Constellium to record an impairment charge against the carrying value of the Wise Metals asset
Amsterdam - March 10, 2016 - Constellium N.V. (NYSE and Euronext: CSTM) today announced that the Company intends to record an impairment charge of approximately €400 million in the fourth quarter of 2015 against the carrying value of the Wise Metals asset. This charge, which has no impact on cash flows, reflects management’s view of the future expected performance at Muscle Shoals in light of the challenges for the can/packaging business as previously disclosed.
The execution of the Company’s Body-in-White (BiW) strategy is progressing as planned, and the Company has today separately announced an expansion of its joint venture with UACJ Corporation to provide automotive BiW sheet in the U.S.
Constellium does not intend to make any further comments until its Q4 & FY 2015 Earnings call scheduled for March 15, 2016.
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Forward Looking Statements
Certain statements contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may contain “forward looking statements” with respect to our business, results of operations and financial condition, and our expectations or beliefs concerning future events and conditions. You can identify forward-looking statements because they contain words such as, but not limited to, “believes,” “expects,” “may,” “should,” “approximately,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” likely,” “will,” “would,” “could” and similar expressions (or the negative of these terminologies or expressions). All forward-looking statements involve risks and uncertainties. Many risks and uncertainties are inherent in our industry and markets. Others are more specific to our business and operations. These risks and uncertainties include, but are not limited to, the ability of Wise to refinance its existing ABL facility and the terms of any such refinancing; the ability of Constellium and Wise to achieve expected synergies and the timing thereof; the risk that the businesses will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; Constellium’s increased levels of indebtedness as a result of the acquisition of Wise Metals, which could limit Constellium’s operating flexibility and opportunities; the potential failure to retain key employees as a result of the acquisition of Wise Metals or during the integration of the business, the loss of customers, suppliers and other business relationships as a result of the acquisition of Wise Metals; disruptions to business operations resulting from the acquisition of Wise Metals; slower or lower than expected growth in the North American market for Body-in-White aluminium rolled products and other risk factors set forth under the heading “Risk Factors” in our Annual Report on Form 20-F, and as described from time to time in subsequent reports filed with the U.S. Securities and Exchange Commission. The occurrence of the events described and the achievement of the expected results depend on many events, some or all of which are not predictable or within our control. Consequently, actual results may differ materially from the forward-looking statements contained in this press release. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.