Novelis reports profit, but production disruptions weigh

Tue Feb 12, 2013 9:09pm IST

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* New software system caused disruptions

* Company says production now back to "near normal" levels

Feb 12 (Reuters) - Novelis Inc, the world's largest producer of rolled aluminum products, reported a quarterly profit on Tuesday, following a year-earlier loss, but said had been hit by production disruptions as it put a new software system in place.

The company, a unit of India's HindalCo Industries Ltd , said it suffered from lost shipments and lower productivity in the fiscal third quarter to Dec. 31, as it implemented a new enterprise resource planning (ERP) system.

Atlanta-based Novelis said net income attributable to its common shareholder for the fiscal third quarter was $3 million, compared with a loss of $12 million a year earlier. Net sales fell 5.7 percent to $2.32 billion.

"The third quarter was challenging as we experienced more production disruptions than expected related to our ERP implementation in North America," Chief Executive Phil Martens said in a release. "These implementation issues are largely behind us and production has returned to near normal levels."

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

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