Constellium Shipments Fell By 11 Percent In Third Quarter

Constellium Shipments Fell By 11 Percent In Third Quarter

Amsterdam rolled and extruded aluminium leader Constellium N.V. released results for the third quarter of 2020 yesterday. A drop in demand due to the novel coronavirus pandemic impacted both production and profits during the quarter.

In the just-ended quarter Constellium shipped 354 thousand metric tons of product, down by 11 percent on the year. Revenue for the quarter totaled €1.2 billion, which was off by 20 percent from last year. Net income rose in the quarter from €1 million last year to €20 million in the just-ended quarter. Adjusted EBITDA totaled €126 million in the quarter, a 9-percent decline on the year.

For the year through September Constellium shipped 1.1 million metric tons of product, which was a decrease of 14 percent over 2019’s first nine months. Revenue fell by 20 percent in the period to €3.6 billion, and the firm turned in a net loss of €43 million, which nearly exactly reversed last year’s net profit of €42 million over the same period last year. Adjusted EBITDA dropped by 20 percent to €354 million through the year’s first nine months.

Constellium’s Chief Executive Officer Jean-Marc Germain commented on the quarter’s results in a related press release.

“I am very proud of our third quarter results, including our Free Cash Flow performance of €75 million in the quarter. Packaging & Automotive Rolled Products reported record quarterly Adjusted EBITDA. Aerospace & Transportation maintained a strong focus on costs in the face of difficult market conditions. Automotive Structures & Industry benefited from better-than-expected market conditions and improved operational performance in Automotive Structures. These results further demonstrate the benefits of our end market diversification and our intense focus on costs.”

“Based on our current outlook, we expect Adjusted EBITDA of €450 million to €460 million and Free Cash Flow generation of €100 million to €150 million in 2020,” Germain predicted.

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.