European value-added aluminium firm Constellium NV reported results for the final quarter and full year of 2020 earlier this week. The firm’s bottom line struggled last year, but management says the difficulties last year prepared it to be successful this year.
For the year’s fourth quarter Constellium shipped 374 thousand metric tons of product, up by 2 percent on the year. Revenue was off by 9 percent in the quarter at €1.2 billion, while net income was less by €4 million at €26 million. Adjusted EBITDA was also off on the quarter, less by 8 percent at €111 million.
Over the course of last year Constellium saw shipments drop by a tenth to 1.4 million metric tons. Revenue fell by 17 percent to €4.9 billion, while 2019’s net income of €64 million was followed by a net loss of €17 million last year. Adjusted EBITDA also fell, down by 17 percent to €465 million.
Jean-Marc Germain, Constellium’s Chief Executive Officer, opined that his firm is in a better place in 2021 thanks to its responses to the challenges it faced last year.
“We are seeing a sharp increase in the focus on sustainability and the related mega-trends, namely lightweighting in transportation, the electrification of the automotive fleet, and customer preference for infinitely recyclable aluminium cans. Constellium is well-positioned to be a significant beneficiary of each of these trends. Constellium recently demonstrated its commitment to sustainability by issuing a bond linked to our sustainability targets. We are proud to be a pioneer with this first sustainability-linked note issuance in the metals sector.”
“I firmly believe that Constellium is a stronger company after the aggressive actions taken in response to the COVID-19 crisis,” he went on. “Looking forward to 2021, our top priority remains the health and safety of our employees. I am optimistic about Constellium’s prospects in 2021 despite continued macroeconomic uncertainty. While this uncertainty leaves us unable to provide Adjusted EBITDA guidance beyond the first quarter, we remain firmly committed to consistent Free Cash Flow generation and expect it to be over €100 million in 2021.”
Constellium, based in Amsterdam, was founded 1855 as Henri Merle et Compagnie and subsequently renamed Pechiney in 1950. Pechiney was purchased by Alcan in 2003, which was purchased by Rio Tinto in 2007. In 2011 Rio Tinto sold Alcan Engineered Products to Apollo Management (51%) and FSI (10%). Constellium produces rolled and extruded aluminium products from various alloys, bringing in €5.9 billion of revenue in 2019.