Constellium Reports Third Quarter 2015 Financial Results
Amsterdam - November 5, 2015 – Constellium N.V. (NYSE and Euronext: CSTM) today reported results for the third quarter ended September 30, 2015. Highlights below are in comparison to the third quarter of 2014 and include the acquisition of Wise Metals.
Shipments of 374 thousand metric tons, up 41%
Revenue of €1.259 billion, up 36%
Adjusted EBITDA of €79 million, up 10% despite €6 million impact of scalper outage
Automotive rolled shipments up 13%; Automotive extruded shipments up 11%
AS&I achieved a record €22 million in Adjusted EBITDA, up 29%
Q3 2015 Diluted EPS and EPS excluding unrealized losses on derivatives are (€0.43)
Liquidity of €577 million expected to be at similar or higher level at year-end
Exploring alternatives to reduce cash flow impact to Constellium of investments in Muscle Shoals
Electing to pay Wise PIK Toggle Note coupon in kind in June 2016
Revenue for the third quarter 2015 were €1.259 billion, an increase of 36% from the third quarter 2014 and Adjusted EBITDA was €79 million in the third quarter of 2015, an increase of 10% from the third quarter last year. The increase in Adjusted EBITDA reflected a total of €8 million positive premium impact and a negative €1 million impact in foreign exchange for the Company when compared to the same period in 2014. Third quarter 2015 shipments were 374k metric tons, an increase of 41% from last year. Adjusted EBITDA per metric ton for the third quarter 2015 was €211 compared to €269 for the third quarter 2014, reflecting the impact of higher volumes of can sheet in our mix as a result of the acquisition of Wise Metals. Excluding Muscle Shoals, Adjusted EBITDA per metric ton for the third quarter 2015 was €253.
The inclusion of Muscle Shoals resulted in a contribution of €275 million in revenue and €12 million in Adjusted EBITDA to the P&ARP segment for the third quarter 2015. In addition, Muscle Shoals added 109k metric tons of shipments to Constellium for the same period.
Commenting on the third quarter 2015 results, Pierre Vareille, Constellium’s Chief Executive Officer said: “Third quarter results reflect strong operational progress and we expect 2016 to show a marked improvement in the profitability of our three segments. We continue to believe that the Body-in-White opportunity, particularly in North America, represents significant long-term value for our shareholders. However, we are exploring alternatives to reduce the cash flow impact to Constellium of investments in Muscle Shoals. This review is a tangible step to balance our long-term growth with the near-term financial objectives of the Company. Additionally, we are electing to pay the Wise PIK Toggle Note coupon in kind in June 2016.”
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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 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 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.