Constellium Reports Second Quarter and First Half 2024 Results
Constellium SE (NYSE: CSTM) reported Q2 2024 results with shipments down 5% to 378k metric tons and revenue down 8% to €1.8 billion compared to Q2 2023. Net income increased to €71 million from €32 million in Q2 2023. Adjusted EBITDA rose to €214 million, including a €42 million non-cash metal price lag impact.
For H1 2024, shipments decreased 4% to 758k metric tons, revenue fell 10% to €3.5 billion, and net income increased to €88 million from €54 million in H1 2023. The company faced challenges including weaker market conditions and severe flooding in Switzerland, leading to a pause in 2024 guidance. Despite near-term challenges, Constellium remains confident in achieving its 2025 Adjusted EBITDA target of over €800 million, excluding metal price lag impact.
Constellium SE (NYSE: CSTM) ha riportato i risultati del secondo trimestre del 2024 con spedizioni in calo del 5% a 378k tonnellate metriche e un fatturato in calo dell'8% a €1,8 miliardi rispetto al secondo trimestre del 2023. Il reddito netto è aumentato a €71 milioni rispetto ai €32 milioni del secondo trimestre del 2023. L'EBITDA rettificato è salito a €214 milioni, inclusi €42 milioni di impatto non monetario legato al ritardo nei prezzi dei metalli.
Per il primo semestre del 2024, le spedizioni sono diminuite del 4% a 758k tonnellate metriche, il fatturato è sceso del 10% a €3,5 miliardi e il reddito netto è aumentato a €88 milioni rispetto ai €54 milioni del primo semestre del 2023. L'azienda ha affrontato sfide, inclusi condizioni di mercato più deboli e gravi inondazioni in Svizzera, che hanno portato a una pausa nelle previsioni per il 2024. Nonostante le sfide a breve termine, Constellium rimane fiduciosa di raggiungere il suo obiettivo di EBITDA rettificato per il 2025 di oltre €800 milioni, escludendo l'impatto del ritardo nei prezzi dei metalli.
Constellium SE (NYSE: CSTM) reportó resultados del segundo trimestre de 2024 con envíos a la baja del 5% a 378 mil toneladas métricas y ingresos a la baja del 8% a €1.8 mil millones en comparación con el segundo trimestre de 2023. El ingreso neto aumentó a €71 millones desde €32 millones en el segundo trimestre de 2023. El EBITDA ajustado subió a €214 millones, incluyendo un impacto de retraso en precios de metales no monetario de €42 millones.
Para el primer semestre de 2024, los envíos disminuyeron un 4% a 758 mil toneladas métricas, los ingresos cayeron un 10% a €3.5 mil millones, y el ingreso neto aumentó a €88 millones desde €54 millones en el primer semestre de 2023. La compañía enfrentó desafíos, incluidas condiciones del mercado más débiles y severas inundaciones en Suiza, lo que llevó a una pausa en las estimaciones para 2024. A pesar de los desafíos a corto plazo, Constellium sigue confiando en alcanzar su objetivo de EBITDA ajustado para 2025 de más de €800 millones, excluyendo el impacto del retraso en precios de metales.
Constellium SE (NYSE: CSTM)는 2024년 2분기 결과를 발표했으며, 출하량이 5% 감소하여 378,000 미터 톤에 달하고, 수익이 8% 감소하여 18억 유로에 달했습니다. 이는 2023년 2분기 대비한 수치입니다. 순이익은 3200만 유로에서 7100만 유로로 증가했습니다. 조정된 EBITDA는 2억 1400만 유로로 증가했으며, 여기에는 4200만 유로의 비현금 금속 가격 지연 영향이 포함됩니다.
2024년 상반기에 대해, 출하량이 4% 감소하여 758,000 미터 톤에 달하고, 수익이 10% 감소하여 35억 유로에 달하며, 순이익은 5400만 유로에서 8800만 유로로 증가했습니다. 회사는 더 약한 시장 상황과 스위스의 심각한 홍수를 포함한 도전에 직면했으며, 이로 인해 2024년 가이드라인에 일시 중단이 발생했습니다. 단기적인 도전에도 불구하고, Constellium은 금속 가격 지연 영향을 제외하고 2025년 조정된 EBITDA 목표인 8억 유로를 초과 달성할 수 있을 것이라고 자신하고 있습니다.
