On Tuesday, Novelis raised its estimated cash-flow hit to $1.7 billion. “This increase primarily reflects higher repair costs versus our preliminary estimates and incremental costs to minimise customer disruption,” CEO Steve Fisher said.
JAN-MAR EARNINGS
Novelis incurred a net loss of $84 million for the quarter, compared to a net profit of $294 million a year earlier. The fires at the Oswego unit hit rolled product shipments by 73 kilotonnes. As a result, rolled product shipments fell by 12% on year to 844,000 tonnes.
Net sales for the quarter rose 4% on-year to $4.8 billion, largely on account of higher prices of aluminium, partially offset by lower output. Adjusted earnings before interest, tax, depreciation and amortisation or Ebitda for the quarter fell 3% on-year to $459 million.
“We begin the new fiscal year energised by the strength of the underlying business and confident in our ability to capture strong market demand for high-recycled-content, low carbon aluminium,” said Fisher.