Amsterdam rolled and extruded aluminium leader Constellium N.V. released results for the third quarter and first nine months of 2019 earlier this week. Though the market facing the firm was challenging, Constellium delivered mostly positive results in both periods compared to 2018.
In the third quarter Constellium shipped 395 thousand metric tons of product, good for a 4-percent rise on the year. Revenue rose in the quarter by 2 percent on the year to €1.5 billion, while net income fell from €217 million in last year’s third quarter to €1 million in the just-ended quarter. Constellium reported an adjusted EBITDA for the quarter of €139 million, better by 18 percent on the year.
For the year’s first nine months Constellium saw shipments rise by 5 percent on a yearly basis to 1.2 million metric tons. Revenue for the period rose by 6 percent to €4.5 billion, but net income fell from €248 million in last year’s opening nine months to €42 million in this year’s corresponding period. However, adjusted EBITDA for the first nine months rose by 12 percent on the year to €441 million.
Jean-Marc Germain, Constellium’s Chief Executive Officer, hailed the success of the firm in delivering mostly positive results in a difficult global aluminium market.
“Constellium delivered solid third quarter results with strong Adjusted EBITDA growth and our third consecutive quarter of positive Free Cash Flow generation. Notably, our team was able to deliver these results despite more challenging than expected end market conditions during the third quarter and weaker than expected performance by Automotive Structures and Industry. I am pleased that both Packaging and Automotive Rolled Products and Aerospace and Transportation were able to maintain their strong momentum from the first half of the year.”
Going forward, Germain forecast a continuation of strong results for the coming months and years.
“Based on our current outlook, we expect Adjusted EBITDA growth of 12% to 14% and expect Free Cash Flow of €125 million to €175 million. We remain focused on increasing shareholder value by delivering on our long-term Adjusted EBITDA and leverage targets.”
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 €5.69 billion of revenue in 2018.