Novelis Restarts Aluminum Production, Easing Ford's F-Series Supply Crisis

CommodityEarnings
โดย The Motley Fool·Read original
Summary · why it matters

Novelis has restarted production at its Oswego, New York, facility, a development that offers relief to Ford Motor Company after factory fires disrupted aluminum supply and threatened up to $2 billion in earnings. The fires, which occurred last fall and were followed by a second blaze that delayed recovery, crippled Novelis's ability to produce aluminum automotive products for major automakers including Ford, Stellantis, and General Motors. Ford had warned the disruption could cost up to $2 billion and that F-Series inventory would not normalize until the second half of 2026, with U.S. sales of the F-Series declining 13% in May and remaining down 15% year to date. The production restart comes at a critical time as Ford enters a popular selling season and aims to recover roughly half of the lost EBIT, estimated at $750 million to $1 billion, in 2026. Bank of America analyst Federico Merendi sees a path for 2026 adjusted EBIT in the range of $8.5 billion to $10.5 billion, supported by the recovery and other tailwinds.

Impact on stocks 5

Electrification & Mobility▲ · 3 stocks
Ford Motor Company
F
▲ PositiveSupplyrelevance

Novelis restarts aluminum production, easing supply crisis that threatened Ford's F-Series earnings.

Stellantis NV
STLA
▲ PositiveSupplyrelevance

Novelis restart also benefits Stellantis as a major automaker affected by the aluminum supply disruption.

Financials▲ · 1 stocks
Artificial Intelligence▲ · 1 stocks

Theme Impact 2

Off-coverage companies 1

Novelis Inc.Private▲ Positive
Supplyrelevance

Novelis restarts production at Oswego facility, resolving its own supply disruption.

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