Global aluminium producer and recycler Novelis has reported an 18% fall in revenue for the first quarter of 2013.
Net sales fell to $2.6bn (£1.7bn) from $3.1bn in the same period last year as volumes fell and aluminium prices declined by $626 per tonne on average.
The company reported net income rose 18.1% to $91m from $77m in Q1 2012. Adjusted EBITDA (income before interest and taxes and depreciation and amortization) however fell 15% year-on-year to $259m. EBITDA was up 11% sequentially, driven by strengthening demand, the firm said.
Phil Martens, president and CEO of the Atlanta-based firm, said: “As expected, EBITDA increased sequentially as we saw market demand firm in most of our regions but decreased on a year-over-year basis, primarily due to the loss of some can business in North America, a meaningful decrease in scrap benefits as well as some production and supply chain disruptions we faced early in the quarter.
“Despite this, we’ve successfully offset the lost volumes going forward and resolved these production issues. In fact, we ended the first quarter very strong with June operating at levels not seen in nearly a year.”
Novelis said shipments of aluminum rolled products for the period were 722kt down from 767kt in 2012.
Novelis Recycling in the UK operates Europe’s biggest aluminium can recycling plant in Cheshire. The company is a subsidiary of the Indian conglomerate Aditya Birla Group.