Novelis has reported a significant rebound in demand for its can sheets in the second quarter of 2024, driven by stabilizing end-user demand across the globe. The aluminum rolling giant noted that beverage packaging customers increased their offtake during the quarter ending on June 30, helping to offset a partial slowdown in automotive demand in certain regions.
The company's quarterly flat rolled product shipments rose to 951,000 metric tons, a 8.2% increase from 879,000 metric tons during the same period in 2023. This growth was primarily attributed to the normalization of beverage can demand, which followed a period of inventory reductions leading into the quarter.
Regionally, South America saw the most significant growth, with shipments soaring by 28% to 111,000 metric tons compared to the previous year. North American deliveries increased by 5% to 388,000 metric tons, while European shipments rose by 6.5% to 261,000 metric tons. Asia also saw a modest increase, with shipments up 4% to 159,000 metric tons.
Automotive demand showed mixed results, varying by region. In Europe, automotive shipments declined, while Asia experienced improvements. In the United States, Novelis began operations at its new automotive recycling facility in Guthrie, Kentucky, during the quarter.
Looking ahead, Novelis confirmed that its major projects, including the rolling mill in Bay Minette, Alabama, and the recycling facility in Busan, South Korea, are on track for completion between July-December 2026 and January-June 2025, respectively. Additionally, the company announced the expansion of its used beverage can (UBC) capacity at its Latchford, UK, plant within the quarter.
Despite the growth in shipments, revenue rose slightly to $4.2 billion from $4.1 billion in the prior year, while profits dipped marginally to $150 million from $156 million over the same period.
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