August 7, 2014 / 11:33 AM / in 3 years

UPDATE 1-Novelis profit more than doubles on higher beverage can sales

(Adds details on results)

Aug 7 (Reuters) - Novelis Inc, the world’s largest producer of rolled aluminum products, reported a 150 percent jump in quarterly profit, helped by higher sales of beverage cans during the 2014 soccer World Cup in Brazil.

The company, a unit of India’s HindalCo Industries Ltd , said shipments of aluminum rolled products rose 9 percent to 770 kilotonnes in the first quarter ended June 30.

Shipments rose in all its four regions - North America, Europe, Asia and South America - for the third straight quarter, the company said.

“Excellent plant productivity, strong winter results in South America boosted by World Cup beverage consumption, and good year-over-year demand trends drove a strong start to the new fiscal year,” Chief Executive Phil Martens said.

Net income attributable to shareholders rose to $35 million from $14 million a year earlier. Excluding items, profit rose 43 percent to $30 million.

Net sales jumped nearly 12 percent to $2.68 billion.

The company had estimated in July that aluminum can sales would increase 35 percent to top two billion over the four weeks of the soccer World Cup.

Novelis has been switching to automotive sheet in the United States from low-margin can sheet capacity to feed burgeoning demand from car makers.

Mertens said on Thursday the first of the company’s new global auto finishing lines was on track to begin shipping in the second half of the fiscal year ending March.

Novelis has said it expects automotive operations to account for about a quarter of its business by the end of the decade. (Reporting by Ashutosh Pandey in Bangalore; Editing by Savio D‘Souza)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below