Constellium Reports Record Adjusted EBITDA of €151 Million In Q2

Constellium Reports Record Adjusted EBITDA of €151 Million In Q2

Amsterdam rolled and extruded aluminium leader Constellium N.V. reported numbers for the second quarter and first half of 2018, showing an uptick in both sales and financial results in both periods.

Constellium shipped 397 thousand metric tons in the just-ended quarter, a 4-percent improvement year-on-year from last year’s total of 383 thousand metric tons, bolstered by an increase in shipments across the entirety of the firm’s offerings.

Revenue in the quarter came in at €1,474 million, up 7 percent from last year’s second-quarter take of €1,382 million. An increase in shipments, coupled with recovering aluminium prices, helped push this number higher. Net income in the quarter totaled €55 million, a significant improvement year-on-year over last year’s net income of €15 million.

Adjusted EBITDA in the quarter totaled €151 million, a 19-percent bump over last year’s second-quarter total of €127 million. Better results across the board in every segment, especially automotive rolled product, helped boost that number, per the firm.

In the first half of 2018, Constellium shipped 785 thousand metric tons, better by 4 percent from last year’s first-half shipments total of 758 thousand metric tons. Higher shipments in all segments helped boost that number.

Revenue for the first half of 2018 totaled €2,860 million, a 6-percent bump over total revenue for the first half of last year, when it was €2,710 million. Higher shipments and better aluminium prices bolstered this number as well.

Net income for the half totaled €31 million, up by €3 million from last year’s first-half net income. First half adjusted EBITDA totaled €268 million, an improvement of 22 percent year-on-year from last year’s first half total of €220 million. Improved results in all segments contributed to the better numbers in the half.

Jean-Marc Germain, Constellium’s Chief Executive Officer, hailed the positive results and indicated his belief that they are merely a prelude to even better numbers going forward.

“Constellium delivered strong results in the second quarter. Each business unit reported record quarterly Adjusted EBITDA. Healthy end market demand, solid operational performance, and a focus on reducing costs through Project 2019 contributed to our results. While global trade remains a source of uncertainty, we are optimistic about our prospects for the remainder of the year and are therefore increasing our Adjusted EBITDA growth guidance to a range of 11% to 13%.

“Our positive momentum continues to build. Given our performance and current outlook, we now expect over €500 million of Adjusted EBITDA in 2019, which is one year ahead of our previous guidance of 2020. Our focus remains on executing on our strategy and increasing value for our shareholders.”

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%). The firm produces rolled and extruded aluminium products from various alloys. The firm brought in €5.2 billion of revenue in 2017.