Novelis' Net Sales Surged 20% in Fiscal 2018

SEATTLE (Scrap Monster): Georgia, Atlanta-headquartered Novelis Inc. has reported record results for the fourth quarter and for the entire fiscal year 2018 ended March 31^st this year. The company posted significant jump in adjusted EBITDA, net sales and net income. The total shipments witnessed notable improvement, aided by strong growth in automotive shipments. The company reported strong liquidity position of $1.9 billion as at the end of fiscal 2018.

Higher average aluminum prices and increased shipments to automotive sector resulted in 17% jump in net sales to $3.1 billion during Q4. The shipments of flat rolled products increased marginally by 2%. The adjusted EBITDA during the quarter surged higher by 9% to $319 million. The net income attributable to shareholders was $106 million for the fourth quarter of fiscal 2018.

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During the full year fiscal 2018, net sales grew by 20% to $11.5 billion. The total shipments of flat rolled products surged higher by 4%. Share of automotive sheets in total shipments increased from 18% in prior fiscal year to 20% this year. The adjusted EBITDA was up by12% at $1,215 million in fiscal 2018. Meantime, capital expenditures too increased slightly over the previous year from $224 million to $226 million.

The full fiscal year cash flow increased 12% to $406 million. Devinder Ahuja, Senior Vice President and Chief Financial Officer stated that the company will utilize the strong cash flow to make several strategic investments in fiscal 2019, especially in the automotive business, which continues to see robust demand growth.

Steve Fisher, President and CEO, Novelis, Inc. noted that the company completed a joint venture to establish Ulsan Aluminum during fiscal 2018. In addition to expanding existing U.S. facilities, the company has agreed to acquire assets in Sierre, Switzerland. Novelis has increased recycled content from 55% to 57% over the year. The company will continue to strengthen its automotive portfolio by making strategic investments, Fisher added.