Novelis reports record financial results

Novelis Inc. reported net income attributable to its common shareholder of $405 million for fiscal year 2010, a significant increase when compared to the net loss of $1.9 billion reported for the same period a year ago.

Shipments of aluminum rolled products totaled 2,708 kilotonnes for fiscal 2010, a decrease of 2 percent compared to shipments of 2,770 kilotonnes in the previous year, driven by softer end-market conditions in most regions during the first half of the year.

For the fourth quarter, shipments were 716 kilotonnes, an increase of 18 percent from shipments of 605 kilotonnes in the fourth quarter of the previous year, primarily due to strong growth in North America, Europe and Asia. The fourth quarter of 2010 represented the first quarter since the economic downturn that shipments grew in all four regions year-over-year.

Net sales for fiscal 2010 were $8.7 billion, a decrease of 15 percent compared to the $10.2 billion reported in the same period a year ago, a result of lower aluminum prices and softness in the company’s end-markets in the first half of the year.

Net sales for this year’s fourth quarter were $2.4 billion, a 25 percent increase when compared to the fourth quarter of last year, driven primarily by higher aluminum prices and stronger demand.

Liquidity improved to over $1 billion at the end of fiscal year 2010, representing an increase of 163 percent from $390 million in liquidity reported at the end of fiscal year 2009.

For fiscal 2010, free cash flow was $355 million, representing a substantial increase when compared to the negative free cash flow of $352 million for fiscal 2009, driven by stronger performance, working capital improvements and controlled capital expenditure levels.