Aluminum products producer Constellium SE, headquartered in Paris, has announced that for the third quarter ended Sept. 30, it shipped 354,000 metric tons, or 11 percent less than in the same time last year. Its net income of 20 million euros ($23 million) and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of 126 million euros ($147 million) are 9 percent less than in Q3 of 2019.
Jean-Marc Germain, Constellium CEO says, “I am very proud of our third-quarter results, including our free cash flow performance of 75 million euros ($87 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."
Germain adds, "Based on our current outlook, we expect adjusted EBITDA of 450 million euros ($525 million) to 460 million euros ($537 million) and free cash flow generation of 100 million euros ($116 million) to 150 million euros ($165 million) in 2020."
For Packaging and Automotive Rolled Products in the third quarter of 2020, adjusted EBITDA increased 20 percent compared with the third quarter of 2019 primarily because of strong cost control, partially offset by lower shipments, the company says. Shipments of 258,000 metric tons decreased 7 percent compared with the third quarter of 2019 in light of lower shipments of packaging and specialty products. Revenue of 672 million euros ($784 million) decreased 15 percent compared with the third quarter of 2019 primarily because of lower metal prices and lower shipments.
For the first nine months of 2020, adjusted EBITDA was comparable to the first nine months of 2019 in light of strong cost control offset by lower shipments. Shipments of 748,000 metric tons decreased 11 percent compared with the first nine months of 2019, with lower shipments across packaging, automotive and specialty products. Revenue of 2 billion euros ($2.3 billion) decreased 18 percent compared with the first nine months of 2019 primarily because of lower shipments and lower metal prices, Constellium says.
In Aerospace and Transportation, adjusted EBITDA for the quarter decreased 77 percent compared with the third quarter of 2019 primarily because of lower shipments arising from continued challenging market conditions from the COVID-19 pandemic, partially offset by strong cost control. Shipments of 36,000 metric tons decreased 37 percent compared with the third quarter of 2019 because of lower shipments of aerospace and transportation, industry and defense (TDI) products. Revenue of 202 million euros ($236 million) decreased 43 percent compared with the third quarter of 2019 because of lower shipments and lower metal prices.
For the first nine months of 2020, adjusted EBITDA decreased 41 percent compared with the first nine months of 2019 primarily because of lower shipments, partially offset by strong cost control and improved price and mix, Constellium says. Shipments of 140,000 metric tons decreased 25 percent compared with the first nine months of 2019, with lower shipments of aerospace and TID products in particular. Revenue of 811 million euros ($947 million) decreased 27 percent compared with the first nine months of 2019 arising from lower shipments and lower metal prices, partially offset by improved price and mix
For Automotive Structures and Industry in the third quarter of 2020, adjusted EBITDA increased 25 percent compared with the third quarter of 2019 because of strong cost control, according to the company. Shipments of 60,000 metric tons decreased 3 percent compared with the third quarter of 2019 on lower shipments of industry products. Revenue of 304 million euros ($355 million) decreased 9 percent compared with the third quarter of 2019 primarily in light of lower metal prices and lower shipments.
For the first nine months of 2020, adjusted EBITDA decreased 23 percent compared with the first nine months of 2019 primarily because oflower shipments, partially offset by strong cost control. Shipments of 169,000 metric tons decreased 13 percent compared with the first nine months of 2019 on lower shipments of automotive and industry products. Revenue of 868 million euros ($1 billion) decreased 15 percent compared with the first nine months of 2019 due to lower shipments and lower metal prices.