January 24, 2017 6:52 PM ET

Metals and Mining

Company Overview of Novelis Inc.

Company Overview

Novelis Inc. produces and sells aluminum rolled products. The company operates through four segments: North America, Europe, Asia, and South America. It produces aluminum sheet and light gauge products primarily for use in the beverage and food cans, electronics, containers and packaging, automotive and other transportation, architectural, and other industrial applications. The company was founded in 2004 and is headquartered in Atlanta, Georgia. Novelis Inc. is a subsidiary of AV Metals Inc.

3560 Lenox Road

Suite 2000

Atlanta, GA 30326

United States

Founded in 2004

11,970 Employees

Phone:

404-760-4000

Key Executives for Novelis Inc.

Chief Executive Officer and President
Age: 45
Chief Financial Officer and Senior Vice President
Senior Vice President and President of Novelis North America
Age: 59
Senior Vice President and President of Novelis South America
Age: 58
Senior Vice President and President of Novelis Asia
Age: 50
Compensation as of Fiscal Year 2016.

Novelis Inc. Key Developments

Novelis Inc to Refinance $1.8 Billion Term Loans

Novelis Inc. is refinancing $1.8 billion of its term loans for a period of five and a half years to lower its borrowing costs. The syndication for this refinancing of these credit lines technically called term loan B is set to attract bank investors from the Asian, Middle Eastern, European and US bank loan markets. High liquidity in the loan markets together with strong support from relationship banks for Aditya Birla Group will help the company tap a new set of investors for its tem loans away from the traditional US markets. As against the prevailing prices of Libor +325 bps, the new syndication is getting priced at a margin of Libor plus 185 bps, maintaining its original maturity profile. Secondly, there are term loan B facilities 7 year papers that are seldom amortised. Third are the revolver facilities or working capital loans but unlike in India where these are on shorter tenors, in US these are usually for a 5 year period and backed by current assets.

Novelis Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended September 30, 2016; Provides Capital Expenditure Guidance for the Fiscal Year 2017

Novelis Inc. reported unaudited consolidated earnings results for the second quarter and six months ended September 30, 2016. For the quarter, the company reported net sales of $2,361 million against $2,482 million a year ago. Loss before income taxes was $62 million against $16 million a year ago. Net loss attributable to the company’s common shareholders was $89 million against $13 million a year ago. EBITDA was $107 million against $153 million a year ago. Adjusted EBITDA was $256 million against $182 million a year ago. Net income attributable to the company’s common shareholder, excluding special items was $60 million against $25 million a year ago. Excluding metal price lag in both periods, adjusted EBITDA increased 14% to $270 million against $236 million a year ago. The increase was primarily driven by productivity gains, better metal mix, and favorable foreign exchange gains, partially offset by higher employment costs. Net sales decreased 5%. This was driven by lower average aluminum prices and a 2% decline in total shipments of rolled aluminum products to 773 kilotonnes, partially offset by the favorable impact from strategic shift to higher conversion premium products including a 12% increase in automotive sheet shipments to record levels. The company reported free cash flow of $44 million for the second quarter of fiscal 2017 as compared to $140 million in the prior year, with the reduction due primarily to the timing of working capital and interest payments. These factors are partially offset by stronger EBITDA performance in the current year and reduced capital expenditures of $46 million as compared to $75 million in the prior year period. For the six months, the company reported net sales of $4,657 million against $5,116 million a year ago. Loss before income taxes was $2 million against $61 million a year ago. Net loss attributable to the company’s common shareholders was $65 million against $73 million a year ago. Net cash used in operating activities was $27 million against $63 million a year ago. Capital expenditures were $90 million against $204 million a year ago. EBITDA was $336 million against $273 million a year ago. Adjusted EBITDA was $511 million against $309 million a year ago. Net income attributable to the company’s common shareholder, excluding special items was $93 million against $49 million a year ago. Negative free cash flow was $102 million against $285 million a year ago. Adjusted EBITDA excluding metal price lag was $538 million against $448 million a year ago. The company expects to spend approximately $250 million on capital expenditures in fiscal year 2017, with the vast majority planned as maintenance spend. Given strong year-to-date results, new bonds, cash interest savings and the more favorable outlook on working capital opportunities, the company increasing fiscal 2017 free cash flow guidance from $250 million to a range of $300 million to $350 million for the full year.

Novelis Inc. to Report Q2, 2017 Results on Nov 07, 2016

Novelis Inc. announced that they will report Q2, 2017 results at 4:46 PM, GMT Standard Time on Nov 07, 2016

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