Amsterdam aluminium extruder Constellium reported results for the third quarter of 2016 today. Though production numbers were similar year-on-year, the firm returned better financial numbers than in 2015.
According to the firm’s press release, Constellium shipped 377 thousand metric tons of product, which was consistent with the volume shipped in the third quarter of last year. Revenue was down however, totaling €1.2 billion for the quarter, off by five percent year-on-year. Constellium chalks up the drop to a shift in its product mix.
In contrast, net income was up, totaling €15 million in the quarter, which is a significant change year-on-year, as income was in the red to the tune of €45 million. Adjusted EBITDA was up as well, coming in 23% higher year-on-year at €97 million. Adjusted EBITDA for Packaging and Automotive Rolled Products and Automotive Structures and Industry were both up as well, by 49% to €60 million and by 13% to €25 million, respectively. Aerospace and Transportation’s adjusted EBITDA was level year-on-year, finishing the quarter at €20 million.
Constellium moved to reduce its gross debt in the quarter as well by calling the US$150 million 9.75% Senior PIK Toggle Notes. The firm says it will redeem the notes early next month at a redemption price of 104.875% of the aggregate outstanding principal amount, plus accrued and unpaid interest. Constellium says this redemption shows management’s confidence in its liquidity position.
“I am encouraged by the significant improvement at our Muscle Shoals facility and the steady progress we are making across our businesses,” said Constellium CEO Jean-Marc Germain. “I am also pleased by the on-time completion and commissioning of our body-in-white finishing lines in both Europe and the U.S. Looking forward, we expect typical seasonal softness in the fourth quarter of 2016, followed by a stronger 2017, as we execute our plan and take advantage of attractive long-term fundamentals.”
“In addition, I am delighted to announce three new members of our Executive team: Peter Matt as Executive Vice President and Chief Financial Officer, Ryan Jurkovic as Senior Vice President and Chief Human Resources Officer, and Jack Clark as Senior Vice President Manufacturing Excellence and Chief Technology Officer,” Germain went on. “Their contributions will be critical as we focus our capital and human resources on the key financial and operational elements of our strategy, including reducing our leverage. Calling the Senior PIK Toggle Notes is a first step in this direction.”