reports record financial results
Novelis Inc. reported net income attributable
to its common shareholder of $50 million for the first quarter
of fiscal year 2011. Adjusted EBITDA and Liquidity reached record
levels in the quarter.
“This was a great quarter for the company for a number of reasons.
In addition to record results, we received a three-notch rating
upgrade on our senior unsecured bonds to B1 from Moody’s,” said
Phil Martens, Novelis president and COO.
Shipments of aluminum rolled products totaled 746 kilotonnes
for the first quarter of fiscal 2011, an increase of 15 percent
compared to shipments of 650 kilotonnes in the first quarter
of the previous year, driven by stronger end-market conditions
across all four regions. This represents the second consecutive
quarter since the economic downturn that shipments grew in all
Net sales for the first quarter of fiscal 2011 were $2.5 billion,
an increase of 29 percent compared to the $2.0 billion reported
in the same period a year ago, a result of higher aluminum prices,
conversion premiums and strength in the Company’s end-markets.
Adjusted EBITDA for the quarter was a record $263 million, representing
a 112 percent increase from adjusted EBITDA of $124 million posted
for the same period a year ago. This represents the highest quarterly
adjusted EBITDA in the Company’s history. These record operating
results were primarily due to strong global market demand as
well as effective cost management and efficiency gains.
Liquidity improved to approximately $1.1 billion at the end of
the first quarter of 2011, an increase of 136 percent from $446
million in liquidity reported for the same period in the previous
year and a slight increase compared to the fourth quarter of
For the first quarter of fiscal 2011, free cash flow was $34
million, representing an increase from the $20 million reported
in the first quarter of the previous year and a decrease compared
to the $213 million reported in the fourth quarter of fiscal