Novelis logs 18% decline in Q2 net profit

7 Nov 2024 , 09:20 AM

Novelis, a Hindalco company, reported an 18% drop in net income for the second quarter, as the recycled aluminium products producer was impacted by production disruptions at its Sierre factory in Switzerland following heavy flooding.

The company reported a net income of $128 Million for the three months ending September 30, a decrease of 18% from the same time last year.

The current period includes $61 Million in charges for production disruptions in Sierre, Switzerland, as well as increased restructuring and impairment costs and worse operating performance.

These charges were somewhat mitigated by an improvement in metal price lag and unrealised derivatives over the previous year.

Excluding extraordinary factors, net income was $179 Million, down 1% year on year.

The company’s adjusted EBITDA was $462 Million, a 5% decline from the second quarter of the prior year. This was mostly due to a less favourable metal benefit from a quick increase in aluminium scrap prices, an unfavourable product mix, and a $25 Million flood-related impact at Sierre.

Rolled product shipments totalled 945 kilotonnes, up 1% from the previous year, while adjusted EBITDA per tonne shipped fell by 6% to $489.

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