Finance
Constellium SE (NYSE: CSTM) today reported results for the second quarter ended June 30, 2019.
Second quarter 2019 highlights:
Shipments of 413 thousand metric tons, up 4% compared to Q2 2018
Revenue of €1.5 billion, up 4% compared to Q2 2018
Net income of €17 million compared to net income of €55 million in Q2 2018
Adjusted EBITDA of €167 million, up 8% compared to Q2 2018
First half 2019 highlights:
Shipments of 826 thousand metric tons, up 5% compared to H1 2018
Revenue of €3.1 billion, up 7% compared to H1 2018
Net income of €41 million compared to net income of €31 million in H1 2018
Adjusted EBITDA of €302 million, up 10% compared to H1 2018
Cash from Operations of €260 million and Free Cash Flow of €126 million in H1 2019
Net debt / LTM Adjusted EBITDA of 4.1x as of June 30, 2019
Project 2019 run-rate cost savings of €68 million achieved as of June 30, 2019
Jean-Marc Germain, Constellium’s Chief Executive Officer said, “Constellium delivered record quarterly Adjusted EBITDA of €167 million in the second quarter. Our Aerospace and Transportation and Packaging and Automotive Rolled Products businesses maintained their momentum from the first quarter and each reported record quarterly Adjusted EBITDA, while Automotive Structures and Industry continued to experience incremental costs from new product launches and our footprint expansion. Based on our strong Free Cash Flow performance in the first half, we furthered our deleveraging by announcing in July the redemption of €100 million of our 2021 Senior Notes.”
Mr. Germain continued, “Based on our first half performance and our current outlook for 2019, we are increasing our Adjusted EBITDA guidance to 13% to 15% and our Free Cash Flow guidance to €125 million to €175 million. As a result, we now expect leverage to fall below 3.8x by the end of 2019. We remain focused on delivering on our long-term Adjusted EBITDA and leverage targets.”
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 the Redemption. 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, Constellium’s increased levels of indebtedness which could limit Constellium’s operating flexibility and opportunities, 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 in our registration statement on Form F-4 filed with the U.S. Securities and Exchange Commission on June 3, 2019, 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.