Multinational aluminium recycler Novelis has reported a 52% fall in profits for the second quarter of 2012/13 compared with the same period last year.
In its Q2 results, the firm reported net income of $62m (£38.7m) compared to $129m in 2011/12, mainly driven by lower Adjusted EBITDA and a tax benefit last year that did not reoccur.
Adjusted EBITDA was $277m for Q2, compared to $301m last year, primarily a result of higher employment and project start-up costs associated with expansions.
Net sales were $2.4bn, down 15% from $2.9bn in 2011/12 as a result of a 20% decline in aluminium prices.
The firm said it had shipped 719kt of aluminium rolled products over the period down slightly from 720kt last year.
- Cash flow before CapEx of $153m
- Liquidity of $919m
President and CEO Phil Martens said: “As expected, we had a strong second quarter with Adjusted EBITDA up seven percent sequentially, and are operating at or near capacity in all of our regions,”
“The actions we’ve taken over the last few years have strengthened our operations and will help better position us as we continue to transition the business for future growth.
“Although we see near-term pressure due to a slowdown in the global economy, we continue to believe in the strong long-term growth outlook for can, automotive, and specialties and expect our expansions to deliver strong EBITDA contributions once they are fully commissioned.”