Novelis reported net income grew to $46 million for the third quarter of fiscal year 2015, up significantly from the $13 million reported in the third quarter of fiscal year 2014.
Excluding certain tax-effected items in both periods, net income is $60 million for the third quarter of fiscal 2015, more than double the $23 million reported in the prior year period.
Adjusted EBITDA for the third quarter of fiscal 2015 was $236 million, a 16 percent increase compared to the $203 million reported for the prior year. The increase was primarily driven by higher shipments as a result of strategic capacity expansions in Asia and South America, favorable product mix, and cost benefits from using recycled metal inputs.
Third quarter fiscal 2015 revenues climbed 18 percent to $2.8 billion compared to $2.4 billion for the third quarter of fiscal 2014. Revenue growth was driven by a 5 percent increase in shipments of rolled aluminum products to 757 kilotonnes for the third quarter of fiscal 2015 compared to 721 kilotonnes in the prior year period. All four operating regions reported an increase in shipments year-over-year. Higher metal prices also contributed to the increase in revenue.
The company reported negative free cash flow of $12 million in the third quarter, a $49 million increase. At the end of the third quarter, the company reported liquidity of $839 million.
Published in the April 2015 Edition of American Recycler News