Photo courtesy of Constellium
Constellium SE has reported results for the second quarter of 2022, ended June 30, that include 424,000 metric tons in shipments, 4 percent more than in the comparable quarter of 2021, and revenue of 2.3 billion euros ($2.33 billion), which is 50 percent more than in the comparable quarter in 2021. The company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled 198 million euros ($201 million) for the quarter, an increase of 17 percent from the comparable quarter in 2021.
For the first half of 2022, the Paris-based company that designs and manufactures aluminum alloys and engineered solutions for a range of applications including cars, beverage cans and airplanes, says it shipped 825,000 metric tons, a 4 percent increase from the first half of 2021, while its revenue increased 49 percent to 4.3 billion euros, or $4.36 billion. Adjusted EBITDA totaled 365 million euros, or $370 million, for the first half of 2022, an increase of 25 percent from the comparable period in 2021.
“Demand remained strong across most end markets during the quarter, and our team continued to execute very well despite significant inflationary pressures,” says Constellium CEO Jean-Marc Germain says. “Both P&ARP [Packaging and Automotive Rolled Products] and AS&I [Automotive Structures and Industry] reported record adjusted EBITDA as continued strength in packaging and industry demand more than offset continued weakness in automotive caused by the semiconductor shortage and other supply chain challenges. A&T [Aerospace and Transportation] reported very strong second quarter adjusted EBITDA supported by a greater than 50 percent increase in aerospace shipments compared to the same quarter last year and continued strength in transportation, industry and defense (TID).”
Germain continues, "Macroeconomic and geopolitical risks remain elevated, and we expect inflationary pressures to continue, particularly for inputs like energy and regions more directly affected by the ongoing war in Ukraine. However, I am confident in our ability to continue to execute well through these challenging times.”
Given the company’s strong performance so far in 2022 and its outlook for the second half, Constellium is raising its guidance and expects adjusted EBITDA of 670 million euros to 690 million euros ($680 million to $700 million) for the year, he adds.
P&ARP
In Constellium’s P&ARP segment, or the second quarter adjusted EBITDA increased 2 percent compared with the second quarter of 2021 primarily because of improved price and mix, favorable metal costs, favorable foreign exchange translation and higher shipments, largely offset by higher operating costs mainly because of inflation, according to the company. Shipments of 292,000 metric tons increased 3 percent from the comparable quarter in 2021 in light of higher shipments of packaging and automotive rolled products. Revenue of 1.3 billion euros, or $1.32 billion, increased 49 percent compared with the second quarter of 2021 primarily because of higher metal prices and improved price and mix.
For the first half of 2022, adjusted EBITDA of 177 million euros, or $179.6 million, increased 9 percent compared with the first half of 2021 primarily owing to improved price and mix, favorable metal costs, favorable foreign exchange translation and higher shipments, partially offset by higher operating costs mainly because of inflation, the company says. Shipments of 568,000 metric tons increased 3 percent compared with the first half of 2021 on higher shipments of packaging rolled products. Revenue of 2.5 billion euros ($2.54 billion) increased 50 percent compared with the first half of 2021 primarily because of higher metal prices.
A&T
For the second quarter of 2022, adjusted EBITDA for Constellium’s A&T segment increased 50 percent compared with the second quarter of 2021 primarily because of improved price and mix and higher shipments, partially offset by higher operating costs arising from inflation and the production ramp-up in aerospace, the company says. Shipments of 60,000 metric tons increased 13 percent compared with the second quarter of 2021 on higher shipments of aerospace rolled products. Revenue of 461 million euros, or $468 million, increased 61 percent compared with the second quarter of 2021 on higher metal prices, improved price and mix and higher shipments.
For the first half of 2022, adjusted EBITDA of 116 million euros, or $118 million, increased 88 percent compared with the first half of 2021 primarily because of improved price and mix and higher shipments, partially offset by higher operating costs arising from inflation and the production ramp-up in aerospace. Shipments of 115,000 metric tons increased 14 percent compared to the first half of 2021 on higher shipments of aerospace and TID rolled products. Revenue of 846 million euros, or $858.6 million, increased 59 percent compared with the first half of 2021 primarily in light of higher metal prices, improved price and mix and higher shipments, Constellium says.
AS&I
In the AS&I segment for the second quarter of 2022, adjusted EBITDA increased 13 percent compared with the second quarter of 2021, also largely owing to improved price and mix and higher shipments, partially offset by higher operating costs mainly due to inflation, the company says. Shipments of 72,000 metric tons increased 4 percent compared with the second quarter of 2021 because of higher shipments of automotive and other extruded products. Revenue of 501 million euros, or $508 million, increased 45 percent compared with the second quarter of 2021 also largely because of higher metal prices and improved price and mix.
For the first half of 2022, adjusted EBITDA of 83 million euros, or $84.2 million, increased 6 percent compared with the first half of 2021 primarily owing to improved price and mix and higher shipments, partially offset by higher operating costs mainly arising from inflation. Shipments of 142,000 metric tons increased 2 percent compared with the first half of 2021 on higher shipments of other extruded products, partially offset by lower shipments of automotive extruded products, Constellium reports. Revenue of 1 billion euros, or $1.01 billion, increased 38 compared with the first half of 2021, again largely because of higher metal prices and improved price and mix.
For the second quarter of 2022, the net loss of 32 million euros, or $32.5 million, compares with net income of 108 million euros, or $109.6 million, in the second quarter of the prior year. The decrease in net income is primarily related to a 158 million euro, or $160.3 million, unfavorable change in unrealized gains and losses on derivatives mostly related to its metal hedging positions and higher selling and administrative expenses, partially offset by higher gross profit and a favorable change in income taxes, the company says.
For the first half of 2022, net income of 147 million euros, or $149.2 million, compares with net income of 156 million euros, or $158.3 million, in the first half of the prior year. Constellium says the decrease in net income is primarily related to a 130 million euro ($131.2 million) unfavorable change in unrealized gains and losses on derivatives mostly related to Constellium’s metal hedging positions and higher selling and administrative expenses, partially offset by higher gross profit and lower finance costs.