Constellium Reports Third Quarter 2016 Financial Results
Amsterdam - November 10, 2016 – Constellium N.V. (NYSE and Euronext: CSTM) today reported results for the third quarter ended September 30, 2016. Highlights below are in comparison to the third quarter 2015.
Shipments of 377 thousand metric tons, in line with prior year
Revenue of €1.2 billion, down 5% on a product mix shift
Net income of €15 million compared to a net loss of €45 million in the prior year
Adjusted EBITDA of €97 million, up 23%
P&ARP Adjusted EBITDA up 49% to €60 million, AS&I up 13% to €25 million, and A&T unchanged from prior year at €20 million
Calling the $150 million 9.75% Senior PIK Toggle Notes to reduce gross debt
Third quarter 2016 Adjusted EBITDA of €97 million increased 23% over the prior period, reflecting strong operational improvements in our P&ARP segment, in particular at Muscle Shoals, solid execution in our AS&I segment and stable results in our A&T segment.
Commenting on the third quarter 2016 results, Jean-Marc Germain, Constellium’s Chief Executive Officer said: “I am encouraged by the significant improvement at our Muscle Shoals facility and the steady progress we are making across our businesses. I am also pleased by the on-time completion and commissioning of our body-in-white finishing lines in both Europe and the U.S. Looking forward, we expect typical seasonal softness in the fourth quarter of 2016, followed by a stronger 2017, as we execute our plan and take advantage of attractive long-term fundamentals.
In addition, I am delighted to announce three new members of our Executive team: Peter Matt as Executive Vice President and Chief Financial Officer, Ryan Jurkovic as Senior Vice President and Chief Human Resources Officer, and Jack Clark as Senior Vice President Manufacturing Excellence and Chief Technology Officer. Their contributions will be critical as we focus our capital and human resources on the key financial and operational elements of our strategy, including reducing our leverage. Calling the Senior PIK Toggle Notes is a first step in this direction.”
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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 Metals 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.