Constellium Sees 26% Rise in Adjusted EBITDA During Q1

Constellium Sees 26% Rise in Adjusted EBITDA During Q1

Amsterdam rolled and extruded aluminium leader Constellium N.V. released results for the first quarter of 2018 late last week, reporting improvements in both shipments and revenue across nearly all segments.

Shipments in the quarter totaled 388 thousand metric tons, 4 percent above last year’s first-quarter total of 375 thousand metric tons. Constellium chalks up the improvement to increased shipments across the board, led by a rise in Automotive shipments of 24 percent year-on-year.

Revenue in this year’s first quarter came to €1.386 billion, better by 4 percent than last year’s total of €1.328 billion. Increased shipment drew the number upward, as well as a recovery in aluminium prices.

Constellium showed a net loss of €24 million, a stark contrast to last year’s first-quarter profit of €13 million. The firm lays blame at the feet of an unfavorable change to the value of unrealized derivatives as well as an increase from benefit and pension plan amendments in last year’s first quarter.

Adjusted EBITDA in the quarter totaled €117 million, 26-percent to the good from last year’s first-quarter number of €93 million.

Constellium’s Chief Executive Officer Jean-Marc Germain hailed the results as the continuation of a positive arc set in motion over the preceding months.

“Constellium delivered strong results in the first quarter of 2018. Steady end market demand and solid operational performance, including the benefit of Project 2019 savings, drove improvement across each of our segments. I’m pleased that our team was able to continue the momentum built last year.”

He continued by issuing a projection for strong and steady improvements in the firm’s financials through the end of the decade.

“Despite uncertainties around global trade, our focus remains on executing our strategy and on increasing value for our shareholders. We reiterate our Adjusted EBITDA guidance of high single digit growth annually through 2020, leading to over €500 million in 2020, and our guidance to be Free Cash Flow positive in 2019.”

The firm warned the market that it continues to monitor the situation of Rusal’s sanctions, especially as it concerns possible disruptions to its raw aluminium feedstock.

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.