Constellium's automotive shipments show improvement, but the fragile aluminium packaging segment impacts results

The global leader in the development and manufacturing of high-value-added aluminium products, solutions, and aluminium recycling, Constellium's packaging and automotive rolled products (P&ARP) segment in Q2 2023 that concluded on June 30 experienced a 7 per cent decline in y-o-y shipments, amounting to 272,000 tonnes. This decrease was primarily attributed to lower packaging and speciality rolled product shipments. However, the impact was partway compensated by increased shipments of automotive rolled products.

According to the company's statement, the segment recorded €1 billion in revenue, reflecting a 22 per cent downfall compared to the previous year. The decrease can be primarily attributed to reduced shipments and lower metal prices. However, this was partially mitigated by better prices and product mix during the period.

In Q2 2023, the P&ARP segment experienced a 17 per cent decline in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) compared to the previous year. This downturn was attributed to reduced shipments and increased operating costs, which the company associated with inflationary pressures, operational difficulties at its Muscle Shoals facility in Alabama, USA, and adverse metal expenses.

However, during the initial half of 2023, the segment reported a decrease in its financial performance, with adjusted EBITDA dropping by 24 per cent to €134 million, shipments falling by 7 per cent to 531,000 tonnes, and revenue declining by 17 per cent to €2.1 billion, all when compared to the previous year. These negative results were attributed to the same influencing factors mentioned in the prior period.