Novelis plans expansion
Novelis says it plans to continue its global expansion as it announced strong full year results.
CEO Phil Martens said it would use its strong operating cash flow to fund $1.5bn in capital expenditures over the next three years.
These include its rolling mill expansion at Pinda, Brazil, expansion in Korea and its automotive expansion in North America.
“Going forward, we see continued strong demand in the aluminum flat rolled products industry. As a result of our solid financial position, we are now able to invest strategically to capitalize on this future growth and support our customers' increasing FRP demand,” said Mr Martens
Adjusted EBITDA for the year was a record $1072bn, a 42% increase from adjusted EBITDA of $755m the year before.
Rolled aluminium products shipments totaled 2.96Mt for fiscal 2011, a 10% increase compared to shipments of 2.70Mt the previous year. For Q4, shipments were 771kt, an increase of 8% from shipments of 716Kt in Q4 the previous year.
This increase in shipments for both the quarter and the year were driven by strong end-market conditions across all product segments globally, particularly can, automotive and electronics.
Net sales for fiscal 2011 were $10.6bn, an increase of 22% compared to the $8.7bn reported for fiscal year 2010. Net sales for this year's Q4 were $3.0bn, an increase of 22% compared to the $2.4bn reported in the same period a year ago, the result of higher shipments, conversion premiums and aluminum prices.