Atlanta-based Novelis has reported net income of $148 million for fiscal year 2015, a 42 percent increase from the $104 million reported in fiscal 2014. Excluding certain tax-effected items, its net income increased 4 percent to $161 million in fiscal 2015, the company reports.
“Fiscal 2015 was a successful year as we grew our portfolio of high-recycled, premium products,” says Steve Fisher, interim president and CEO for Novelis. “We achieved record total shipments, drove benefits from expanding low-cost recycling capabilities worldwide and grew automotive shipments to record levels, strengthening our leadership position in this fast growing segment.”
Fisher says the strengthening U.S. dollar and declining local market metal premiums in the fourth quarter tempered results.
Novelis reports adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) grew 2 percent to $902 million in fiscal 2015 compared with the $885 million reported in fiscal 2014. The increase was primarily driven by higher shipments, favorable product mix in light of a “strategic shift to grow automotive shipments” and cost benefits from using a higher percentage of recycled metal inputs, according to the company. Partially offsetting these gains were higher costs associated with the startup and support of new capacity, lower pricing in some Asian markets, unfavorable foreign exchange and metal price lag, Novelis adds.
Fiscal 2015 revenue increased 14 percent to $11.1 billion. Novelis says its revenue growth was driven by a 5 percent increase in shipments of rolled aluminum products to 3 million metric tons in fiscal 2015. Higher average metal prices in fiscal year 2015 also contributed to the increase in revenue.