Novelis posts profit, but production disruptions weigh

Tue Feb 12, 2013 10:06pm IST

Related Topics

Stocks

   

REUTERS - Novelis Inc, the world's largest producer of rolled aluminum products, reported a quarterly profit on Tuesday after a year-earlier loss, but said production disruptions from a new software system held back results.

The company, a unit of HindalCo Industries Ltd (HALC.NS), said the transition to a new enterprise resource planning (ERP) system in North America led to lost shipments and lower productivity in the fiscal third quarter to December 31.

Net sales fell 5.7 percent to $2.32 billion. Shipments were little changed at 647,000 tonnes, compared with 648,000 tonnes a year earlier, in part because of the teething pains, which the Atlanta-based company's chief executive said had been worse than expected.

"These implementation issues are largely behind us and production has returned to near normal levels," Chief Executive Phil Martens said in a release.

Net income attributable to its common shareholders for the fiscal third quarter came in at $3 million, compared with a loss of $12 million a year earlier.

The company said results were also held back in part by "unfavorable pricing dynamics" in some regions, and higher input costs in North America.

Novelis expects its operating performance to improve, and said it expects fourth-quarter earnings before interest, taxes, depreciation and amortization to be higher than in the fourth quarter a year earlier.

(Reporting by Allison Martell; Editing by Maureen Bavdek and Andrew Hay)

FILED UNDER:

Surprise Rate Cut

Reuters Showcase

Insurance Bill

Insurance Bill

Opposition support bolsters prospects for insurance reforms  Full Article 

SBI Share Sale

SBI Share Sale

SBI's up to $2.4 billion share sale likely by end April - sources   Full Article 

Eicher Share Sale

Eicher Share Sale

Truck maker Volvo sells shares in Eicher Motors  Full Article 

Beef Ban

Beef Ban

After beef ban, Hindu groups force abattoirs to close   Full Article 

Monsoon Season

Monsoon Season

Exclusive - India expects better monsoon rains this year  Full Article 

Services Growth

Services Growth

Services growth at eight-month high in Feb - HSBC PMI  Full Article 

'India's Daughter'

'India's Daughter'

Documentary on 2012 Delhi gang rape banned in India  Full Article 

Capex Slashed

Capex Slashed

Cairn India slashes 2015-16 capex on falling crude   Full Article 

Strong Start

Strong Start

Airwaves auction off to strong start, bids near $10 billion.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage