in both years, third quarter fiscal year 2022 net income from continuing operations increased 15% to $241 million, driven mainly by lower interest expense and unrealised derivative gains in the current year.
Net sales increased 33% to $4.3 billion for the third quarter of fiscal year 2022, compared to $3.2 billion in the prior year period, primarily driven by higher average aluminium prices.
Total flat rolled product shipments were 930 kilotonnes in the third quarter of fiscal year 2022, in line with the prior year period shipments of 933 kilotonnes.
Shipment growth was constrained by the continued semiconductor chip shortage impacting the automotive industry.
Adjusted EBITDA increased 1% to $506 million in the third quarter of fiscal year 2022, compared to $501 million in the prior year period, which included a $25 million customer contractual obligation benefit.
The underlying increase in Adjusted EBITDA is primarily due to favourable product pricing and mix, as well as favourable metal benefits, which mitigated inflationary cost pressures and supply chain disruption-related costs.
Adjusted EBITDA per ton shipped increased to $544 in the third quarter of fiscal year 2022, compared to $537 in the prior year period.
“Our strong third quarter results reflect our team’s ability to deftly navigate headwinds mainly arising from global supply chain disruptions,” said Steve Fisher, President and Chief Executive Officer, Novelis Inc.
“We will continue to manage through these challenges, while keeping our eyes on our strategic growth path and meeting growing demand for high-recycled-content, sustainable aluminium products.”
Since October 2021, Novelis has announced several capital expansion projects aimed at increasing capacity and capabilities and achieving its sustainability goal to become net carbon-neutral by 2050.