Constellium Q1 2018 EBITDA up 26% on improved performance in all business segments

Constellium published results for the first quarter ended March 31, 2018. The company reported revenue of €1.4 billion in Q1 2018, up 4% compared to the first quarter of last year due to higher shipments and aluminium prices, partially offset by foreign exchange translation. Adjusted EBITDA increased 26% to €117 million on improved performance by each of its segments.

Constellium posted shipments of 388 thousand metric tons, up 4% compared to the first quarter of 2017 on higher shipments in each of its segments. Net loss of €24 million compares to net income of €13 million in the first quarter of 2017.

Jean-Marc Germain, Constellium’s Chief Executive Officer said, “Constellium delivered strong results in the first quarter of 2018. Steady end market demand and solid operational performance, including the benefit of Project 2019 savings, drove improvement across each of our segments.”

In Packaging & Automotive Rolled Products division, in Q1 2018, adjusted EBITDA increased 26% due to higher volumes, including a 39% increase in Automotive rolled product shipments, and favourable metal costs. Revenue of €738 million increased 5% from Q1 2017 on higher Automotive rolled product shipments and aluminium prices, partially offset by foreign exchange translation. Shipments of 259 thousand metric tons increased 2% from the first quarter of last year..

In the Aerospace & Transportation division, adjusted EBITDA increased 18% due to better price and mix and continued success in developing the TID end markets, partially offset by lower Aerospace rolled product shipments and foreign exchange translation. Shipments of 64 thousand metric tons increased 6% from first quarter of 2017

In the Automotive Structures & Industry segment, shipments increased 8% to 65 thousand metric tons and revenue increased 11% to €317 million on higher shipments.Adjusted EBITDA increased 16% due to higher shipments of both Automotive and Other extruded products on strong market demand, improved price and mix and solid cost control.

Germain said: “Despite uncertainties around global trade, our focus remains on executing our strategy and on increasing value for our shareholders. We reiterate our Adjusted EBITDA guidance of high single digit growth annually through 2020, leading to over €500 million in 2020, and our guidance to be Free Cash Flow positive in 2019.”

Constellium continues to evaluate the risk of temporary supply disruptions as a result of the sanctions on Rusal and is implementing countermeasures, where appropriate.

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