Constellium Reports First Quarter 2014 Financial Results
Amsterdam, May 16, 2014 – Constellium N.V. (NYSE and NYSE Euronext: CSTM) today reported results for the first quarter ended March 31, 2014.
Highlights of results include:
Shipments up 3% from prior year
Q1 2014 Revenues of €883 million and Adjusted EBITDA of €71 million
Major milestone reached with the signing of U.S. Body-in-White joint venture
Ratings upgraded to ‘Ba3’ (Moody’s) and ‘BB-’ (Standard & Poor’s )
Successful completion of $400 million and €300 million bond offerings
Constellium reported solid results for the first quarter of 2014 reflecting strong improvement in our automotive business and solid performance in our packaging business, despite a temporary equipment outage during the first quarter in one of our main aerospace plants.
Revenues for the first quarter of 2014 were €883 million or 3% lower as compared with €911 million in the first quarter of 2013, reflecting lower London Metal Exchange (LME) prices. Excluding changes in LME prices and currency exchange rates, revenues on a like-for-like basis increased 7% compared with the first quarter of 2013.
Adjusted EBITDA for the first quarter of 2014 was €71 million, which represented an increase of 20% from the fourth quarter of 2013 Adjusted EBITDA of €59 million and a decrease of 3%, or €2 million, from the first quarter of 2013 Adjusted EBITDA of €73 million.
First quarter 2014 results were impacted by a five-day equipment outage of the hotline at our Ravenswood, West Virginia aerospace manufacturing facility, and by the impact of foreign exchange rates and higher aluminum premiums as compared with the first quarter of 2013.
First quarter 2014 shipments of 269k metric tons were 15% higher than fourth quarter 2013 shipments of 234k metric tons, and 3% higher than first quarter 2013 shipments of 260k metric tons. Adjusted EBITDA per metric ton for the first quarter 2014 was €263, which represented a decrease of 6% from €280 per metric ton in the first quarter 2013.
Commenting on the first quarter 2014 results, Pierre Vareille, Constellium’s Chief Executive Officer said: “First quarter results met expectations due to another solid performance in our packaging business and continued growth in our automotive business. Aerospace results were negatively impacted by operational issues in the first quarter, however, we have now returned to normal operating conditions. We see strong long term demand in aerospace, particularly for AIRWARE®, where we have a leadership position in the emerging aluminum lithium market. In our automotive markets, we are experiencing unprecedented levels of interest in auto body structures and crash management systems from our global automotive customers for next generation automotive platforms. In parallel, we continue to make significant progress in both Europe and in the U.S. in our long term projects in automotive body-in-white capacity expansions.”
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Forward Looking Statement
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 certain 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, those set forth under the heading “Risk Factors” in our Annual Report on Form 20-F, and described from time to time in subsequent reports, filed with the U.S. Securities and Exchange Commission, and include risks relating to the finalization of our U.S. body-in-white joint venture, including the failure to receive required regulatory approvals. 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.