European value-added aluminium firm Constellium NV released results for the fourth quarter and full year of 2021 this week. Despite the ongoing challenging marketplace occasioned by the global COVID-19 pandemic, Constellium turned in largely positive numbers for both periods.
In the year’s final quarter Constellium shipped 385 thousand metric tons of aluminium product, better by 3 percent on the year. Revenue rose by 37 percent on the year to €1.7 billion, while net income fell from €26 million in 2020 to €7 million in 2021. Adjusted EBITDA rose by one-third on the quarter to €147 million, while the firm had €118 million in cash from operations and €14 million of free cash flow.
For the year Constellium’s shipments grew by 10 percent to 1.6 million metric tons. Revenue rose by 26 percent to €6.2 billion, while net income totaled €262 million, reversing a net loss of €17 million in 2020. Adjusted EBITDA rose by a quarter to €581 million, while cash from operations for the year came to €357 million with a free cash flow of €135 million.
Jean-Marc Germain, Constellium’s Chief Executive Officer, said in a press release that the firm delivered strong results despite the continuing global coronavirus pandemic.
“Constellium delivered a strong finish to 2021, and I want to thank each of our 12,000 employees for their commitment and relentless focus on safety and serving our customers. 2021 was another year of challenges and uncertainties brought by the COVID-19 crisis, including inflationary pressures across the business, weakness in aerospace demand, semiconductor shortages in automotive and other supply chain issues. Despite these challenges, we achieved record Adjusted EBITDA of €581 million, including record results in both P&ARP and AS&I. We generated solid Free Cash Flow of €135 million and reduced our leverage to 3.4x.
“Looking ahead to 2022, we expect demand to remain strong in our packaging and industrial markets. We are starting to see the beginnings of a recovery in aerospace demand and expect year over year growth in shipments in the coming quarters. In automotive, we expect demand to remain low to start the year as the semiconductor shortage persists and to improve in the second half of the year. We are expecting inflationary pressures to continue at an elevated level throughout 2022, though we are confident in our ability to offset most of the impact with improved pricing and our relentless focus on cost control.”
“Based on our current outlook, we expect Adjusted EBITDA of €600 million to €620 million and Free Cash Flow in excess of €150 million in 2022,” predicted Germain. “In April, we will hold our Analyst Day at our Muscle Shoals facility in Alabama, where we expect to update you on our businesses, detail our plans for the future, establish new long-term guidance and present our 2030 sustainability strategy.”
Constellium, based in France, 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 €6.2 billion of revenue in 2021.