Constellium reports higher EBITDA for Q4 and 2016; cuts down net loss

Constellium, a leading manufacturer of high-quality aluminium products and solutions in the world has reported results for Q4 and full year 2016 today, March 9. Overall, the company reported an adjusted EBITDA of €81 million in Q4, up 8% YOY. For the full year 2016, the company reported adjusted EBITDA of €377 million, up 10% from 2015.

The company reported revenue of €1.2 billion in Q4, up 3% from Q4 2015 and €4.7 billion for the full year 2016, down 8% primarily due to lower metal prices. The company has cut net loss to €4 million in 2016 from €552 million in 2015; Q4 2016 net loss too benefited YOY. The 2016 shipments of 1.5 million metric tons remain flat YOY and Q4 shipments of 344 kt was up 2% from Q4 2015.

Commenting on the results, Jean-Marc Germain, Constellium’s Chief Executive Officer said: “In 2016 Constellium’s Adjusted EBITDA grew 10% to €377 million reflecting continued operational improvement in our P&ARP segment, strong momentum and higher profitability in our AS&I segment and stable performance in our A&T segment despite evidence of softening aerospace demand at year end. We remain confident in the long-term demand across our targeted end markets and in our ability to continue to grow Adjusted EBITDA in the high single digits annually over the next three years.”

The Automotive Structures & Industry segment achieved an adjusted EBITDA of €21 million in Q4 2016; representing an 11% increase YOY. Q4 shipments increased 4% to 49kt YOY and revenue decreased by 3% to €233 million. For the full year 2016, Adjusted EBITDA was €102 million, an increase of 27% from 2015 driven by increased volumes, and improved price and mix due to strong end market demand in automotive and industry sector.2016 shipments increased by 3% and revenues dropped 4% due to lower LME prices.

In the Aerospace & Transportation division, Q4 adjusted EBITDA decreased by 13% to €22 million due to low prices, weaker mix of products and seasonal demand lapse and stiff competition. Shipments increased 16% and revenue increased by 4% to €323 million. For 2016, adjusted EBITDA of €103 million remains flat YOY. Shipments increased by 5% from 2015 and revenue decreased 4% primarily due to lower average metal prices. The company is optimistic about long-term demand in aerospace segment.  

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For Packaging & Automotive Rolled Products division, Q4 adjusted EBITDA was up 19% to €43 million YOY. Shipments were flat and revenue was up 6% due to higher metal prices. For the full year 2016, Adjusted EBITDA was up 10% to €201 million from €183 million in 2015, primarily due to operational improvements, particularly at Muscle Shoals. Shipments dropped slightly, reflecting decreases in Packaging rolled products and Specialty and other thin-rolled products, due to lower foil stock demand. These decreases were partially offset by an increase of 25kt, or 28%, in Automotive rolled products shipments. Revenue dropped 9% to €2.5 billion due to low metal prices.