Novelis
formerly Toronto symbol NVL, makes rolled aluminum products, including beverage cans, packaging and automotive parts. The company was acquired by India's Hindalco in 2007.
ROYAL BANK OF CANADA $57 (Toronto symbol RY) earned $1.14 a share in its first fiscal quarter ended January 31, 2007, up 28.1% from $0.89 a year earlier, thanks to strong gains at both its Canadian and U.S. operations. The bank also raised its quarterly dividend 15%, from $0.40 a share to $0.46. It now yields 3.2%. The current rate …read more »
NOVELIS INC. $44 (Toronto symbol NVL; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 74.0 million; Market cap: $3.3 billion; SI Rating: Average) has struggled since former parent company Alcan Inc. (see page 25) spun it off in early 2005.
Novelis uses aluminum to make beverage containers, automotive parts and construction materials, and many of its major supply contracts lock …read more »
NOVELIS INC. $34 (Toronto symbol NVL; Conservative Growth Portfolio, Manufacturing & Industry sector; SI Rating: Average) is making progress phasing out price caps, which prevent it from passing along rising aluminum costs to its customers.
But this will take several more years. The company feels it will be unable to pass along $230 million to $255 million in extra costs in …read more »
PETRO-CANADA $45 (Toronto symbol PCA; Conservative Growth Portfolio, Resources sector; SI Rating: Average) has delayed a final decision on its proposed 55%-owned Fort Hills oil sands project until mid-2008.
The company now feels it will cost $2.0 billion to convert its refinery in Edmonton to handle the tar-like output, up 25% from a earlier estimate of $1.6 billion. To put that …read more »
Falconbridge Ltd. (formerly Noranda Inc.) will be a hard stock to replace. We first recommended it in our April, 1995 issue. The Resources sector was depressed at the time, but we liked the stock for its high-quality reserves, steady cash flow and secure 5% dividend yield. We repeatedly recommended it and advised investors to stick with it for the low-risk …read more »
ALCAN INC. $47 (Toronto symbol AL; Conservative Growth Portfolio, Resources sector; SI Rating: Average) is the world’s second-largest producer of aluminum, after U.S.-based Alcoa Inc. Canada accounts for about half of Alcan’s aluminum production, while the other half comes from operations in 14 other countries.
The company is also a leading producer of aluminum products, including aluminum sheet, foil, wire and …read more »
NOVELIS INC. $23 had to restate some of its previously reported earnings due to accounting errors. After a review, it now earned $0.14 a share in the three months ended September 30, 2005, down 70.2% from $0.47 a year earlier, due to higher interest costs and foreign exchange losses (all amounts except share price in U.S. dollars). Revenue crept up …read more »
NOVELIS INC. $25 (Toronto symbol NVL; SI Rating: Average) became a public company in early 2005, after former parent Alcan Inc. spun it off to its own shareholders. It was trading at a new high last August when rising aluminum prices undercut its earnings because of clauses in sales contracts that limited its ability to pass these cost increases along …read more »
ALCAN INC. $48 (Toronto symbol AL; SI Rating: Average) is the world’s second-largest producer of primary aluminum, after U.S.-based Alcoa Inc., with about 13% of the world’s aluminum production capacity. Manufacturers turn primary aluminum into a wide variety of products, including automotive parts, construction materials and beverage containers. North America accounts for a third of its sales.
Alcan’s sales rose from …read more »
In the 1980s and 1990s, Alcan qualified as what you might call a cyclical growth stock. It was cyclical because demand for and prices of aluminum and aluminum parts generally rise and fall with the economy. But it had a growth element because aluminum’s strength and light weight make it ideal for use in car parts, to cut fuel consumption.
In …read more »
