Global aluminium rolling and recycling company Novelis reported a loss of $13 million (£8.6 million) in the second quarter of its 2015/16 financial year.
Profits were hit by an extended metal lag due to falling prices and it not being able to hedge local markets, as well as less favourable recycling benefits due to lower aluminium prices as compared to the previous fiscal year.
It also had additional costs as a result of the start-up and support of new automotive finishing and recycling capacity.
However, excluding special items, net income was at $25 million compared to $36 million in the same quarter in its 2015 financial year.
The good news for Novelis was that adjusted EBITDA was $236 million in Q2 up 7% compared to $221 million in the same quarter last year.
This increase was driven by higher shipments of premium automotive and beverage can sheet, although it was offset by the lower prices making the benefits of recycling less pronounced.
Novelis president and chief executive Steve Fisher said: “Our focus on growing premium can, automotive and high-end specialty shipments, managing costs and reducing working capital is delivering results.
“We are leveraging new assets, reducing start-up costs, and building momentum in our expanded automotive and can sheet business.
“We are now commissioning our two most recently constructed automotive lines in the US and Germany and solidifying our position as the global leader in aluminium flat rolled products.”