Constellium Q1 2019 revenue up 11% due to consolidation of Bowling Green & improved price, mix

Constellium reported results for the first quarter ended March 31, 2019.The company reported revenue of €1.5 billion in Q1 2019, up 11% compared to the first quarter of last year. This was due to the consolidation of Bowling Green and improved price and mix, partially offset by lower metal prices. Adjusted EBITDA increased 12% to €135 million on improved results in the Aerospace and Transportation and Packaging and Automotive Rolled Products segments.

Shipments increased 6% year-on-year to 413 thousand tons primarily due to the Packaging and Automotive Rolled Product segment.Net income of €24 million improved compared to a net loss of €24 million in the first quarter of 2018.

Jean-Marc Germain, Constellium’s Chief Executive Officer said, “Constellium delivered strong results in the first quarter of 2019. Adjusted EBITDA was a first quarter record and a 12% improvement over last year’s first quarter. Aerospace & Transportation had an exceptionally strong quarter, benefiting from strong end market demand and solid operational performance. Packaging & Automotive Rolled Products continues to execute on the ramp up of our automotive lines, with Bowling Green making notable strides. Automotive Structures & Industry results continue to be affected by costs related to the planned build out of our footprint. I am especially proud of our positive Free Cash Flow generation during the quarter. Our first quarter performance leaves me optimistic about our prospects for the remainder of 2019.”

In Packaging & Automotive Rolled Products (P&ARP) segment, in Q1 2019, adjusted EBITDA increased 14% YoY due to higher shipments and favourable metal costs. Revenue of €828 million increased 12% compared to the first quarter of 2018. Shipments increased 9% YoY to 281 thousand tons.

In Aerospace & Transportation (A&T) segment, in Q1 2019, adjusted EBITDA increased 44% YoY on improved price and mix and higher shipments on solid operational performance. Shipments of 66 thousand tons increased 2% compared to the first quarter of last year. Revenue stood at €378 million, up 10% YoY.

In Automotive Structures & Industry (AS&I) segment, in Q1 2019, adjusted EBITDA decreased 19% due to higher costs largely related to new product launches and our footprint expansion, partially offset by higher shipments. Shipments increased 1% YoY to 66 thousand tons. Revenue stood at €344 million, up 8% YoY.

Mr. Germain added, “We are maintaining our guidance of Adjusted EBITDA growth of 8% to 10% and Free Cash Flow in excess of €50 million in 2019. Our focus is on executing our strategy and delivering our 2022 targets of Adjusted EBITDA over €700 million and leverage of 2.5x. We are committed to increasing shareholder value.”