Novelis Inc., the world's leading producer of aluminum rolled products, today reported net income attributable to its common shareholder of $3 million for the third quarter of fiscal 2013.  Excluding tax-effected restructuring in both periods, net income for the third quarter of 2013 was $8 million, compared to a net loss of $11 million for the same period in 2012. 

Adjusted EBITDA was $185 million for the third quarter of 2013, compared to $213 million reported for the same period in 2012.  This decline was primarily due to the implementation of an Enterprise Resource Planning (ERP) system which resulted in lost shipments, reduced productivity and stabilization costs, and negatively impacted the third quarter of fiscal 2013 by approximately $39 million.  In addition, the Company experienced unfavorable pricing dynamics in several regions, higher metal input costs in North America, and incremental project start-up costs associated with its global expansions.

Phil Martens, Novelis President and Chief Executive Officer commented, "The third quarter was challenging as we experienced more production disruptions than expected related to our ERP implementation in North America.  These implementation issues are largely behind us and production has returned to near normal levels."

"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 capitalize on the significant growth we see ahead in our key end-markets," said Martens.  "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."

Shipments of aluminum rolled products totaled 647 kilotonnes for the third quarter of fiscal 2013, flat compared to shipments of 648 kilotonnes for the same period last year.   

Net sales for the third quarter of fiscal 2013 were $2.3 billion, a 6 percent decrease compared to the$2.5 billion reported in the same period a year ago, which included sales 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 aluminum prices when compared to last year.

For the third quarter of fiscal 2013, Novelis reported liquidity of $775 million.  "Despite our semi-annual bond interest payment and our substantial capital expenditure program, we reported solid liquidity in the quarter," said Steve Fisher, SVP and Chief Financial Officer of Novelis.  Free cash flow was a negative $309 million for the third quarter of 2013, primarily due to capital expenditures of $193 million, a $107 million bond interest payment and negative changes in working capital.

Strategic Expansions & Footprint Optimization  
The Company continues to make progress on its strategy.  In October, it began the commissioning process at its 265 kilotonne fully-integrated recycling facility in Korea, Asia's largest beverage can recycling center.   In November, it broke ground on a 120 kilotonne automotive heat treatment line, the first of its kind in China, and the world's largest 400 kilotonne aluminum recycling and casting center in Germany.  In December, it began the commissioning process at its Pinda mill in Brazil, which will add an incremental 220 kilotonnes of capacity once fully operational over the next two to three years, bringing total rolling capacity in South America to approximately 600 kilotonnes. 

In addition, in line with the Company's strategy to divest or close non-core or underperforming assets, in January, it announced the closure of a pot line at its Ouro Preto smelter in Brazil as it is no longer competitive to operate.

Business Outlook  
Going forward, the Company sees solid demand across its regions and key end-market segments. It expects operating performance to improve, with fourth quarter of fiscal 2013 EBITDA above fourth quarter of fiscal 2012.

Quarterly Report on Form 10-Q  
The results described in this press release have been reported in detail on the Company's Form 10-Q on file with the SEC, and investors are directed to that document for a complete explanation of the Company's financial position and results through December 31, 2012.  The Novelis Form 10-Q and other SEC filings are available for review on the Company's website at www.novelis.com.