Mumbai, Feb 8 (PTI) Novelis Inc, a subsidiary of Hindalco Industries, has posted a net loss to USD 12 million for the quarter ended December 31, 2011 against USD 46 million in the corresponding period last year. The leading producer of aluminum rolled products also posted a 4 percent dip in net sales to USD 2.5 billion for the December quarter compared to USD 2.6 billion in the year-ago period, owing to lower shipments and a decrease in average aluminum prices, a company statement said here. Shipments of aluminum rolled products totaled 648 kilo tonnes for the third quarter of fiscal 2012 compared to shipments of 715 kilo tonnes in the third quarter of the previous year. This decrease in shipments was primarily a result of customer de-stocking in Europe due to economic uncertainty and continued weakness in the company's electronics business in Asia, it said. "Our results this quarter were impacted by softer demand in Europe and Asia, reducing our ability to absorb fixed costs and higher net interest expense as a result of our debt refinancing last year," Novelis Chief Financial Officer Steve Fisher said. Due to changed scenario, the company has revised its adjusted EBITDA guidance slightly down to USD 1.05-1.08 billion for fiscal 2012. According to the statement, Novelis is also reaffirming its fiscal 2012 free cash flow before capital expenditures target of USD 600-700 million and also the capital expenditures of approximately $550-600 million, primarily focused on its global expansion projects in Brazil, Korea and North America. "Despite the softness we saw in the third quarter, we still believe in the strong long-term growth of the aluminum flat rolled products (FRP) market which is expected to grow 34 percent over the next 5 years," Novelis President and Chief Executive Officer Phil Martens said.
