The aluminum Ford F-150 can’t come quick enough for Atlanta aluminum giant Novelis.
With aluminum supply still outstripping demand and anemic prices for the metal’s sheets, profit for the company tumbled for both the fourth quarter of 2014 and the full year.
The company reported Friday that net income fell more than 8 percent in fourth quarter 2014 to $54 million from $59 million during the same period last year. For the full year of 2014, net income was down more than 48 percent, from $202 million in 2013 to $104 million in 2014.
Phil Martens, president and chief executive officer for Novelis, said 2014 was a transitional year for the company. Novelis hopes to reduce some costs by lowering capital expansion expenses to about $500 million to $550 million this year, compared to about $775 million in 2013.
“We completed the majority of our business transformation initiatives to secure our leadership position in flat rolled products for the global automotive and beverage can markets, and enhance our unmatched, low-cost recycling capabilities worldwide,” he said. “Together these actions are driving both our top and bottom lines.”
The company’s role with Ford’s top-selling F-150 pickup could soon reverse Novelis’ future fortunes.
“Auto will accelerate this year as our key supplier role to Ford’s new aluminum intensive F-150 program will demonstrate,” Martens said in a statement.
About the Author
