NEW YORK Novelis
Inc.s net income tumbled 59.2 percent in its fiscal
second quarter on weaker aluminum prices on the London Metal
The Atlanta-based producer
posted net income of $49 million for the three months ended
Sept. 30 vs. $120 million in the same period last year on sales
that slid 15.2 percent to $2.44 billion from $2.88 billion.
Novelis said the decline was due to lower LME aluminum prices,
which dropped an average of 20 percent compared with a year
aluminum closed Tuesdays official session on the LME at
$1,941 per tonne, down 17.4 percent from this years high
of $2,349 in late February.
Novelis shipped 719,000 tonnes
of rolled aluminum products in its fiscal second quarter, only
marginally lower than 720,000 tonnes a year earlier.
The company continues to
"monitor some market-related variables due to further slowing
of the global economy" and said there are "competitive
pressures in some regions" that could impact the second half of
the fiscal year, although it maintains its bullish outlook for
can and automotive applications.
"Although we see near-term
pressure due to a slowdown in the global economy, we continue
to believe in the strong long-term growth outlook for can,
automotive and specialties and expect our expansions to deliver
strong Ebitda (earnings before interest, taxes, depreciation
and amortization) contributions once they are fully
commissioned," Novelis chief executive officer Philip Martens
said in a statement.
The company posted net income of
$140 million for the six months ended Sept. 30, down 23.1
percent from $182 million a year earlier, on sales that fell
16.7 percent to $4.99 billion from $5.99 billion.