Aluminium rolling and recycling company Novelis has announced solid second quarter earnings for its 2015 fiscal year.
Net income increased by 65 per cent against the prior year to $38 million (£24 million) and adjusted EBITDA was up 1 per cent to $230 million with the increase primarily driven by higher shipments and cost benefits from using recycled metal inputs.
However, these drivers were partially offset by continued pricing pressures in Asian markets, a higher fixed cost base due to expansions ahead of revenue generation, and unfavourable currency fluctuations late in Q2.
Novelis president and chief executive Phil Martens said: “Our solid earnings are a result of the execution of our long-term strategy to capture growth through added capacity and to lower costs through increased use of recycled materials.
“We had record shipments of both can and automotive sheet in the second quarter, even before our new auto capacity in the US and China began contributing shipments.”