Constellium N.V. (NYSE and NYSE Euronext: CSTM) today reported results for the full year and fourth quarter ended December 31, 2014. These results do not include the acquisition of Wise Metals, which closed on January 5, 2015.
- 2014 Shipments of 1.1 million metric tons, up 4% versus prior year
- 2014 Revenue of €3.7 billion, up 5%
- 2014 Adjusted EBITDA of €275 million, including a €23 million unfavorable impact of higher metal premiums, down 2% from €280 million in 2013
- Adjusted free cash flow remains positive despite higher capital expenditures related to previously announced projects
- 2014 Diluted EPS of €0.48; EPS excluding unrealized losses on derivatives of €0.84
- Automotive rolled product shipments up 37% in 2014 versus 2013
- Automotive extruded product shipments up 28% in 2014 versus 2013
- Wise Metals acquisition closed on January 5, 2015 and Body-in-White projects progressing as scheduled
- On track for near term decision to add a second Body-in-White finishing line in the U.S.
Constellium’s Adjusted EBITDA for 2014 was €275 million, a slight decrease from the 2013 Adjusted EBITDA of €280 million, and which includes an unfavorable impact of higher metal premiums of €23 million, partially compensated by a positive foreign exchange effect of €12 million. Adjusted EBITDA per metric ton for 2014 was €259, a decrease of €14 per metric ton from €273 in 2013. An overall strong performance in both the Automotive Structures and Industry (AS&I) and Packaging and Automotive Rolled Products (P&ARP) segments was offset by Aerospace and Transportation’s (A&T) weaker performance as a result of continuing operational challenges and capacity constraints.
Revenues for 2014 were €3.7 billion, which represented an increase of 5%, or €171 million, from 2013. On a like-for-like basis, revenues increased by 2%, excluding the impact of movements in London Metal Exchange (LME) metal prices, premiums, and currency exchange rates, when compared to the full year 2013. Shipments in 2014 were 1,062k metric tons, up 4% from 2013, driven mainly by an increase of 31% in automotive rolled and extruded product shipments, reaching 16% of our total shipments for 2014.
In the fourth quarter of 2014, Adjusted EBITDA was €51 million, a decrease of 14% from €59 million in Q4 2013, driven primarily by operational challenges from A&T, including a €5 million impact from the previously disclosed outage in our Ravenswood facility, as well as continued premium increases. Adjusted EBITDA per metric ton for the fourth quarter 2014 was €207, down from €253 in the fourth quarter of 2013.
Revenues were €936 million in the fourth quarter of 2014, an increase of 16% from €806 million in the same period of 2013 stemming from a combination of increased volumes, higher LME metal prices, and movements in foreign currency exchange rates. On a like-for-like basis, revenues increased by 3% in the fourth quarter of 2014, excluding the impact of movements in LME metal prices, premiums, and currency exchange rates, when compared to the same period in 2013. In the fourth quarter of 2014, shipments were 247k metric tons, a 6% growth from the fourth quarter 2013 shipments.
Commenting on 2014 results, Pierre Vareille, Constellium’s Chief Executive Officer said: “Strong 2014 performance in our AS&I and P&ARP segments offset continued headwinds from higher metal premiums and operational challenges in A&T. The integration of Wise Metals is proceeding well and we are moving quickly to integrate them into our global portfolio. Going forward, we believe the long-term potential for our targeted markets is increasingly favorable and we expect to continue our drive to enhance shareholder value. ”