Constellium SE (NYSE: CSTM) a annoncé les résultats du deuxième trimestre 2024 avec des expéditions en baisse de 5% à 378 000 tonnes métriques et des revenus en baisse de 8% à 1,8 milliard d'euros par rapport au deuxième trimestre 2023. Le revenu net a augmenté pour atteindre 71 millions d'euros contre 32 millions d'euros au deuxième trimestre 2023. EBITDA ajusté a augmenté à 214 millions d'euros, incluant un impact de retard de prix des métaux de 42 millions d'euros.
Pour le premier semestre 2024, les expéditions ont diminué de 4% pour atteindre 758 000 tonnes métriques, les revenus ont chuté de 10% à 3,5 milliards d'euros, et le revenu net a augmenté à 88 millions d'euros par rapport à 54 millions d'euros au premier semestre 2023. L'entreprise a été confrontée à des défis, notamment des conditions de marché plus faibles et de graves inondations en Suisse, ce qui a entraîné une pause dans les prévisions pour 2024. Malgré les défis à court terme, Constellium reste confiant dans la réalisation de son objectif d'EBITDA ajusté de plus de 800 millions d'euros pour 2025, hors impact de retard des prix des métaux.
Constellium SE (NYSE: CSTM) hat die Ergebnisse für das 2. Quartal 2024 veröffentlicht mit Lieferungen, die um 5% auf 378.000 metrische Tonnen gesenkt wurden und einem Umsatzrückgang von 8% auf 1,8 Milliarden Euro im Vergleich zum 2. Quartal 2023. Der Nettogewinn stieg auf 71 Millionen Euro von 32 Millionen Euro im 2. Quartal 2023. Das bereinigte EBITDA erhöhte sich auf 214 Millionen Euro, einschließlich eines nicht zahlungswirksamen Effekts des Preisverzugs bei Metallen von 42 Millionen Euro.
Für das 1. Halbjahr 2024 gingen die Lieferungen um 4% auf 758.000 metrische Tonnen zurück, der Umsatz fiel um 10% auf 3,5 Milliarden Euro, und der Nettogewinn stieg auf 88 Millionen Euro von 54 Millionen Euro im 1. Halbjahr 2023. Das Unternehmen sah sich Herausforderungen gegenüber, darunter schwächere Marktbedingungen und schwere Überschwemmungen in der Schweiz, was zu einer Pause bei den Prognosen für 2024 führte. Trotz kurzfristiger Herausforderungen bleibt Constellium zuversichtlich, das Ziel für das bereinigte EBITDA von über 800 Millionen Euro für 2025 zu erreichen, ohne den Effekt des Preisverzugs bei Metallen.
- Net income increased to €71 million in Q2 2024 from €32 million in Q2 2023
- Adjusted EBITDA rose to €214 million in Q2 2024
- Free Cash Flow improved to €67 million in H1 2024 from €34 million in H1 2023
- Company repurchased 1.89 million shares for $39.4 million in H1 2024
- Signed long-term agreement with Lotte Infracell for battery foil applications in Europe
- Q2 2024 shipments down 5% to 378k metric tons compared to Q2 2023
- Q2 2024 revenue down 8% to €1.8 billion compared to Q2 2023
- H1 2024 shipments decreased 4% to 758k metric tons compared to H1 2023
- H1 2024 revenue fell 10% to €3.5 billion compared to H1 2023
- Severe flooding in Switzerland caused significant damage, with gross damage assessment of approximately €135 million
- Company paused 2024 guidance due to uncertainties from flooding impact
Insights
Constellium's latest earnings report presents a mixed picture of its financial health. Key metrics such as revenue and adjusted EBITDA show a decline compared to the previous year, with revenue down
The discontinuation of reporting 'Value-Added Revenue' and the revision of 'Adjusted EBITDA' metrics indicate an effort to align more closely with GAAP standards. This move could increase transparency and comparability for investors, although it requires some adjustment in how performance is evaluated. The non-cash impact of metal price lag is a significant factor, contributing
Cash flow figures are also strong, with free cash flow up from
Constellium's performance across different segments reveals varying degrees of market strength and challenges. The Packaging & Automotive Rolled Products (P&ARP) segment shows a notable decline, with Adjusted EBITDA down
The Aerospace & Transportation (A&T) segment is relatively stable, with only a
On a strategic level, the flooding in the Valais region introduces new uncertainties. While the company assures that the impact is manageable, the suspension of 2024 guidance reflects the difficulty in precisely quantifying the flood's impact. The insurance coverage and potential government assistance provide some cushion, yet the situation emphasizes the vulnerability to unexpected events.
