Constellium ends Q1 with liquidity of €411 million, refinances business following IPO in May

By Lisa Kerner

Charlotte, N.C., June 17 - Constellium NV ended its first quarter of 2013 with cash and cash equivalents of €165 million, net debt of €216 million and liquidity of €411 million, according to the company's earnings conference call on Monday.

Liquidity included €38 million of undrawn credit facilities under the company's ABL facility and €208 million available under factoring arrangements. As of March 31, Constellium had drawn €34 million under the ABL facility.

"The balance sheet is strong with no near-term debt maturities, strong liquidity and low leverage," said chief financial officer Didier Fontaine.

According to chief executive officer Pierre Vareille, the company "achieved a number of important milestones since the quarter's end" on March 31.

In addition to completing its initial public offering about three weeks ago, Constellium refinanced the business with a new €356 million term loan, distributed €147 million to its pre-IPO shareholders and divested two plants in France. The company also saw its Moody's ratings go from B1 to B2.

Financial highlights

Constellium reported first-quarter adjusted EBITDA of €37 million, a 20% increase from the year-ago period.

Cash flow from operating activities, excluding margin calls, improved 13% year-over-year.

Revenues were down about 3% for the quarter at €911 million, reflecting lower London Metal Exchange prices, according to the company's earnings news release.

The company had a net loss for the three-month period of €2 million compared to a profit of €55 million in the three months ended March 31, 2012.

Constellium is a Paris-based designer and manufacturer of aluminum products and components.

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