Aluminium rolling and recycling company Novelis saw its net income rise by 65 per cent in a year, increasing from $23 million (14.5 million) to $38 million (£24 million).
The figures were announced in the second quarter results for the fiscal year 2015, which were released today (11 November).
According to the figures, reported net income attributable to Novelis’ common shareholder for the second quarter of fiscal year rose by 65 per cent compared to the second quarter of fiscal year 2014. Excluding certain tax-effected items, net income was $42 million (£26.5 million), up 14 per cent compared to the second quarter of fiscal year 2014.
Sales also increased, rising by 17 per cent on the previous year, to $2.8 billion (£1.7 billion), with shipment increasing by seven per cent to 765 kiltonnes.
As such, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the second quarter of fiscal 2015 was $230 million (£145 million), a one per cent increase compared to $228 million (£144 million) reported for the prior year. The increase was primarily driven by higher shipments and cost benefits from using recycled metal inputs. These drivers were partially offset by continued pricing pressures in the Asian markets, a higher fixed cost base due to expansions ahead of revenue generation, and unfavorable currency fluctuations late in the second quarter.
Phil Martens, President and Chief Executive Officer for Novelis, said: "Our solid earnings are a result of the execution of our long-term strategy to capture growth through added capacity and to lower costs through increased use of recycled materials.
"We had record shipments of both can and automotive sheet in the second quarter, even before our new auto capacity in the U.S. and China began contributing to shipments. These auto facilities are now accelerating production to meet increasing customer demand for lightweight vehicles, including the new aluminum-intensive 2015 Ford F-150 pick-up truck."
Find out more about the Novelis finanical results.
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How will the government and DMOs address the challenges of including glass in DRS while ensuring a level playing field across the UK?
There's no easy solution to include glass in the DRS while maintaining a level playing field. Potential approaches include a phased introduction of glass, potentially with higher deposits to reflect its logistical challenges. The government and DMOs could incentivise innovation in glass packaging design and subsidise dedicated return points for glass-handling. Exemptions for smaller businesses unable to handle glass might also be necessary. Any successful solution will likely blend several approaches. It must address the differing priorities of devolved administrations, balance environmental benefits with logistical and cost implications, and be supported by robust consumer education campaigns emphasizing the importance of glass recycling.