Constellium reports 22% growth in H1 EBITDA on improved shipments and higher aluminium prices

Constellium N.V. reported results for the second quarter ended June 30, 2018 on July 25. The aluminium product maker reported total shipments of 397 thousand tonnes in Q2 2018, up 4% YoY.  Automotive shipments increased 20% contributing significantly to net income.  The company reported revenue of €1.5 billion, up 7% YoY. Net income stood at €55 million compared to net income of €15 million in Q2 2017 and adjusted EBITDA stood at €151 million, up 19% YoY.

For the First half 2018, Constellium reported shipments of 785 thousand tonnes, up 4% compared to H1 2017. The H1 Revenue stood at €2.9 billion, up 6% compared to H1 2017. Net income increased to €31 million from €28 million in H1 2017 and adjusted EBITDA was up 22% YoY to €268 million. The company also reported cost savings of €32 million achieved as of June 30, 2018. Constellium also completed the sale of the North Building Assets of the Sierre plant in Switzerland to Novelis for €200 million in July.

Jean-Marc Germain, Constellium’s Chief Executive Officer said, “Constellium delivered strong results in the second quarter. Each business unit reported record quarterly Adjusted EBITDA. Healthy end market demand, solid operational performance, and a focus on reducing costs through Project 2019 contributed to our results. While global trade remains a source of uncertainty, we are optimistic about our prospects for the remainder of the year and are therefore increasing our Adjusted EBITDA growth guidance to a range of 11% to 13%.”

For the Packaging & Automotive Rolled Products (P&ARP) segment, adjusted EBITDA increased compared to Q2 2017 primarily due to higher volumes, including increased Automotive rolled product shipments, good cost control and favourable metal costs. Foreign exchange conversion and ramp up costs had a negative effect. Shipments increased 3% YoY to 266 thousand tonnes driven by 27% increase in Automotive rolled product shipments. Revenue increased 9 % to €801 million YoY on higher aluminium prices.

For H1 2018, adjusted EBITDA also increased 29% to €126 million. Adjusted EBITDA increased 29% to €126 million YoY on higher volumes and favourable metal costs and revenue increased 7% to €1.5 billion. Shipments increased 3% to 525 thousand metric tons.

For the Aerospace & Transportation (A&T) segment Q2 adjusted EBITDA increased from Q2 2017 due to good cost control and higher shipments. Shipments increased 1% 65 thousand tonnes due to slightly higher aerospace rolled product shipments. Revenue decreased 3% YoY to €356 million.  

For H1 2018, Adjusted EBITDA increased 12% to €77 million YoY. Shipments increased 4% to129 thousand tonnes YoY and revenue decreased 1% to €699 million.

For the Automotive Structures & Industry (AS&I) segment Q2 adjusted EBITDA increased from Q2 2017 primarily due to higher shipments of both Automotive and Other extruded products on strong market demand. Shipments increased 7% YoY to 66 thousand tonnes and revenue increased 13% to €327 million.

For H1 2018, adjusted EBITDA increased 17% to €75 million on higher shipments and improved price and mix. Shipments increased 8% to 131 thousand tonnes on higher shipments of both Automotive and Other extruded products. Revenue increased 12% to €644 million on higher shipments and prices.

The company expects its adjusted EBITDA growth to be in a range of 11% to 13% in 2018 and in the high single digits in 2019.