New ERP system hurts Novelis profitability

Feb 12, 2013 | 02:19 PM | Michael Cowden

Tags  Novelis, earnings report, Philip Martens, aluminum, Michael Cowden

CHICAGO — Novelis Inc.’s profits were hurt by the implementation of a new enterprise planning system (ERP).

The Atlanta-based aluminum producer said that installation of the ERP system at its facilities in North America resulted in lost shipments and reduced productivity in its fiscal third quarter, costing the company about $39 million. Higher metal costs in North America and project startups around the world also affected results, the company said.

Most of the ERP issues were experienced at Novelis’ operations in Oswego, N.Y., president and chief executive officer Philip Martens said during a conference call. He was quick to note that production had largely returned to near-normal levels and that Novelis still intends to roll out ERP systems across its operations worldwide.....





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