Amsterdam rolled and extruded aluminium leader Constellium N.V. released results for the second quarter and first half of 2019 yesterday, with gains in packaging and automotive rolled aluminium products teaming up with a consolidation at the Bowling Green plant to enhance the firm’s overall financial performance.
In the second quarter Constellium shipped 413 thousand metric tons of aluminium product, a 4-percent rise on the year. Consolidation of operations at Bowling Green led to higher shipments from the Packaging and Automotive Rolled Products segment, which helped drive the quarterly increase.
Constellium’s revenue for the first quarter totaled €1,538 million, a rise of 4 percent on the year, and net income in the quarter came to €17 million, down from last year’s net income of €55 million.
Adjusted EBITDA in the quarter came to €167 million, an 8-percent improvement over last year’s second-quarter total of €155 million. Weaker results from Automotive Structures and Industry failed to dim gains by the Aerospace and Transportation segment.
In the year’s opening half Constellium shipped 826 thousand metric tons of aluminium product, up by 5 percent from last year’s first half. The consolidation of Bowling Green operations contributed to the rise in production over the first six months as well.
The first half saw Constellium raise revenue of €3,074 million, good for an increase of 7 percent on the year. Bowling Green’s consolidation contributed positively here as well, along with an improved price and product mix.
Constellium’s net income rose in the first half, from €31 million last year to €41 million this year, while Adjusted EBITDA in the first half totaled €302 million, better by 10 percent from last year’s opening half number of €276 million. The Aerospace and Transportation paired with Automotive Rolled Products to sweeten this year’s number.
“Constellium delivered record quarterly Adjusted EBITDA of €167 million in the second quarter,” explained Jean-Marc Germain, Constellium’s Chief Executive Officer. “Our Aerospace and Transportation and Packaging and Automotive Rolled Products businesses maintained their momentum from the first quarter and each reported record quarterly Adjusted EBITDA, while Automotive Structures and Industry continued to experience incremental costs from new product launches and our footprint expansion. Based on our strong Free Cash Flow performance in the first half, we furthered our deleveraging by announcing in July the redemption of €100 million of our 2021 Senior Notes.”
“Based on our first half performance and our current outlook for 2019, we are increasing our Adjusted EBITDA guidance to 13% to 15% and our Free Cash Flow guidance to €125 million to €175 million. As a result, we now expect leverage to fall below 3.8x by the end of 2019. We remain focused on delivering on our long-term Adjusted EBITDA and leverage targets.”
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.