Constellium reports net income of €13 million in Q1 2017; revenue up 15%

Constellium, a leading manufacturer of high-quality aluminium products and solutions in the world has reported results for first quarter ended March 31, 2017. The company reported an adjusted EBITDA of of €93 million for the first quarter of 2017, up 1% YOY.

The company reported revenue of €1.3 billion in Q1, up 15% from Q1 2016 due to higher metal prices and increased shipments. The company reports net income of €13 million improved from a net loss of €8 million in the first quarter of 2016. Constellium reported total shipments of 375k metric tons, up 4% YOY on higher shipments of packaging and automotive products.

Jean-Marc Germain, Constellium’s Chief Executive Officer said, “I am pleased with our first quarter results. AS&I continued its strong momentum and reported record Adjusted EBITDA, while A&T and P&ARP overcame headwinds to deliver solid results. We remain optimistic on the prospects for 2017 and confident in our ability to deliver high single digit Adjusted EBITDA growth this year.”

Mr. Germain continued, “We are focused on executing our strategy and increasing shareholder value…We continue to expect Adjusted EBITDA growth in the high single digits annually, leading to over €500 million of Adjusted EBITDA in 2020.”

For Packaging & Automotive Rolled Products division, Q1 adjusted EBITDA of €41 million was down slightly YoY due to higher maintenance expense and other costs related to upgrades, particularly at Muscle Shoals. Adjusted EBITDA benefitted from higher shipments of 254k metric tons and improved mix in the quarter. Automotive rolled product shipments increased 28% to 34k metric tons. Revenue of €705 million was up 20% YoY as a result of higher metal prices and increased shipments.

The Automotive Structures & Industry segment achieved a record level adjusted EBITDA of €31 million in Q1 2017; representing a 13% increase YOY as a result of higher shipments of both Automotive and Other extruded products on strong market demand and cost control. Q1 shipments increased 7% to 60kt YOY and revenue increased by 10% to €286 million as a result of higher metal prices and increased shipments.  

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In the Aerospace & Transportation division, Q1 adjusted EBITDA decreased by 4% to €28 million due lower aerospace shipments as a result of excess inventory in the aerospace supply chain. This was partially offset by improved aerospace mix and solid cost control. Shipments of 61k metric tons decreased 3% YoY and revenue increased by 3% to €343 million due to higher metal prices, partially offset by lower shipments. Adjusted EBITDA per metric ton of €468 was in line with the same period in 2016.