Novelis, the world leader in aluminum rolling and recycling, has reported record results for the fourth quarter and fiscal year 2017 with significant year-over-year increases in Adjusted EBITDA, net income, free cash flow and automotive sheet shipments.
This strong performance was driven by Novelis' focused strategy to improve operational efficiencies and increase shipments of premium products, resulting in fiscal 2017 net income attributable to its common shareholder of $47 million for the fourth quarter and $45 million for the full year.
Excluding tax-effected special items in all periods, Novelis grew its fourth quarter fiscal 2017 net income 46 percent to $73 million, and increased full year net income by 78 percent to $233 million.
The increase in both fourth quarter and full year net income reflects the significant improvement in adjusted EBITDA, as well as lower interest expense, a result of the company's long-term debt refinancing actions during fiscal 2017.
"By consistently executing our strategy and staying focused on business fundamentals, we have driven value for our stakeholders and are able to better serve our customers," said Steve Fisher, President and Chief Executive Officer for Novelis. "This year's record performance provides us with a blueprint for sustainable results and the strategic flexibility to enhance our leadership position in the industry."
Increased Adjusted EBITDA per ton, excluding metal price lag, by $45 to $354 per ton.
Refinanced $2.5 billion of senior notes and a $1.8 billion term loan, reducing annual cash interest by $79 million and extending debt maturity profile.
Improved metal mix by increasing recycled inputs from 53 percent to 55 percent for the full year.
Achieved record automotive sheet shipment levels as a result of the seamless ramp-up of all new finishing lines to support the new Ford F-Series Super Duty line of trucks in North America, the success of Jaguar Land Rover's new aluminum-intensive vehicles in Europe, and the Cadillac CT6 and Jaguar XFL in China.
Signed agreement with next-generation car company NIO to provide innovative aluminum solutions for its fleet of smart, high-performance, premium aluminum-intensive electric vehicles to be launched over the next five years.
Fourth Quarter Fiscal 2017 Results
Net sales increased nine percent to $2.6 billion for the fourth quarter of fiscal 2017, driven by higher average aluminum prices and increased shipments of higher conversion premium products, including a 26 percent increase in automotive shipments.
Total shipments of rolled aluminum products were flat year-over-year at 789 kilotonnes.
Adjusted EBITDA for the fourth quarter of fiscal 2017 increased to $292 million from $270 million. There was no metal price lag in the current year period.
Excluding $7 million of negative metal price lag in the prior year, adjusted EBITDA increased five percent. Higher automotive sheet shipments, operating efficiencies, lower metal cost, and favorable currency were partially offset by higher employment cost and lower prices on some can and specialty products.
Novelis Inc. is the global leader in aluminum rolled products and the world's largest recycler of aluminum. The company operates in 10 countries, has approximately 11,000 employees and had $10 billion in revenue for its 2017 fiscal year.
Novelis supplies premium aluminum sheet and foil products to transportation, packaging, construction, industrial and consumer electronics markets throughout North America, Europe, Asia and South America.