Atlanta-based Novelis Inc., an aluminum rolling and recycling company, has reported net income of $101 million for the first quarter of fiscal year 2018, compared with net income of $24 million in the prior year period.
Excluding tax-affected special items, the company reports net income of $103 million in the first quarter of fiscal 2018, up from $33 million reported in the first quarter of fiscal 2017. The year-over-year increase in net income is driven primarily by higher EBITDA (earnings before interest, taxes, depreciation and amortization) and lower interest expense following debt refinancing actions in fiscal 2017.
“Our automotive strategy, enhanced operational performance and strong customer relationships resulted in record first quarter shipments while also increasing adjusted EBITDA per ton,” says Steve Fisher, president and CEO of Novelis. “Leveraging our unmatched global manufacturing footprint, innovative technology and closed-loop recycling systems, Novelis has become a preferred choice for automotive aluminum sheet. As more and more automakers turn to aluminum solutions to produce the next generation of vehicles, we are actively looking at opportunities to increase capacity to support our customers and reinforce our leadership position in this growing market.”
Adjusted EBITDA, defined excluding metal price lag, increased 8 percent to $289 million for the first quarter of fiscal 2018 from $268 million in the prior year period, primarily as a result of higher shipments, ongoing operational improvements, and favorable product mix, partially offset by pricing pressures in beverage can, according to Novelis.
Net sales increased 16 percent to $2.7 billion for the first quarter of fiscal 2018. Novelis says this was driven by a 4 percent increase in total shipments of flat rolled products to 785 kilotons, including a 16 percent increase in shipments of higher conversion premium automotive products, as well as higher average aluminum prices.
The company reported negative free cash flow of $77 million for the first quarter of fiscal 2018 as compared with negative $146 million in the prior year period. The $69 million improvement in free cash flow over the prior year was primarily a result of higher EBITDA and lower cash interest payments, Novelis says. Capital expenditures in the first quarter of fiscal 2018 were $39 million, $5 million lower than the prior year.
Devinder Ahuja, senior vice president and chief financial officer for Novelis, adds, “Our continued strong financial performance in the first quarter, following a record year in fiscal 2017, provides a clear path to achieve another record year for adjusted EBITDA and free cash flow in fiscal 2018.”
As of June 30, 2017, Novelis reported a liquidity position of $1.2 billion.
No more results found. Excluding tax-affected special items, the company reports net income of $103 million in the first quarter of fiscal 2018, up from $33 million reported in the first quarter of fiscal 2017. The year-over-year increase in net income is driven primarily by higher EBITDA (earnings before interest, taxes, depreciation and amortization) and lower interest expense following debt refinancing actions in fiscal 2017.
“Our automotive strategy, enhanced operational performance and strong customer relationships resulted in record first quarter shipments while also increasing adjusted EBITDA per ton,” says Steve Fisher, president and CEO of Novelis. “Leveraging our unmatched global manufacturing footprint, innovative technology and closed-loop recycling systems, Novelis has become a preferred choice for automotive aluminum sheet. As more and more automakers turn to aluminum solutions to produce the next generation of vehicles, we are actively looking at opportunities to increase capacity to support our customers and reinforce our leadership position in this growing market.”
Adjusted EBITDA, defined excluding metal price lag, increased 8 percent to $289 million for the first quarter of fiscal 2018 from $268 million in the prior year period, primarily as a result of higher shipments, ongoing operational improvements, and favorable product mix, partially offset by pricing pressures in beverage can, according to Novelis.
Net sales increased 16 percent to $2.7 billion for the first quarter of fiscal 2018. Novelis says this was driven by a 4 percent increase in total shipments of flat rolled products to 785 kilotons, including a 16 percent increase in shipments of higher conversion premium automotive products, as well as higher average aluminum prices.
The company reported negative free cash flow of $77 million for the first quarter of fiscal 2018 as compared with negative $146 million in the prior year period. The $69 million improvement in free cash flow over the prior year was primarily a result of higher EBITDA and lower cash interest payments, Novelis says. Capital expenditures in the first quarter of fiscal 2018 were $39 million, $5 million lower than the prior year.
Devinder Ahuja, senior vice president and chief financial officer for Novelis, adds, “Our continued strong financial performance in the first quarter, following a record year in fiscal 2017, provides a clear path to achieve another record year for adjusted EBITDA and free cash flow in fiscal 2018.”
As of June 30, 2017, Novelis reported a liquidity position of $1.2 billion.