Novelis Inc, a subsidiary of Hindalco Industries, has reported a net profit of $3 million for the quarter ended December 31, 2012.
The company had posted a net loss of $12 million in the same period last financial year, a company statement said.
“The third quarter was challenging as we experienced more production disruptions than expected related to our Enterprise Resource Planning (ERP) implementation in North America”.
“These implementation issues are largely behind us and production has returned to near normal levels,” Phil Martens, President and Chief Executive Officer, Novelis said in a statement.
The leading producer of aluminium rolled products net sales for the third quarter declined to $2.3 billion from $2.5 billion reported in the same period a year ago, the statement said.
This included sale from the company’s three foil plants in Europe that were divested. In addition, sales were also impacted by lower conversion premiums as well as lower average aluminium prices when compared to last year, it added.
Martens said, “This is a heavy investment period for us that is necessary to maintain and grow our leadership position in the industry and allow us to capitalise on the significant growth we see ahead in our key end-markets.”
“While we were disappointed with our results in the third quarter, we are pleased with the strong execution of our strategy. In fact, Brazil is a good example of this, with record shipments and the successful commissioning of our rolling expansion in the region,” he added.
Shipments of aluminium rolled products totalled 647 kilo tonnes for the third quarter of fiscal FY13 flat compared to shipments of 648 kilo tonnes for the same period last fiscal.