09 MARCH 2017AlCircle.com
Constellium reports higher EBITDA for Q4 and 2016; cuts down net loss
Edited by : Beethika Biswas
3 min read
<p>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.</p>
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<p>The company reported revenue of <strong>€1.2 billion in Q4</strong>, up 3% from Q4 2015 and <strong>€4.7 billion for the full year 2016</strong>, 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.</p>
<p>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.”</p>
<p>The <strong>Automotive Structures & Industry</strong> 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.</p>
<p>In the <strong>Aerospace & Transportation</strong> 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. </p>
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<p>For <strong>Packaging & Automotive Rolled Products division</strong>, 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.</p>
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