15 March 2016

Constellium Reports Full-Year and Fourth Quarter 2015 Financial Results

Amsterdam, March 15, 2016 – Constellium N.V. (NYSE and Euronext: CSTM) today reported results for the full year and fourth quarter ended December 31, 2015. These results include the acquisition of Wise Metals, which closed on January 5, 2015.

  • 2015 Shipments of 1.5 million metric tons, up 39% from 1.1 million in 2014
  • 2015 Revenue of €5.2 billion, up 41% from €3.7 billion in 2014
  • 2015 Adjusted EBITDA of €343 million, up 25% from €275 million in 2014
  • Improved year-end leverage to below 5x and liquidity to 733 million from the prior quarter, including 145 million from the revolving credit facility
  • 2015 Diluted EPS of (€5.27) reflecting substantial impairment charges
  • Expanding joint venture with UACJ to establish a leadership position in the growing North American Body-in-White market, reducing expected capital investment from $620 million to approximately $340 million
  • Plan to launch a secured corporate bond offering of approximately $400 million
  • CEO to retire in 2016

Constellium’s Adjusted EBITDA for 2015 was €343 million, an increase of €68 million, or 25%, from the 2014 Adjusted EBITDA, driven by the acquisition of Wise Metals, record performance in the Automotive Structures and Industry (AS&I) segment, and recovery in the Aerospace and Transportation (A&T) segment. Our results in Packaging and Automotive Rolled Products (P&ARP) were driven by the acquisition of Wise Metals, which contributed €68 million in Adjusted EBITDA in 2015. Adjusted EBITDA in 2015 also included a favorable year-over-year effect from metal premiums of €15 million and a foreign exchange effect of €14 million offset by higher costs in Holdings and Corporate as compared with 2014.

Adjusted EBITDA per metric ton for 2015 was €232, a decrease of 10% from 2014, reflecting a higher proportion of packaging in our product mix as a result of the Wise Metals acquisition.

Revenues for 2015 were €5.2 billion, which represented an increase of 41% from 2014 resulting primarily from the integration of the Muscle Shoals facility. On a like-for-like basis (excluding the impact of movements in London Metal Exchange metal prices, premiums, currency exchange rates, and the acquisition of Wise Metals), revenues increased by 4% when compared to 2014. Shipments in 2015 were 1,478k metric tons, up 39% from 2014, driven mainly by the integration of Wise Metals.

In the fourth quarter of 2015, Adjusted EBITDA was €76 million, an increase of 48% from €51 million in Q4 2014 as a result of the inclusion of Muscle Shoals. Adjusted EBITDA per metric ton for the fourth quarter 2015 was €224, an increase from €207 in Q4 2014 and driven mainly by the A&T segment. Revenues were €1,122 million in the fourth quarter of 2015, an increase of 20% from €936 million in the same period of 2014. In the fourth quarter of 2015, shipments were 337k metric tons, a 36% growth from the Q4 2014 shipments.  

Commenting on 2015 results, Pierre Vareille, Constellium’s Chief Executive Officer said: “2015 showed marked improvement in our performance, particularly in our A&T and AS&I segments. We also completed the Wise acquisition, and after a challenging start it is now fully integrated into our P&ARP segment. We expect to launch a secured corporate bond offering to provide ample liquidity as a prudent move to allow us to safely carry forward the implementation of our strategy. All in all, reflecting on our efforts, I believe Constellium is on a firm footing with newly invested capacity and well positioned to capitalize on the opportunities in our industry, particularly in Body-in-White, aerospace and automotive extruded products.”

In addition, Pierre Vareille announced, “I have informed the Board of my desire to retire during the course of 2016, and the Company is working to ensure a smooth transition, which may occur this summer. At the Board’s request, I have agreed to remain in my current role until my successor is appointed, and to thereafter become an advisor to the Board to facilitate the transition. The Company is in discussions with a particular candidate, but no agreement has been finalized at this time. The Company currently expects to provide an update on the transition plan by early May 2016.”


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Constellium Reports Full-Year and Fourth Quarter 2015 Financial Results - pdf - 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 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, the possibility that Constellium joint venture expansion with UACJ may have terms that differ materially from those currently contemplated, the possibility that a secured bond offering will not ultimately be completed or will be completed on more restrictive terms than expected, 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.