Novelis, Inc. Business Report FY ended Mar. 2017

Financial Overview

(in million USD)
FY ended Mar.
31, 2017
FY ended Mar. 31, 2016 Rate of Change (%) Factors
Net Sales 9,591 9,872 (2.8) 1)
Net Income 45 (38) 118.4 2)
Segment sales
North America 3,228 3,266 (1.2) 3)
Europe 2,968 3,223 (7.9) 4)
Asia 1,791 1,992 (10.1) 5)
South America 1,510 1,575 (4.1) 6)


1) Net Sales
-In the fiscal year ended March 31, 2017, the Company’s net sales decreased by 2.8% to USD 9,591 million. Despite an increase in average base aluminum prices and a favorable impact from a strategic shift to higher conversion premium products, sales decreased due to a decrease in flat rolled product shipments and local market premiums.

2) Net Income
-The Company had a net income of USD 45 million for the fiscal year ended March 31, 2017. The increase in income was primarily due to, lower average metal cost, increased stability in the current year local market premiums, and declines in interest expense. The gains were partially offset by restructuring and impairment costs, the sale of the Company’s interest in the Aluminum Company of Malaysia Berhand, and the loss on extinguishment of debt.

3) North America
-Net sales in North America decreased by 1.2% to USD 3,228 million in the fiscal year ended March 31, 2017. The USD 38 million decrease was due to lower can shipments which was partially offset by increased automotive shipments and higher average aluminum prices.

4) Europe
-Net sales in the Europe segment decreased by 7.9% to USD 2,968 million in the fiscal year ended March 31, 2017. The decrease was primarily due to lower can and specialties shipments, though higher automotive shipments and higher average aluminum prices partially offset losses.

5) Asia
-In the fiscal year ended March 31, 2017, net sales in the Company's Asia segment decreased by 10.1% to USD 1,791 million due to lower can shipments and pricing. Increased average aluminum prices served to partially offset those losses.

6) South America
-Net sales of South America decreased by 4.1% to USD 1,510 million in the fiscal year ended March 31, 2017 due to lower can shipments despite favorable pricing conditions.


-In March, the Company announced that it had signed an agreement with NIO, a next-generation car company, to provide aluminum solutions for NIO’s high-performance, premium electric vehicles. NIO will use Advanz aluminum alloys for a range of structural components and aluminum parts for its electric SUV models over the next five years. This agreement marks the Company’s first major commitment in the premium electric vehicle market. The Company’s Changzhou plant will provide the materials for NIO. (From a press release on March 16, 2017)

-The company announced that it is supplying aluminum solutions for the all-new Jaguar XFL, the first Jaguar model from Chery Jaguar Land Rover Automotive Co., Ltd. The XFL launched in China and features a body-in-white made of 75 percent aluminum. Jaguar XFL’s advanced design builds upon the successful launch of the Jaguar XE and XF models in Europe, which also featured the company aluminum and applies the same the company premium alloys, Novelis Advanz, throughout the majority of the body-in-white. Most of the aluminum alloys featured in the Jaguar XFL come from it's Changzhou Plant, with the remainder to be sourced from it's Sierre plant in Switzerland. (From a press release on October 10, 2016)

-The company announced that its aluminum is used in the new 2016 Cadillac CT6 body. In North America, it's plant in Kingston, Ontario, Canada will supply GM's Detroit-Hamtramck plant in Detroit, Michigan, USA. It's plant in Changzhou, Jiangsu Province, China will supply GM's Shanghai plant. In both North America and Asia, it'd aluminum is featured throughout the vehicle body, including the passenger and rear compartments, roof structure, outer body panels and door and deck lid structures. (From a press release on May 10, 2016)

-The 2018 Ford Expedition, unveiled in February 2017, is the automotive industry’s first aluminum body SUV. The Company provides material for the high-strength aluminum-alloy body, which helps to reduce the weight of the Expedition by 300 pounds compared to the previous generation.


-In November 2016, the Company was awarded the European Aluminum Award at the Aluminum 2016 Trade Fair due to its work in the REALCAR project. The REALCAR project was launched in 2008 by Jaguar Land Rover, and involves multiple parties to develop a closed-loop vehicle production model which recycles cars at the end of their lifecycles. Through this system, Jaguar Land Rover was able to recover 50,000 tons of aluminum scrap in 2015. (From a press release on November 29, 2016)

R&D Expenditure

(in million USD)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 FY ended Mar. 31, 2015
Overall 58 54 50

R&D Structure

-As of March 2017, the Company has approximately 350 employees dedicated to research and development.

R&D Facilities

-The Company’s automotive research and development centers are located in Kennesaw, Georgia, U.S. and Sierre, Switzerland.


-As of March 2017, the Company has approximately 204 patents and patent applications.

Capital Expenditure

(in million USD)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 FY ended Mar. 31, 2015
North America 80 143 122
Europe 65 146 257
Asia 38 35 85
South America 39 39 53
Eliminations and others 2 7 1
Total 224 370 518

Investments in U.S.

-The Company announced the commissioning of its third automotive finishing line in Oswego, New York, U.S. USD 120 million was invested into the line in order to expand high-strength aluminum alloy supply for Ford F-Series trucks. The newest automotive finishing line in Oswego will produce aluminum sheet for the body and cargo box of the all-new 2017 F-Series Super Duty lineup. During the past five years, the Company has expanded its ability to serve the North American automotive market by installing and commissioning three automotive finishing lines in Oswego, creating more than 460 jobs. (From a press release on May 23, 2016)