Novelis, Inc. Business Report FY ended Mar. 2019

Financial Overview

(in million USD)
  FY ended Mar. 31, 2019 FY ended Mar. 31, 2018 Rate of Change (%) Factors
Net Sales
Net Income
North America sales 4,581
Europe sales 3,376
Asia sales 2,190
South America sales 2,091

1) Net Sales
-In the fiscal year ended March 31, 2019, the Company’s net sales increased by 7.5% to USD 12,326 million, driven by a 40% increase in average local market premiums and a 3% increase in flat rolled product shipments.

2) Net Income
-The Company’s net income decreased by 31.7% to USD 434 million in the fiscal year ended March 31, 2019. The decrease in net income was due to an increase in the cost of goods sold, a one-time gain due to the sale of a business in the previous fiscal year, and an increase in administrative expenses and future business acquisition expenses.

3) North America
-Net sales in the Company’s North America segment for the fiscal year ended March 31, 2019 totaled USD 4,581 million, an increase of 15.9% over the previous year. The increase was cause primarily due to increased can and automotive shipments.

4) Europe
-The Company’s Europe segment had net sales of USD 3,376 million in the fiscal year ended March 31, 2019, a decrease of 2.1% from the previous year. Decreased shipments in the automotive and specialty product lines contributed to the decreased in sales, which were partially offset by increased can shipments.

5) Asia
-Sales in the Company’s Asia segment increased by 3.8% in the fiscal year ended March 31, 2019 to USD 2,190 million. Increased can shipments partially offset by decreased specialty shipments caused the increase in sales.

6) South America
-In the fiscal year ended March 31, 2019, the Company’s South America segment had sales of USD 2,091 million, an 8.3% increase over the previous fiscal year. Higher can shipments were partially offset by decreased specialty shipments and lower pricing.


-In July 2018, the Company signed a definitive agreement to purchase Aleris, a global aluminium rolled products supplier headquartered in the United States, for USD 2.58 billion. At a market segment level, the acquisition enriches the Company’s portfolio with the fast-growing automotive segment. In the last few years, Aleris has invested approximately USD 900 million in the automotive and other businesses. Aleris' modern Zhenjiang facility strengthens its market leadership as an aluminium sheet supplier in the Chinese automotive market where electric vehicle demand is expected to grow. Aleris is also in the early stages of ramping up its automotive investments in Lewisport, U.S. (From Hindalco stock exchange filing on July 26, 2018)


-The Company announced that it supplies its premium Novelis Advanz aluminium to the recently launched all-electric Jaguar I-PACE. This new addition to the PACE family and Jaguar’s first all-electric vehicle features a strong and stiff lightweight aluminium construction to reduce weight and increase battery range. The all-electric I-PACE reflects the Company’s and Jaguar Land Rover's common vision of delivering a cleaner future and more sustainable vehicles. The companies hold a leading position in sustainability by using high recycled-content alloys on all Jaguar Land Rover body structures, reducing the overall carbon footprint in their products. Since 2013, the Company’s recycling plant in Latchford, UK has provided Jaguar with a closed-loop recycling solution by converting the automaker's aluminium production scrap metal into new material for automotive sheet. (From a press release on October 9, 2018)

R&D Expenditure

(in million USD)
  FY ended Mar. 31, 2019 FY ended Mar. 31, 2018 FY ended Mar. 31, 2017
Overall 72 64 58


R&D Facilities

-The Company’s automotive research and development center is located in Kennesaw, Georgia, U.S.

-The Company announced plans to establish a global network of Customer Solution Centers (CSCs) to accelerate collaborative innovation between itself and automakers for next-generation vehicle design. The Company will work with OEMs to determine how to maximize lightweight, high-strength aluminum to design the best solutions for specific applications at the right cost to better compete against steel and other materials. The facilities will be led by teams of industry-leading researchers, designers and engineers located in close proximity to automakers' manufacturing sites in North America, China and Europe. The first center is scheduled to open in Novi, Michigan, U.S. with other centers to follow in China and Europe. (From a press release on October 31, 2018)

Technological Alliance

-The Company will partner with Impression Technologies to explore ways to increase adoption of aluminum through the hot stamping process. Impression Technologies has the exclusive rights to Hot Form Quench (HFQ), a unique technology used to design and manufacture components using ultra high-strength aluminum for the high-volume automotive and transport markets. The Company will utilize ultra high-strength alloys, such as its 7000 series, that offer higher levels of strength with less weight to compete with hot formed boron steel in a wide range of strength and safety driven parts within automotive structures. (From a press release on November 7, 2018)


-As of March 2019, the Company has approximately 367 patents and patent applications.

Capital Expenditure

(in million USD)
  FY ended Mar. 31, 2019 FY ended Mar. 31, 2018 FY ended Mar. 31, 2017
North America 147 78 80
Europe 80 71 65
Asia 70 36 38
South America 65 38 39
Eliminations and other (11) 3 2
Total 351 226 224

-The Company expects to have capital expenditures of approximately USD 700 million in the fiscal year ending March 31, 2020 to support strategic investments.

Investments in U.S.

-The Company broke ground on its USD 300 million automotive aluminum sheet manufacturing facility in Guthrie, Kentucky, U.S. With an installed annual capacity of 200,000 metric tons, the 400,000-square-foot facility will begin producing automotive aluminum in 2020. The facility will include heat treatment and pre-treatment lines, which prepare aluminum for use in vehicle parts such as body-in-white, hoods, doors, lift gates and fenders. (From a press release on May 14, 2018)

Investment Outside U.S.

-The Company will invest USD 180 million to double its automotive aluminum body sheet capacity at its facility in Changzhou, China. The investment consists of a continuous annealing solution heat (CASH) treatment line that will add approximately 100 kilotonnes of capacity and will include a high-speed slitter as well as a fully automated packaging line. The Company expects to begin expanding its existing facility in 2018 in order to be operational by 2020. Upon completion, the expansion is expected to create approximately 160 full time jobs. The timing of this investment is closely aligned with key customer product launches slated for 2020-2021 from traditional automakers and electric vehicle startups. (From a press release on May 23, 2018)