May, 8, 2019 - Novelis Inc., the world leader in aluminum rolling and recycling, today reported record results for the fourth quarter and fiscal year 2019 with significant year-over-year increases in net sales, shipments and Adjusted EBITDA.  Fiscal 2019 net income attributable to its common shareholder decreased to $103 million for the fourth quarter and $434 million for the full year.

Excluding tax-effected special items in both years, the largest item being a $318 million pre-tax gain related to the Ulsan Aluminum Ltd., joint venture in the second quarter of fiscal 2018, Novelis grew its full year fiscal 2019 net income by 11 percent to $468 million, and fourth quarter net income 29 percent to $130 million.  These increases are primarily driven by a record Adjusted EBITDA for both the quarter and full year.

"Our year-end financial results are the best in company history, reflecting a continued focus on further improving operational efficiencies and customer centricity," said Steve Fisher, President and Chief Executive Officer, Novelis, Inc.  "It was also an important year in innovation, with the introduction of the first aluminum sheet battery enclosure, establishment of Customer Solution Centers and the development of new, high-strength alloys that will further enhance our existing portfolio of Advanz™ automotive products.  We are also continuing to deliver on our purpose of shaping a sustainable world by increasing the amount of recycled content in our products, reducing CO2 emissions across the supply chain and maximizing the advantages of sustainable, lightweight aluminum to benefit our customers, partners and the communities where we live and work."

Fourth Quarter Fiscal 2019 Results

Net sales increased one percent over the prior year to $3.1 billion for the fourth quarter of fiscal 2019, driven by higher total shipments, partially offset by lower average aluminum prices.  Shipments of flat rolled products increased eight percent to 870 kilotonnes.

Adjusted EBITDA for the fourth quarter of fiscal 2019 increased twelve percent to $357 million as compared to $319 million in the prior year.  This increase reflects the favorable impacts from higher shipments, improved product mix, and favorable metal costs.

Full Year Fiscal 2019 Results

Net sales increased eight percent to $12.3 billion in fiscal 2019.  The increase was driven by higher average aluminum prices and a three percent increase in shipments of flat rolled products to 3,274 kilotonnes.

Adjusted EBITDA grew 13 percent to $1.4 billion in fiscal 2019 compared to $1.2 billion in fiscal 2018.  The increase was driven by higher shipments, favorable product mix, and favorable metal costs, partially offset by lower can sheet prices.

The company generated a very strong $408 million of free cash flow in fiscal 2019, or $759 million of free cash flow before capital expenditures of $351 million.  Free cash flow before capital expenditures improved $127 million over the prior year, driven primarily by higher Adjusted EBITDA.