Novelis reports second quarter year 2013 results
Novelis, a global aluminum recycling and rolling company, reported net income attributable to its common shareholder of $49 million for the second quarter of fiscal 2013. Excluding tax-effected special items in both periods, net income for the second quarter
of 2013 was $62 million, compared to $129 million for the same period in 2012 mainly driven by lower Adjusted EBITDA and a tax benefit in the prior year that did not reoccur.
Adjusted EBITDA was $277 million for the second quarter of 2013, compared to the Company’s second highest EBITDA of $301 million reported for the same quarter in 2012, primarily a result of higher employment and project start-up costs associated with its expansions.
“As expected, we had a strong second quarter with adjusted EBITDA up seven percent sequentially, and are operating at or near capacity in all of our regions,” said Phil Martens, Novelis president and chief executive officer. “The actions we’ve taken over the last few years have strengthened our operations and will help better position us as we continue to transition the business for future growth. Although we see near-term pressure due to a slowdown in the global economy, we continue to believe in the strong long-term growth outlook for can, automotive and specialties, and expect our expansions to deliver strong EBITDA contributions once they are fully commissioned.”
Shipments of aluminum rolled products totaled 719 kilotons for the second quarter of fiscal 2013, flat compared to shipments of 720 kilotons for the same period last year.
Net sales for the second quarter of fiscal 2013 were $2.4 billion, a 15 percent decrease compared to the $2.9 billion reported in the same period a year ago. This decrease was mainly the result of a 20 percent decline in average aluminum prices when compared to the previous year.
For the second quarter of fiscal 2013, Novelis reported liquidity of $919 million. “Our liquidity was very strong. In the third quarter, our liquidity will be pressured by a few factors, mainly the semi-annual bond interest payment and our aggressive capital expenditures program,” said Steve Fisher, SVP and chief financial officer of Novelis. Free cash flow was a negative $25 million for the second quarter of 2013, primarily due to capital investments of $178 million.