Novelis reports profit, but production disruptions weigh

Tue Feb 12, 2013 9:09pm IST

Related Topics

Stocks

   

* 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.

FILED UNDER:

Economic Pulse

REUTERS SHOWCASE

Vodafone Tax Dispute

Vodafone Tax Dispute

India advised against challenging Vodafone tax ruling - source  Full Article 

Banking Sector

Banking Sector

India's laggard state lenders face tough sell on capital raising plan  Full Article 

Trade Deal

Trade Deal

WTO postpones trade deal by a day after last-minute objection.  Full Article 

Falling Oil Prices

Falling Oil Prices

Saudis signal no push for oil cut as market to "stabilise itself"  Full Article 

Raising Stake

Raising Stake

Nippon Life to raise stake in Reliance Capital fund unit  Full Article 

Sterilisation Camps

Sterilisation Camps

Sterilisation targets remain in all but name, critics say  Full Article 

Share Buyback

Share Buyback

Samsung Electronics to buy back $2 billion in shares  Full Article 

Microsoft in China

Microsoft in China

Microsoft to pay China $140 million for 'tax evasion'   Full Article 

Flashback: 26/11

Flashback: 26/11

The three-day attack in November 2008 left 166 dead.  Slideshow 

Reuters India Mobile

Reuters India Mobile

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