Finance
Constellium N.V. (NYSE: CSTM) today reported results for the fourth quarter and full year ended December 31, 2018.
Fourth quarter 2018 highlights:
Shipments of 370 thousand metric tons, up 6% compared to Q4 2017
Revenue of €1.4 billion, up 12% compared to Q4 2017
Net loss of €57 million compared to net loss of €80 million in Q4 2017
Adjusted EBITDA of €104 million, up 1% compared to Q4 2017
Full year 2018 highlights:
Shipments of 1.5 million metric tons, up 3% compared to 2017
Revenue of €5.7 billion, up 9% compared to 2017
Net income of €190 million compared to net loss of €31 million in 2017
Adjusted EBITDA of €498 million, up 11% compared to 2017
Net debt / LTM Adjusted EBITDA of 4.0x compared to 4.2x at December 31, 2017
Project 2019 run-rate cost savings of €43 million achieved as of December 31, 2018
Jean-Marc Germain, Constellium’s Chief Executive Officer said, “Constellium delivered strong results in 2018. Our Adjusted EBITDA of €498 million increased by 11%, coming in well above our initial ‘high single digit’ guidance. Further, each of our three business units delivered record annual Adjusted EBITDA. We also made significant progress on strategic initiatives in 2018, notably the sale of the North Building at Sierre and the agreement to acquire our partner’s interest in our Bowling Green joint venture. Overall, I am proud of the achievements our team made during the year, and I am very optimistic about the prospects for our future.”
Mr. Germain continued, “We are maintaining our guidance of Adjusted EBITDA growth of 8% to 10% and Free Cash Flow in excess of €50 million in 2019. Our focus is on delivering our long-term targets of Adjusted EBITDA over €700 million and leverage of 2.5x in 2022. We are committed to increasing value for our shareholders through the execution of our strategy.”
Forward Looking Statement
Certain statements contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may contain “forward-looking statements” with respect to our business, results of operations and financial condition, and our expectations or beliefs concerning future events and conditions. You can identify forward-looking statements because they contain words such as, but not limited to, “believes,” “expects,” “may,” “should,” “approximately,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” likely,” “will,” “would,” “could” and similar expressions (or the negative of these terminologies or expressions). All forward-looking statements involve risks and uncertainties. Many risks and uncertainties are inherent in our industry and markets. Others are more specific to our business and operations. These risks and uncertainties include, but are not limited to, economic downturn, the loss of key customers, suppliers or other business relationships; disruption to business operations; the inability to meet customer quality requirements; delayed readiness for the North American Auto Body Sheet market, the capacity and effectiveness of our hedging policy activities, failure to retain key employees, and other risk factors set forth under the heading “Risk Factors” in our Annual Report on Form 20-F, and as described from time to time in subsequent reports filed with the U.S. Securities and Exchange Commission. The occurrence of the events described and the achievement of the expected results depend on many events, some or all of which are not predictable or within our control. Consequently, actual results may differ materially from the forward-looking statements contained in this press release. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.