Constellium sees shipments decline, revenue rise year over year in Q3
Constellium sees shipments decline, revenue rise year over year in Q3
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Paris-based Constellium SE, a global manufacturer of aluminum rolled products, extruded products and structural parts, has reported financial results for its third quarter of 2022, ended Sept. 30, that show a 2 percent decrease in shipments and a 27 percent increase in revenue relative to the same quarter in 2021.
The company shipped 387,000 metric tons in the quarter and reported revenue of 2 billion euros, or $2.01 billion. Its net income for the quarter was 131 million euros, or $131.66 million, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was 160 million euros, or $160.81 million, a 12 percent increase over Q3 2021 EBITDA.
For the nine months ended Sept. 30, Constellium’s shipments increased 2 percent to 1.2 million metric tons compared with the same period in 2021, while revenue increased 41 percent to 6.3 billion euros, or $6.33 billion, and adjusted EBITDA increased 21 percent to 525 million euros, or $527.6 million.
CEO Jean-Marc Germain says the company’s record quarterly adjusted EBITDA includes record third-quarter performances by its Aerospace & Transportation (A&T) and Automotive Structures & Industry (AS&I) segments. “Looking across our end markets, packaging demand continues to be resilient. Our shipments were down in the quarter due to operating challenges at our Muscle Shoals [Alabama] facility. Automotive shipments were up double digits in the quarter versus last year with new platform launches driving our growth, but we continue to be impacted by the semiconductor shortage and other supply chain challenges. In aerospace, demand is very strong with shipments up around 50 percent compared to last year for the second quarter in a row. While we are seeing signs of weakness across certain industrial markets, we like our end market positioning.”
Germain adds, “Macroeconomic and geopolitical risks remain elevated, and we expect significant inflationary pressures to continue, particularly for inputs like energy and in regions more directly affected by the ongoing war in Ukraine.” However, he says he is confident the company can manage through these challenging times.
“We expect recent demand trends in our markets to continue through the remainder of 2022,” Germain continues. “Based on our current outlook, in 2022 we expect adjusted EBITDA at the low end of our range of 670 million euros to 690 million euros ($673.34 million and $693.5 million) and free cash flow in excess of 170 million euros ($170.86 million).”
Constellium says its shipments in the third quarter were lower in light of lower shipments in the Packaging & Automotive Rolled Products segment, which were partially offset by higher shipments in the A&T and AS&I segments. The company attributes the year-over-year quarterly revenue increase to improved price and mix and higher metal prices. Constellium says stronger results in A&T, AS&I and Holdings & Corporate segments contributed to its higher quarterly EBITDA relative to Q3 2021, though their contributions were partially offset by weaker results in Packaging & Automotive Rolled Products (P&ARP).
In its P&ARP segment, adjusted EBITDA decreased 17 percent compared with the third quarter of 2021 as a result of lower shipments and higher operating costs primarily from inflation and operating challenges at Constellium’s Muscle Shoals facility, which resulted in higher maintenance and supplies costs. Shipments of 267,000 metric tons decreased 5 percent compared with the third quarter of the prior year in light of lower shipments of packaging and specialty rolled products, partially offset by higher shipments of automotive rolled products. Revenue, however, increased 15 percent compared with the prior year’s third quarter primarily because of improved price and mix and higher metal prices, partially offset by lower shipments, the company says.
In Constellium’s A&T segment, adjusted EBITDA increased 136 percent compared with the third quarter of 2021 primarily because of higher shipments, improved price and mix and favorable foreign exchange translation, partially offset by higher operating costs in light of inflation and the production ramp-up in aerospace. Shipments of 55,000 metric tons increased 6 percent compared with the third quarter of 2021 on higher shipments of aerospace rolled products, partially offset by lower shipments of Transportation, Industry and Defense rolled products.
In its AS&I segment, adjusted EBITDA increased 7 percent in the third quarter compared with the third quarter of 2021 primarily because of higher shipments and improved price and mix, partially offset by higher operating costs mainly arising from inflation, Constellium says. Shipments of 65,000 metric tons increased 4 percent compared with the third quarter of 2021 because of higher shipments of automotive extruded products.
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Source: Recycling Today
Constellium sees shipments decline, revenue rise year over year in Q3
<![CDATA[Paris-based Constellium SE, a global manufacturer of aluminum rolled products, extruded products and structural parts, has reported financial results for its third quarter of 2022, ended Sept. 30, that show a 2 percent decrease in shipments and a 27 percent increase in revenue relative to the same quarter in 2021.The company shipped 387,000 metric tons in the quarter and reported revenue of 2 billion euros, or $2.01 billion. Its net income for the quarter was 131 million euros, or $131.66 million, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was 160 million euros, or $160.81 million, a 12 percent increase over Q3 2021 EBITDA. For the nine months ended Sept. 30, Constellium’s shipments increased 2 percent to 1.2 million metric tons compared with the same period in 2021, while revenue increased 41 percent to 6.3 billion euros, or $6.33 billion, and adjusted EBITDA increased 21 percent to 525 million euros, or $527.6 million. CEO Jean-Marc Germain says the company’s record quarterly adjusted EBITDA includes record third-quarter performances by its Aerospace & Transportation (A&T) and Automotive Structures & Industry (AS&I) segments. “Looking across our end markets, packaging demand continues to be resilient. Our shipments were down in the quarter…