Atlanta, USA — Novelis, the world leader in aluminum rolling and recycling, today reported net income attributable to its common shareholder of $54 million for the fourth quarter of fiscal year 2014. Excluding certain tax-effected items, net income was $75 million. „Fiscal 2014 was a transitional year for Novelis and we closed it on a strong note,“ said Phil Martens, President and Chief Executive Officer for Novelis. „We completed the majority of our business transformation initiatives to secure our leadership position in flat rolled products for the global automotive and beverage can markets, and enhance our unmatched, low-cost recycling capabilities worldwide. Together these actions are driving both our top and bottom lines.“
The company reported shipments of aluminum rolled products of 753 kilotonnes in the fourth quarter of fiscal 2014, up eight percent compared to the prior year. Every global operating region reported an increase in shipments year-over-year. Higher global shipments were the primary driver behind the four percent increase in adjusted EBITDA versus the prior year to $250 million in the fourth quarter of fiscal 2014.
„While 2014 provided market challenges, particularly lower can sheet pricing and volatile market premiums for primary aluminum, we have positioned the company well for the future. Auto will accelerate this year as our key supplier role to Ford’s new aluminum intensive F-150 program will demonstrate,“ balanced Phil Martens.
The Company noted a number of accomplishments over the past year:
- Generated significant cash flow to fund capital investments;
- Made significant progress on all strategic expansions including the ramp up of rolling production at Brazil and Korea mill expansions and the start of commercial production at US automotive finishing lines;
- Announced incremental investment of $205 million to further expand global auto finishing capacity to approximately 900 kilotonnes annually;
- Expanded recycling facilities and capabilities in all of its operating regions and increased the recycled content in its products by three percentage points to 46 percent for fiscal 2014, continuing toward the Company’s goal of 80 percent recycled content in its products by 2020;
- Launched commercial use of evercan™, the world’s first certified high-recycled content beverage can sheet;
- Demonstrated the leading research & technology capabilities through a 60 percent year over year increase in patent applications and grants;
- Further optimized the Company’s footprint and product portfolio, including the proposed sale of its household foil operations in North America and non-core hydroelectric power generation operations in Brazil.
Adjusted EBITDA for fiscal 2014 was $885 million compared to $961 million reported for the prior year. The decline was primarily due to pricing pressures experienced in the Asian and North American beverage can markets, a higher fixed cost base due to expansions ahead of revenue generation and higher incentive costs, partially offset by higher shipments and benefits from increasing recycled content.
Shipments of aluminum rolled products totaled 2,895 kilotonnes in fiscal 2014, an increase of four percent compared to 2,786 kilotonnes reported in fiscal 2013. Net sales in fiscal 2014 were $9.8 billion, which is flat compared to the prior year resulting from higher shipments partially offset by a ten percent decrease in average aluminum prices and lower conversion premiums.
Source: Novelis Inc. / PRNewswire