Amsterdam rolled and extruded aluminium titan Constellium N.V. reported financial and production results for the third quarter yesterday. Though shipments slipped slightly, financials for the quarter were strong.
In the just-ended quarter, Constellium shipped 374 thousand metric tons, a one-percent drop from last year’s third quarter total of 377 thousand metric tons. The firm accounts for the slight dip by pointing to lower shipments in the Packaging and Automotive Rolled Products.
Constellium reported revenue of €1.279 billion, a 7-percent increase year-on-year from last year’s total revenue of €1.199 billion. The company credits the increase to an overall rise in global aluminium prices.
Net income for the quarter totaled €21 million, 38 percent above last third quarter’s net income of €15 million, which Constellium indicates is largely due to better results from the Aerospace and Transportation and Automotive Structures and Industry business units.
Adjusted EBITDA for the quarter totaled €111 million, a 15-percent increase over last year’s third-quarter adjusted EBITDA of €97 million.
In the first nine months of the year Constellium reported shipments of 1.132 million metric tons, a one-percent increase year-on-year from last year’s three-month total of 1.126 million metric tons. Revenue in the period totaled €3.989 billion, an 11-percent rise over last year’s three-month number of €3.582 billion.
Net income rose significantly in the nine-month period, to €49 million this year from €16 million in the corresponding period last year, which was good for a 200-percent increase. Adjusted EBITDA for the first nine months came to €331 million, 12 percent above last year’s nine-month total of €296 million.
Constellium’s Chief Executive Officer Jean-Marc Germain praised the firm for its performance thus far this year, opining that more of the same was likely for the near future.
“Constellium delivered another quarter of strong performance. Automotive Structures and Industry reported record third quarter Adjusted EBITDA on solid operational performance and continued strong demand. Aerospace and Transportation built on the momentum of the first half and delivered substantially improved results. Packaging and Automotive Rolled Products results were comparable to the prior year despite continued incremental costs from our automotive readiness program in the U.S. On ‘Project 2019’, I am pleased with the progress that we have made and believe that we have substantial opportunities remaining.”
Germain went on to say that the results justified painting a brighter picture for the year-end total.
“Given our year-to-date performance and our current outlook, we are increasing our guidance for Adjusted EBITDA growth in 2017 to around 13%. This performance is another meaningful step toward achieving our guidance of over €500 million of Adjusted EBITDA in 2020. Our focus remains on delivering on our strategy and increasing value for our shareholders.”
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%). The firm produces rolled and extruded aluminium products from various alloys. The firm brought in €4.7 billion of revenue in 2016.