Novelis Reports Strong Third Quarter Results

ATLANTA, Feb. 8, 2011 /PRNewswire/ -- Novelis Inc., the world's leading producer of aluminum rolled products, today reported a net loss attributable to its common shareholder of $46 million for the third quarter of fiscal 2011 compared to net income of $68 million for the same period in fiscal 2010.  The net loss for the quarter was primarily due to one-time charges of $74 million associated with the refinancing of the Company's debt as well as $20 million for restructuring activities mainly related to the closure of its Bridgnorth and Aratu facilities.

Shipments of aluminum rolled products totaled 715 kilotonnes for the third quarter of fiscal 2011, an increase of ten percent compared to shipments of 649 kilotonnes in the third quarter of the previous year.  This increase in shipments was driven by strong end-market conditions across all product segments globally, particularly can, automotive and electronics. 

Net sales for the third quarter of fiscal 2011 were $2.6 billion, an increase of 21 percent compared to the $2.1 billion reported in the same period a year ago, the result of higher shipments, conversion premiums and aluminum prices. 

Adjusted EBITDA for the quarter was $238 million, representing a 20 percent increase from adjusted EBITDA of $199 million posted for the same period a year ago.  These operating results were primarily due to strong global market demand, price and mix and effective cost management. 

"These are solid results, especially considering that this is our seasonally low quarter," said Phil Martens, Novelis President and Chief Executive Officer.  "This quarter was particularly significant for us for a number of reasons.  We completed a major refinancing and recapitalization of the business, which positions the Company to significantly invest in the business over the next few years.  We also closed one of our smelters in Brazil and made headway on the closure of Bridgnorth, another underperforming asset.  Both of these closures will increase operating efficiency, reduce costs and help us focus more closely on our core rolling operations.  And lastly, we made progress on our debottlenecking initiatives and Brazil mill expansion."