Constellium’s shipments, revenue decline in Q3

Paris-based Constellium has reported its third-quarter 2024 financial results, which included shipments of 352,000 metric tons, down 5 percent from the comparable quarter in 2023, and a 5 percent decrease in revenue to 1.6 billion euros, or $1.73 billion.

The company’s net income totaled 3 million euros ($3.24 million) for the recently completed quarter compared with net income of 64 million euros ($69.21 million) for the third quarter of 2023.

Its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled 110 million euros, or $118.95 million, which included negative 17 million euros ($18.4 million) associated with the flood in Valais, Switzerland, and a negative noncash metal price lag impact of 3 million euros ($3.24 million).

For the nine months ended Sept. 30, Constellium's shipments of 1.1 million metric tons were down 4 percent compared with the same period in 2023, while revenue of 5.2 billion euros ($5.62 billion) was down 8 percent.

The company’s net income for the nine-month period was 91 million euros ($98.4 million) compared with 118 million euros ($127.6 million) for the same period last year.

Adjusted EBITDA totaled 461 million euros ($498.5 million) year to date for 2024.

“Our team faced significant challenges in the third quarter, including increased demand weakness across several of our end markets and the ongoing impact from the flood that occurred back in late June at our facilities in the Valais region in Switzerland,” Jean-Marc Germain, Constellium CEO, says. “I am pleased to report that the cleanup and restoration is well underway, and earlier this week we were able to partially restart some of our operations. I am proud of our entire team on the ground in the Valais region and wanted to thank them for their incredible resolve and courage during this very difficult time.” 

While Germain describes packaging demand as healthy for the quarter, he says, “Aerospace demand has started to slow down as commercial aerospace OEMs [original equipment manufacturers] are dealing with supply chain challenges and continue to struggle to increase build rates. Automotive demand during the quarter started to soften in North America, while weakness accelerated during the quarter in automotive markets in Europe. We experienced a sharp decline in demand in North America in most industrial markets and further weakness in most industrial and specialties markets in Europe.”

Germain adds, "We continue to face uncertainties on the macroeconomic and geopolitical fronts, and we have a demand environment that has continued to weaken throughout the year, which accelerated during the third quarter and has now spread to most of our end markets.”

He says, according to Constellium’s current outlook, adjusted EBITDA for the year is expected to be in the range of 580 million euros to 600 million euros ($627.2 million to $648.8 million), excluding an estimated one-time impact of 30 million euros to 40 million euros ($32.4 million to $43.3 million) from the flood in Switzerland and the noncash impact of metal price lag. “Given the softness we are experiencing today across most of our end markets with no signs of recovery in the near term, we are also more cautious as we head into 2025,” Germain continues. “At this stage, our adjusted EBITDA target of over 800 million euros ($865.1 million), excluding the noncash impact of metal price lag, is delayed pending market recovery. Overall, we like our end market positioning and remain confident in the long-term fundamentals driving the demand for our products. Our focus remains on executing our strategy and increasing shareholder value.”