Constellium sees shipments decrease 10 percent year over year

Paris-headquartered aluminum products company Constellium SE has reported its financial results for the fourth quarter and full-year ended Dec. 31, 2020.

The company says its fourth-quarter 2020 highlights include:

• shipments of 374,000 metric tons, up 2 percent compared with Q4 2019;
• revenue of 1.2 billion euros ($1.45 billion), down 9 percent compared with Q4 2019;
• net income of 26 million euros ($31.5 million) compared with net income of 22 million euros ($26.7 million) in Q4 2019;
• adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of 111 million euros ($134.0 mullion), down 8 percent compared with Q4 2019; and
•  cash from operations of 71 million euros ($86 million) and free cash flow of 28 million euros ($33.9 million).   

Full-year 2020 highlights, according to the company, include:

• shipments of 1.4 million metric tons, down 10 percent compared with 2019;
• revenue of 4.9 billion euros ($5.9 billion), down 17 percent compared with 2019;
• net loss of 17 million euros ($20.6 million) compared with net income of 64 million euros ($77.6 million) 2019;
• adjusted EBITDA of 465 million euros ($563.6 million), down 17 percent compared with 2019; and
• cash from operations of 334 million euros ($$404.8 million) and free cash flow of 157 million euros ($190.3 million).

In the news release that accompanied the company’s earnings, Jean-Marc Germain, Constellium CEO says, “Constellium delivered resilient results in 2020 despite the significant challenges presented by the COVID-19 pandemic. We reacted quickly to the crisis, demonstrating strong cost control while retaining the ability to meet demand from recovering markets. Our Packaging & Rolled Products segment delivered record adjusted EBITDA with strong operational performance at all plants. Automotive Structures & Industry turned the corner after the operational challenges of 2019 and is on track to return to historical profitability levels. While weaker aerospace demand challenged our Aerospace & Transportation business, the team delivered impressive cost reductions and remains ready for a potentially strong rebound after the current destocking period has run its course.”

He adds, “We are seeing a sharp increase in the focus on sustainability and the related megatrends, namely lightweighting in transportation, the electrification of the automotive fleet and customer preference for infinitely recyclable aluminum cans. Constellium is well-positioned to be a significant beneficiary of each of these trends. Constellium recently demonstrated its commitment to sustainability by issuing a bond linked to our sustainability targets. We are proud to be a pioneer with this first sustainability-linked note issuance in the metals sector."

Germain concludes that Constellium is “stronger” after the actions it took in response to the pandemic. “I am optimistic about Constellium's prospects in 2021 despite continued macroeconomic uncertainty. While this uncertainty leaves us unable to provide adjusted EBITDA guidance beyond the first quarter, we remain firmly committed to consistent free cash flow generation and expect it to be over 100 million euros ($121.2 million) in 2021," he says.