Constellium Reports Fourth Quarter and Full Year 2019 Results


Constellium SE (NYSE: CSTM) today reported results for the fourth quarter and full year ended December 31, 2019.

Fourth quarter 2019 highlights:

  • Shipments of 368 thousand metric tons, comparable to Q4 2018

  • Revenue of €1.4 billion, down 2% compared to Q4 2018

  • Net income of €22 million increased compared to net loss of €57 million in Q4 2018

  • Adjusted EBITDA of €121 million, up 15% compared to Q4 2018

Full year 2019 highlights:

  • Shipments of 1.6 million metric tons, up 4% compared to 2018

  • Revenue of €5.9 billion, up 4% compared to 2018

  •  Net income of €64 million decreased compared to net income of €190 million in 2018

  • Adjusted EBITDA of €562 million, up 13% compared to 2018

  • Cash from Operations of €447 million and Free Cash Flow of €175 million

  • Net debt / LTM Adjusted EBITDA of 3.9x at December 31, 2019

  • Project 2019 run-rate cost savings of €78 million achieved at December 31, 2019

Jean-Marc Germain, Constellium’s Chief Executive Officer said, “Constellium delivered strong results in 2019. Our Adjusted EBITDA of €562 million increased by 13%, driven by excellent performance from our Packaging and Automotive Rolled Products and Aerospace and Transportation segments. Notably, 2019 represented our third consecutive year of double digit Adjusted EBITDA growth. Our Free Cash Flow of €175 million was very strong and delivers on an important financial target that we set in March 2017. We also made substantial progress on our deleveraging objective in 2019, repaying gross debt during the year and reducing leverage to 3.9x at year end. Overall, I am proud of Constellium's performance in 2019.”

Mr. Germain continued, “I am optimistic about 2020. Based on our current outlook, we expect Adjusted EBITDA growth of 6% to 9% and Free Cash Flow generation of €125 million to €175 million in 2020. We remain on track to deliver on our long-term targets of Adjusted EBITDA over €700 million and leverage of 2.5x in 2022. We are committed to shareholder value creation through the execution of our strategy.”

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, while others are more specific to our business and operations. These risks and uncertainties include, but are not limited to: market competition; economic downturn; disruption to business operations; the inability to meet customer demand and quality requirements; the loss of key customers, suppliers or other business relationships; the capacity and effectiveness of our hedging policy activities; the loss of key employees; levels of indebtedness which could limit our operating flexibility and opportunities; 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 update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.