Higher aluminium prices and shipments boost Constellium’s nine months 2018 revenues

Aluminium products manufacturer Constellium published results for the third quarter and nine months of 2018.

For the third quarter of 2018, the company reported total shipments of 379 thousand tonnes, up 1% YoY on higher shipments in Automotive Structures and Industry and Packaging and Automotive Rolled Products segments. Revenue stood at €1.4 billion, up 12% YoY due primarily to higher aluminium prices and improved price and mix.  Net income stood at €217 million compared to net income of €21 million in Q3 2017 and adjusted EBITDA stood at €114 million, up 2% YoY.

For the first nine months of 2018, total shipments increased 3% YoY to 1.2 million tonnes. Revenue stood at €4.3 billion, up 8% YoY. Net income stood at €248 million compared to net income of €49 million in the first nine months of 2017 due primarily to the completion of the Sierre transaction in the third quarter of 2018. Adjusted EBITDA stood at €382 million, up 15% YoY.

Jean-Marc Germain, Constellium’s Chief Executive Officer said, “Constellium delivered solid results in the third quarter. Our improvement compared to last year was driven by continued operational performance, steady end market demand and Project 2019 cost savings, which were partially offset by higher planned maintenance and other costs. We continue to expect Adjusted EBITDA growth of 11% to 13% in 2018.”

In Packaging & Automotive Rolled Products (P&ARP) segment

Constellium reported total shipments of 260 thousand tonnes In Q3 2018. Revenue increased 11% YoY to €783 million due to higher aluminium prices and improved price and mix. For the first nine months of 2018,

Adjusted EBITDA increased 18% YoY to €186 million. Shipments rose 2% YoY to 785 thousand tonnes. Revenue of €2.3 billion increased 8% compared to the first nine months of last year due primarily to higher aluminium prices and higher shipments.

In Aerospace & Transportation (A&T) segment

Adjusted EBITDA in Q3 decreased due to improved price and mix offset by higher costs, partially related to manufacturing challenges in the production of TID products. Shipments remained unchanged at 58 thousand tonnes. Revenue increased 11% to €341 million.

For the first nine months of 2018, Adjusted EBITDA stood at €106 million. Shipments increased to 187 thousand tonnes and revenue increased to €1.0 billion, up 2%.

In Automotive Structures & Industry (AS&I) segment

Adjusted EBITDA in Q3 increased due to higher shipments of both Automotive and Other extruded products. For the third quarter of 2018, shipments increased 6% YoY to 61 thousand tonnes and Revenue increased 17% YoY to €322 million.

For the first nine months of 2018, Adjusted EBITDA increased 13YoY to €104 million. Shipments increased to 192 thousand tonnes and Revenue increased to €966 million.