JANUARY 2012

Novelis reports strong second quarter fiscal year results

Novelis Inc. reported net income attributable to its common shareholder of $120 million for the second quarter of fiscal 2012 compared to net income of $62 million for the same period in fiscal 2011.

Shipments of aluminum rolled products totaled 720 kilotons for the second quarter of fiscal 2012, a decrease of 2 percent compared to shipments of 737 kilotons in the second quarter of the previous year. This slight decrease in shipments was driven by economic uncertainty in the United States and Europe and unseasonably cool and wet weather across a number of the Company’s operating regions which resulted in customer destocking in the quarter.

Net sales for the second quarter of fiscal 2012 were $2.9 billion, an increase of 14 percent compared to the $2.5 billion reported in the same period a year ago, mainly the result of strong conversion premiums and higher average aluminum prices.

Adjusted EBITDA for the quarter was $301 million, representing a 3 percent increase from adjusted EBITDA of $291 million posted for the same period a year ago. These operating results were primarily due to strong conversion premiums and effective cost management.

The company reported pre-tax income of $123 million for the second quarter of fiscal 2012, a decrease when compared to the $129 million pre-tax income reported in the same period of fiscal 2011. Excluding restructuring charges, unrealized gains/losses on derivatives, loss on sale of assets and gain on litigation, adjusted pre-tax income decreased 7 percent. “These are very strong operating results, considering shipments were down 2 percent year-over-year and net interest was up $36 million due to higher interest expense resulting from our debt issuance and refinancing in the third quarter of 2011,” said Steve Fisher, chief financial officer for Novelis.