19 November 2014

Constellium Reports Third Quarter 2014 Financial Results

Amsterdam, November 19, 2014 – Constellium N.V. (NYSE and NYSE Euronext: CSTM) today reported results for the third quarter ended September 30, 2014.

  • Shipments up 4% versus prior year
  • Revenues up 8% to €927 million and Adjusted EBITDA up 13% to €72 million
  • Strong performance in P&ARP driven by 82% growth in Body-in-White shipments and in AS&I led by 23% growth in automotive structures
  • A&T impacted by aerospace capacity constraints and extended maintenance
  • Body-in-White projects progressing as scheduled
  • Recent Wise Metals acquisition expected to close in January 2015
  • Q3 2014 EPS at €0.11; EPS excluding unrealized losses on derivatives at €0.31

Constellium reported that results for the third quarter of 2014 significantly improved over last year, led by strong performances in our Packaging and Automotive Rolled Products segment (P&ARP) and our Automotive Structures and Industry (AS&I) segment. Our Aerospace and Transportation (A&T) segment continued to perform below our expectations due to capacity constraints and extended maintenance.

Revenues for the third quarter of 2014 were €927 million, an increase of 8% from €862 million in the third quarter of 2013. Revenues increased by 3% on a like-for-like basis, excluding LME metal prices and currency exchange rates, when compared to the same period in 2013. Third quarter 2014 shipments of 266k metric tons were 4% higher than the third quarter 2013 shipments of 257k metric tons. Adjusted EBITDA per metric ton for the third quarter 2014 was €269, which represents an increase of 9% from €247 in the third quarter of 2013. 

Adjusted EBITDA for the third quarter of 2014 was €72 million, which represents an increase of 13% compared to €64 million in the third quarter 2013. Higher metal premiums impacted third quarter 2014 Adjusted EBITDA by €6 million compared to the prior year. As compared to 2013, we currently expect an annual premiums variance of approximately €20 million for the full-year 2014 Adjusted EBITDA, considering the overall sharp increase in premiums in this quarter. Favorable foreign exchange rates positively impacted the results by €8 million due to a weaker euro and stronger U.S. dollar. Adjusted EBITDA in the third quarter also benefited from a €4 million one-time gain at the Holdings and Corporate level.

On October 3, 2014, Constellium signed a definitive agreement to acquire Wise Metals Intermediate Holdings, a private aluminum sheet producer located in Muscle Shoals, Alabama.  Under the terms of the agreement, Constellium is to purchase Wise Metals for $1.4 billion, consisting of $455 million in cash and $945 million in the assumption of Wise’s existing debt.  The acquisition of Wise Metals, which has the widest strip mill in North America, will provide Constellium with access to 450k metric tons of hot mill capacity. Constellium intends to invest up to $750 million by 2022 in order to significantly accelerate its position in the North American Body-in-White (BiW) market. The financing for this transaction is expected to be finalized by early December. On October 29, 2014, the U.S. Department of Justice granted regulatory clearance to the antitrust filings and the acquisition is expected to close in January 2015.

Commenting on the third quarter 2014 results, Pierre Vareille, Constellium’s Chief Executive Officer said: “Overall, third quarter results were in line with our expectations. Our P&ARP and AS&I segments continued to make progress from the prior year and delivered another strong quarter, while the A&T segment continues to perform below expectations. We have launched a comprehensive improvement plan for A&T, which we expect will have a positive earnings impact beginning in 2016. Our global automotive growth initiatives continue to make significant progress in Europe and the U.S.”

Download the press release

Constellium Reports Third Quarter 2014 Financial Results - pdf - in English

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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 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 statements that reflect Constellium’s expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements. These statements reflect beliefs and assumptions that are based on Constellium’s perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances.  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, Constellium’s ability to implement its business strategy, including its productivity and cost reduction initiatives; the possibility of unplanned business interruptions and equipment failure; adverse conditions and disruptions in regional and global economies, including Europe and North America; the risk that certain assumptions with respect to Wise Metals or the pending acquisition of Wise Metals could prove to be inaccurate; the risk that certain assumptions with respect to Constellium’s pending joint venture with UACJ could prove to be inaccurate; 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 prior and subsequent reports filed or furnished with the U.S. Securities and Exchange Commission (“SEC”), including the Form 6-K furnished with the SEC on October 3, 2014. 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.