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Lower aluminium prices contribute to Novelis earnings fall

Date: Wed, 15 May 2013 | Author: Paul Sanderson

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Novelis has reported lower earnings in its latest results, with lower aluminium prices contributing to the fall.

However, it has also reported in its annual results for the fiscal year 2013 an increase in demand in the final quarter.

While net income (excluding certain items) increased to $241 million in 2013, from $218 million in 2012, following a restructuring.

Earnings before tax were $961 million for the financial year ending in 2013, compared to $1,053 in 2012.

It said that the year-on-year decrease in earnings was mostly due to disruptions related to the implementation of enterprise resource planning system in two North American plants in the third quarter, pricing pressures in several operating regions, lower aluminium prices, an impact from a fire at a North American plant in the fourth quarter and higher pension expenses.

Novelis president and chief executive Phil Martens said: “As expected, we saw a sequential recovery from our seasonally low third quarter with EBITDA increasing 30 per cent, driven by strong demand, good cost control and higher operating efficiencies.

“And despite multiple unexpected headwinds in the second half of the year, as a result of prudent actions and fiscal discipline, the company was able to achieve EBITDA of nearly $1 billion for the year.

“This was accomplished while commissioning two large-scale expansions, closing or divesting underperforming and non-core assets and making good progress on several ongoing global rolling, finishing and recycling expansions. I am proud of our accomplishments this year as we produced solid results in a transformational year marked by heavy investment.”

Category: Recycling
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