Constellium, a leader in the manufacturing of high-quality aluminium products and solutions, yesterday reported results for second quarter ended June 30, 2017. The company reported revenue of €1.4 billion in Q2, up 12% from Q2 2016 due to higher aluminium prices.
The company reported net income of €15 million improved from €9 million in the second quarter of 2016. The company posted an adjusted EBITDA of €127 million for the second quarter of 2017, up 19% from Q2 2016.
{alcircleadd}Constellium reported total shipments of 383k metric tons, down 1% compared to the second quarter of 2016 on lower shipments of packaging and automotive rolled products.
For Packaging & Automotive Rolled Products division, Q1 adjusted EBITDA of €57 million, a slight increase from Q2 2016. In Q2, shipments of 258k metric tons declined 3% from Q2 2016 as a 31% increase in Automotive rolled product shipments was offset by lower Packaging rolled product shipments. Revenue of €736 million was up 14% from Q2 2016 due to higher aluminium prices. The company reported an adjusted EBITDA of €98 million in the first half of 2017.
In the Aerospace & Transportation division, Q2 adjusted EBITDA of €41 million, a significant increase from Q2 2016 due to better price and mix, strong operating cost performance and continued success in developing TID end markets. Shipments of 63k metric tons increased 2% from Q2 2016 and revenue of €366 million increased by 10% from Q2 2016 on higher aluminium prices. The company reported an adjusted EBITDA of €69 million in the first half of 2017.
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The Automotive Structures & Industry segment achieved a record level adjusted EBITDA of €33 million in Q2 2017 as a result of higher shipments of both Automotive and Other extruded products on strong market demand and cost control. Shipments increased 5% to 62kt and revenue increased by 8% to €288 million as a result of higher aluminium prices. The company reported an adjusted EBITDA of €64 million in the first half of 2017.
Other highlights from the press release are:
•Significant improvement in H1 2017 Cash Flows from Operations and Free Cash Flow compared to H1 2016
•Completed a $300 million pan U.S. ABL and a new €100 million inventory based revolving credit facility
•“Project 2019” initiatives underway and already showing benefits
•Intend to move corporate domicile to France and delist from Euronext to simplify corporate structure and reduce costs
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