Novelis Inc., a leader in aluminum rolling and recycling, reported net income attributable to its common shareholder of $176 million in the fourth quarter of fiscal year 2021, and net income from continuing operations of $180 million, up 179 percent and 186 percent, respectively, versus the prior year.
Net income attributable to its common shareholder was $236 million for the full fiscal year 2021, and net income from continuing operations was $458 million, down 44 percent and up nine percent, respectively, versus the prior year.
Excluding special items in both years, fourth quarter fiscal 2021 net income from continuing operations was $172 million, up 12 percent versus the prior year driven mainly by higher after-tax Adjusted EBITDA partially offset by higher depreciation and amortization associated with the acquired Aleris business. For the full fiscal year, net income excluding special items decreased five percent versus the prior year to $561 million affected by pandemic-related impacts on first quarter profitability.
“Guided by our purpose and driven by the resilience of our people and the strength of our partnerships, we safely navigated this extraordinary year to achieve outstanding results,” said Steve Fisher, president and chief executive officer, Novelis Inc. “With the ongoing successful integration of Aleris, a diverse and innovative product portfolio, and unmatched geographic footprint, we have proven our ability to deliver sustainable aluminum solutions to customers in a way that resulted in record financial performance. Looking forward we will continue to pursue growth opportunities through organic investment, while working towards creating a more sustainable and circular future for our business, industry, and society.”
Key achievements in fiscal 2021 include:
•Completed the acquisition of Aleris, generating initial run-rate integration cost synergies of $79 million and contributing to record full year shipments of 3.6 million tonnes. Adjusted EBITDA of $1.7 billion, net income from continuing operations of $458 million, and free cash flow from continuing operations of $740 million;
•Expanded sustainability platform by committing to reduce their carbon footprint 30 percent by 2026 and become a net carbon-neutral company by 2050 or sooner;
•Increased recycled content in their products to 61 percent in fiscal 2021;
•Strengthened their industry leading automotive business with the commissioning of new auto finishing capacity in the U.S. and China, co-founding the innovative
Alumobility ecosystem and offering an ultra-high-strength 7-series aluminum alloy to advance the continued adoption of aluminum in vehicles;
On April 14, 2020, Novelis closed its acquisition of Aleris Corporation. The results from continuing operations reported today for the quarter and fiscal year ending March 31, 2021 include results of the acquired business from the date of closing. Results related to the Duffel and Lewisport plants, divested in mid-fiscal 2021, are reflected as results from discontinued operations. The company filed a form 8-K/A with the Securities and Exchange Commission on June 30, 2020, providing historical and pro forma financial information related to the acquisition.
Novelis is focused on the safe integration of Aleris’ continuing operations to drive a number of strategic benefits, including more than $180 million in potential run-rate synergies that have been identified. In the period between closing and the end of fiscal 2021, we achieved $79 million of run-rate cost synergies. Novelis’ acquisition of Aleris is expected to provide a strong pro-forma financial profile, many strategic benefits including securing an integrated manufacturing footprint in China, further portfolio diversification with the addition of aerospace and building and construction, as well as new technology and operational capabilities.