Amsterdam rolled and extruded aluminium leader Constellium N.V. announced results for the first quarter on Wednesday, showing improvements on both the production and financial fronts during the year’s opening quarter.
In the first quarter Constellium shipped 413 thousand metric tons of product, up by 6 percent on the year. Packaging and Automotive Rolled Product led the charge in the quarter with a 9-percent increase on the year to 281 thousand metric tons.
Revenue for the quarter totaled €1,536 million, an 11-percent increase from last year’s first-quarter total of €1,386 million. Boosting revenue in the quarter was consolidation of operations at the Bowling Green plant and a better price and product mix. Net income did a complete reversal in the quarter, totaling €24 million a year after a first-quarter net loss of €24 million. Constellium credits a favorable change in the value of unrealized derivatives and an uptick in adjusted EBITDA.
Adjusted EBITDA in the first quarter figured at €135 million, 12 percent better on the year from last year’s first-quarter adjusted EBITDA of €121 million. Though Automotive Structures and Industry struggled in the quarter, Aerospace and Transportation and Packaging and Automotive Rolled Products helped propel the number to an improved result.
Jean-Marc Germain, Constellium’s Chief Executive Officer, recognized improvements across several sectors last quarter, opining that it portended even better results in the coming year.
“Constellium delivered strong results in the first quarter of 2019. Adjusted EBITDA was a first quarter record and a 12% improvement over last year’s first quarter. Aerospace & Transportation had an exceptionally strong quarter, benefiting from strong end market demand and solid operational performance. Packaging & Automotive Rolled Products continues to execute on the ramp up of our automotive lines, with Bowling Green making notable strides. Automotive Structures & Industry results continue to be affected by costs related to the planned build out of our footprint. I am especially proud of our positive Free Cash Flow generation during the quarter. Our first quarter performance leaves me optimistic about our prospects for the remainder of 2019.”
“We are maintaining our guidance of Adjusted EBITDA growth of 8% to 10% and Free Cash Flow in excess of €50 million in 2019,” forecast Germain. “Our focus is on executing our strategy and delivering our 2022 targets of Adjusted EBITDA over €700 million and leverage of 2.5x. We are committed to increasing shareholder value.”
Constellium, based in Amsterdam, was founded 1855 as Henri Merle et Compagnie and subsequently renamed Pechiney in 1950. Pechiney was purchased by Alcan in 2003, which was purchased by Rio Tinto in 2007. In 2011 Rio Tinto sold Alcan Engineered Products to Apollo Management (51%) and FSI (10%). Constellium produces rolled and extruded aluminium products from various alloys, bringing in €5.69 billion of revenue in 2018.