28 JULY 2017AlCircle.com
Constellium reports record adjusted EBITDA during Q2 2017; revenue up 12%
Edited by : Heena Iqbal
3 min read
<p>Constellium, a leader in the manufacturing of high-quality aluminium products and solutions, yesterday reported results for second quarter ended June 30, 2017. The company reported <strong>revenue </strong>of €1.4 billion in Q2, up 12% from Q2 2016 due to higher aluminium prices.</p>
<p>The company reported <strong>net income </strong>of €15 million improved from €9 million in the second quarter of 2016. The company posted an <strong>adjusted EBITDA</strong> of €127 million for the second quarter of 2017, up 19% from Q2 2016.</p>
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<p>Constellium reported <strong>total shipments</strong> of 383k metric tons, down 1% compared to the second quarter of 2016 on lower shipments of packaging and automotive rolled products.</p>
<p>For <strong>Packaging & Automotive Rolled Products division, </strong>Q1 adjusted EBITDA of €57 million, a slight increase from Q2 2016. In Q2, shipments of 258k metric tons declined 3% from Q2 2016 as a 31% increase in Automotive rolled product shipments was offset by lower Packaging rolled product shipments. Revenue of €736 million was up 14% from Q2 2016 due to higher aluminium prices. The company reported an adjusted EBITDA of €98 million in the first half of 2017.</p>
<p>In the <strong>Aerospace & Transportation</strong> division, Q2 adjusted EBITDA of €41 million, a significant increase from Q2 2016 due to better price and mix, strong operating cost performance and continued success in developing TID end markets. Shipments of 63k metric tons increased 2% from Q2 2016 and revenue of €366 million increased by 10% from Q2 2016 on higher aluminium prices. The company reported an adjusted EBITDA of €69 million in the first half of 2017.</p>
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<p><strong>The Automotive Structures & Industry segment</strong> achieved a record level adjusted EBITDA of €33 million in Q2 2017 as a result of higher shipments of both Automotive and Other extruded products on strong market demand and cost control. Shipments increased 5% to 62kt and revenue increased by 8% to €288 million as a result of higher aluminium prices. The company reported an adjusted EBITDA of €64 million in the first half of 2017.</p>
<p><strong>Other highlights from the press release are:</strong></p>
<p>•Significant improvement in H1 2017 Cash Flows from Operations and Free Cash Flow compared to H1 2016</p>
<p>•Completed a $300 million pan U.S. ABL and a new €100 million inventory based revolving credit facility</p>
<p>•“Project 2019” initiatives underway and already showing benefits</p>
<p>•Intend to move corporate domicile to France and delist from Euronext to simplify corporate structure and reduce costs</p>
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