Adjusted EBITDA for the second quarter of fiscal 2015 was $230 million, a 1% increase compared to $228 million reported for the prior year. The increase was primarily driven by higher shipments and cost benefits from using recycled metal inputs. These favourable drivers were partially offset by continued pricing pressures in the Asian markets, a higher fixed cost base due to expansions ahead of revenue generation, and unfavourable currency fluctuations late in the second quarter.
"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," said Phil Martens, President and Chief Executive Officer for Novelis. "We had record shipments of both can and automotive sheet in the second quarter, even before our new auto capacity in the U.S. and China began contributing to shipments. These auto facilities are now accelerating production to meet increasing customer demand for lightweight vehicles, including the new aluminium-intensive 2015 Ford F-150 pick-up truck."
Shipments of aluminium rolled products increased 7% in the second quarter of fiscal 2015 to 765 kilotonnes compared to 713 kilotonnes in the prior year. For the fourth consecutive quarter, all four operating regions reported an increase in shipments year-over-year.
Shipment growth combined with higher aluminium prices drove a 17% increase in net sales for the second quarter of fiscal 2015 to $2.8 billion as compared to $2.4 billion for the second quarter of fiscal 2014.
Over the past three years, Novelis has invested significantly to capture growth in premium flat rolled products and enhance the sustainability of its products.
To date this fiscal year, the company has:
- Expanded its recycling operations in Brazil and commissioned the world's largest aluminium recycling facility in Germany;
- Grown total shipments through the ramp-up of new rolling capacity in Korea and Brazil;
- Become the only company able to produce automotive sheet in all three of the world's major automobile producing regions - Asia, Europe and North America - with the opening of China's first manufacturing facility for heat-treated aluminium automotive sheet.
"These achievements further demonstrate that Novelis is the global leader in aluminium recycling and the aluminium partner-of-choice for automakers around the world," said Martens. "It's an exciting time at Novelis as we continue to transform our business with a more sustainable focus on growing high recycled content premium products."
Read more here: http://www.novelis.com/en-us/Pages/News-Releases.aspx