Constellium reports Full-Year and Q4 2015 financial results

Constellium N.V. has reported results for the full year and fourth quarter ended December 31, 2015. These results include the acquisition of Wise Metals, which closed on January 5, 2015.

Key Highlights:

• 2015 Shipments of 1.5 million metric tons, up 39 per cent from 1.1 million in 2014
• 2015 Revenue of €5.2 billion, up 41 per cent from €3.7 billion in 2014
• 2015 Adjusted EBITDA of €343 million, up 25 per cent from €275 million in 2014
• Improved year-end leverage to below 5x and liquidity to €733 million from the prior quarter, including €145 million from the revolving credit facility
• 2015 Diluted EPS of (€5.27) reflecting substantial impairment charges
• Expanding joint venture with UACJ to establish a leadership position in the growing North American Body-in-White market, reducing expected capital investment from $620 million to approximately $340 million
• Plan to launch a secured corporate bond offering of approximately $400 million
• CEO to retire in 2016

Constellium’s Adjusted EBITDA for 2015 was €343 million, an increase of €68 million, or 25 per cent, from the 2014 Adjusted EBITDA, driven by the acquisition of Wise Metals, record performance in the Automotive Structures and Industry (AS&I) segment, and recovery in the Aerospace and Transportation (A&T) segment. Adjusted EBITDA in 2015 also included a favorable year-over-year effect from metal premiums of €15 million and a foreign exchange effect of €14 million offset by higher costs in Holdings and Corporate as compared with 2014.

Adjusted EBITDA per metric ton for 2015 was €232, a decrease of 10 per cent from 2014, reflecting a higher proportion of packaging in our product mix as a result of the Wise Metals acquisition.

Revenues for 2015 were €5.2 billion, which represented an increase of 41 per cent from 2014 resulting primarily from the integration of the Muscle Shoals facility. Shipments in 2015 were 1,478k metric tons, up 39 per cent from 2014, driven mainly by the integration of Wise Metals.

In the fourth quarter of 2015, Adjusted EBITDA was €76 million, an increase of 48 per cent from €51 million in Q4 2014 as a result of the inclusion of Muscle Shoals. Adjusted EBITDA per metric ton for the fourth quarter 2015 was €224, an increase from €207 in Q4 2014. In the fourth quarter of 2015, shipments were 337k metric tons, a 36 per cent growth from the Q4 2014 shipments.

Commenting on 2015 results, Pierre Vareille, Constellium’s Chief Executive Officer said: “2015 showed marked improvement in our performance, particularly in our A&T and AS&I segments...We expect to launch a secured corporate bond offering to provide ample liquidity as a prudent move to allow us to safely carry forward the implementation of our strategy... I believe Constellium is on a firm footing with newly invested capacity and well positioned to capitalize on the opportunities in our industry, particularly in Body-in-White, aerospace and automotive extruded products.”

In addition, Pierre Vareille announced, “I have informed the Board of my desire to retire during the course of 2016, and the company is working to ensure a smooth transition, which may occur this summer. At the Board’s request, I have agreed to remain in my current role until my successor is appointed, and to thereafter become an advisor to the Board to facilitate the transition.”