Constellium’s shipments grow 4 percent in Q3

Aluminum products company Constellium SE, headquartered in Amsterdam, has reported its financial results for its third quarter, which ended Sept. 30, revealing 4 percent growth in shipments, 2 percent growth in revenue and an 18 percent increase in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) compared with the third quarter of 2018.

During the third quarter of this year, Constellium shipped 395,000 metric tons. The company’s revenue was 1.5 billion euros ($1.67 billion), while its adjusted EBITDA was 139 million euros ($154 million). Net income for the quarter declined from 217 million euros ($241 million) in the third quarter of 2018 to 1 million euros ($1.1 million) in the third quarter of the current year.  

For the first nine months of the year, Constellium shipped 1.2 million metric tons, which was 5 percent more than in the comparable period in 2018. It reported revenue of 4.5 billion euros (nearly $5 billion), which was 6 percent more than in the first nine months of 2018. However, Constellium’s net income declined from 248 million euros ($275 million) in 2018 to 42 million euros ($46.6 million) in 2019. Its adjusted EBITDA was 441 million euros (roughly $490 million), which was 12 percent greater than in the first nine months of 2018.

The company’s cash from operations totaled 340 million euros ($378 million) and free cash flow of 157 million euros ($174 million) year to date.

Jean-Marc Germain, Constellium CEO, says, “Constellium delivered solid third-quarter results with strong adjusted EBITDA growth and our third consecutive quarter of positive free cash flow generation. Notably, our team was able to deliver these results despite more challenging than expected end-market conditions during the third quarter and weaker than expected performance by Automotive Structures and Industry. I am pleased that both Packaging and Automotive Rolled Products and Aerospace and Transportation were able to maintain their strong momentum from the first half of the year.”

Higher shipments in the Packaging and Automotive Rolled Products segment led to increased shipments overall for Constellium in the third quarter, according to the company.

Its increase in revenue for the quarter relative to the same period in 2018 is attributed to the consolidation of Constellium’s Bowling Green, Kentucky, operations and to improved price and mix, partially offset by lower metal prices.

The company cites improved results in its Packaging and Automotive Rolled Products and Aerospace and Transportation segments, partially offset by weaker results in the Automotive Structures and Industry segment related to higher costs associated with its footprint expansion and operational challenges in some of Constellium’s newer automotive programs, for its increase in adjusted EBITDA.

Constellium says it expects adjusted EBITDA growth to range from 12 percent to 14 percent in 2019 and more than 700 million euros ($777 million) of adjusted EBITDA in 2022.

To read a segment breakdown of the company’s earnings for the third quarter of 2019, click here.