Constellium's shipments decline in Q1 relative to 2020

Constellium SE, headquartered in Paris, has reported results for the first quarter of 2021, ended March 31. The aluminum products company saw its shipments, which totaled 385,000 metric tons, decline 2 percent from Q1 2020. Its revenue also was 7 percent lower than one year ago at 1.3 million euros ($1.57 million). However, Constellium's net income for the quarter was 48 million euros ($57.9 million) compared with a net loss of 31 million euros ($37.4 million) in the comparable quarter of 2020. The company's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled 121 million euros ($146 million), an 18 percent decrease from Q1 2020.

"Better-than-expected market demand and excellent cost performance propelled us above the top end of our adjusted EBITDA guidance range," says Jean-Marc Germain, Constellium chief executive officer. "[Packaging and Automotive Rolled Products] demonstrated strong cost control, which helped offset the effects of several one-off events. [Aerospace and Transportation] results continue to be negatively affected by weak aerospace demand; however, [Transportation, Industry and Defense] has been a bright spot, with improved demand in both the U.S. and Europe. [Automotive Structures and Industry] reported record first-quarter adjusted EBITDA and returned to historical levels of profitability. Finally, we continue to build on our track record of delivering consistent and significant free cash flow with 46 million euros ($55.5 million) generated in the first quarter.”

Germain adds, "I am optimistic about our prospects for the remainder of 2021, despite some lingering uncertainties. Our end markets, with the exception of aerospace, remain strong. We expect adjusted EBITDA of 510 million euros to 530 million euros ($615.6 million to $639.8 million) and free cash flow in excess of 100 million euros ($120.7 million) in 2021.” 

The company says its lower shipments in the Aerospace and Transportation segment in Q1 2021 were offset partially by higher shipments in the Automotive Structures and Industry segment. Constellium attributes its lower revenue for the quarter relative to last year to weaker price and mix and lower aerospace shipments, partially offset by higher metal prices. Net income of 48 million euros ($57.9 million) increased compared with the net loss of 31 million euros ($37.4 million) in the first quarter of 2020. The company says its decrease in adjusted EBITDA was because of weaker results in the Aerospace and Transportation segment, partially offset by improved results in the Automotive Structures and Industry and the Packaging and Automotive Rolled Products segments.

In the Packaging and Automotive Rolled Products segment, adjusted EBITDA increased 3 percent compared with the first quarter of 2020 primarily arising from strong cost control, partially offset by lower volumes and unfavorable foreign exchange translation, the company says. Shipments of 267,000 metric tons decreased 1 percent compared with the first quarter of the prior year on lower shipments of packaging rolled products from the company’s Muscle Shoals, Alabama, site resulting from the strike and adverse weather in February, largely offset by higher shipments of Automotive rolled products. Revenue of 766 million euros ($924.6 million) increased 2 percent compared with the first quarter of 2020 primarily because of higher metal prices, Constellium reports.

In the Aerospace and Transportation segment, adjusted EBITDA decreased 62 percent compared with the first quarter of 2020 primarily because of lower shipments and weaker price and mix related to challenging aerospace market conditions resulting from the COVID-19 pandemic, partially offset by strong cost control. Shipments of 48,000 metric tons decreased 18 percent compared with the first quarter of the prior year as lower aerospace rolled product shipments were partially offset by higher transportation, industry and defense rolled product shipments, Constellium notes. Revenue of 245 million euros ($295.7 million) decreased 32 percent compared with the first quarter of 2020 mainly arising from lower shipments and weaker price and mix.

In the Automotive Structures & Industry segment, adjusted EBITDA increased 10 percent compared with the first quarter of 2020 primarily in light of higher shipments on strong demand for automotive and other extruded products and solid cost control, partially offset by weaker price and mix, according to the company. Shipments of 70,000 metric tons increased 8 percent compared with the first quarter of the prior year on higher shipments of automotive and other extruded products. Revenue of 350 million euros ($422.5 million) increased 2 percent compared with the first quarter of 2020 mainly because of higher shipments and higher metal prices, partially offset by weaker price and mix.