Hindalco earnings fall to US$545mn on higher raw materials costs

Indian aluminum-copper producer Hindalco Industries posted consolidated net income of 24.56bn rupees (US$545mn) in fiscal 2011 that ended March 31, down 37% compared to 39.25bn rupees in the prior year in part due to higher costs, according to the firm's annual results. Consolidated net sales rose 19% to 718bn rupees from 605.48bn rupees. However, costs jumped 24% to 668.26bn rupees compared with 537.46bn rupees in fiscal 2010, mainly due to higher raw materials costs, the company said. Hindalco owns Atlanta-based aluminum rolled products producer Novelis (NYSE: NVL), which posted net income attributable to common shareholders of US$116mn for fiscal 2011, down 71.4% from the previous year. Net sales rose 22% to US$10.6bn, while adjusted Ebitda was up 42% to a record US$1.07bn. Shipments of aluminum rolled products in fiscal 2011 rose 10% to 2.97Mt driven by strong end-market conditions across all product segments globally, particularly can, automotive and electronics. In South America, Novelis operates two rolling plants and primary production facilities in Brazil, which manufacture various products for the beverage-food can, construction and industrial, and transportation end-use markets. To read the full Hindalco results, go to this link