The recent developments involving Constellium’s facility in Muscle Shoals, Alabama and its partnership with Lotte Infracell, underline the company's strategic focus on innovation and sustainability. The investment from the U.S. Department of Defense to rebuild the Direct Chill aluminum casting center aims to boost production capacity while enhancing recycling efforts. This initiative aligns well with broader industry trends emphasizing sustainability and self-reliance, particularly in the context of geopolitical uncertainties.
Similarly, the long-term agreement with Lotte Infracell for supplying battery foilstock positions Constellium strategically in the burgeoning electric vehicle market. This partnership is not just a revenue opportunity but also a step towards integrating more advanced and sustainable materials in automotive applications. These moves could be pivotal in differentiating Constellium from competitors and securing long-term growth in high-demand sectors.
However, these strategic developments need to be closely monitored for execution risks and market reception. Any delays or setbacks could impact the projected benefits, especially given the substantial investments involved.
PARIS, July 23, 2024 (GLOBE NEWSWIRE) -- Constellium SE (NYSE: CSTM) ("Constellium" or the "Company") today reported results for the second quarter ended June 30, 2024.
As a reminder of the press release issued on February 21, 2024 and following the SEC comment letter review process, Constellium will no longer report Value-Added Revenue (VAR), a Non-GAAP financial measure. In addition, the Company has revised its definition of consolidated Adjusted EBITDA, a Non-GAAP financial measure, to no longer exclude the non-cash impact of metal price lag from its consolidated Adjusted EBITDA. Constellium will continue to exclude the non-cash impact of metal price lag from its Segment Adjusted EBITDA, which it uses for evaluating the performance of its operating segments. Following the revision of its definition, consolidated Adjusted EBITDA, less the non-cash impact of metal price lag, is equal to consolidated Adjusted EBITDA prior to the revision of its definition. Constellium will continue to provide its investors and other stakeholders with the necessary information to explain the non-cash impact of metal price lag on its reported results.
Second quarter 2024 highlights:
- Shipments of 378 thousand metric tons, down
5% compared to Q2 2023 - Revenue of
€1.8 billion , down8% compared to Q2 2023 - Net income of
€71 million compared to net income of€32 million in Q2 2023 - Adjusted EBITDA of
€214 million
> Includes non-cash metal price lag impact of€42 million - Segment Adjusted EBITDA of
€64 million at P&ARP,€83 million at A&T,€32 million at AS&I, and€(7) million at H&C - Cash from Operations of
€152 million and Free Cash Flow of€75 million - Repurchased 1.56 million shares of the Company stock for
$32.5 million
First half 2024 highlights:
- Shipments of 758 thousand metric tons, down
4% compared to H1 2023 - Revenue of
€3.5 billion , down10% compared to H1 2023 - Net income of
€88 million compared to net income of€54 million in H1 2023 - Adjusted EBITDA of
€351 million
> Includes non-cash metal price lag impact of€29 million - Segment Adjusted EBITDA of
€107 million at P&ARP,€163 million at A&T,€65 million at AS&I, and€(13) million at H&C - Cash from Operations of
€206 million and Free Cash Flow of€67 million - Repurchased 1.89 million shares of the Company stock for
$39.4 million - Leverage of 2.5x at June 30, 2024
Jean-Marc Germain, Constellium’s Chief Executive Officer said, “Our team delivered solid second quarter results despite a mixed end market demand environment and two large planned maintenance outages we took during the quarter. In late June, we experienced a severe flooding event at our facilities in Sierre and Chippis in the Valais region in Switzerland. While I am grateful that all of our employees are safe, this natural disaster will have some impact on our results in the near-term.”
“Looking at our end markets, aerospace demand remained strong and packaging demand continued to improve. Automotive demand remained stable in the quarter in North America though demand in Europe continued to weaken. We continued to experience weakness in most industrial and specialties markets with no signs of recovery in the near-term. Free Cash Flow was strong in the quarter at
Mr. Germain concluded, “We continue to face uncertainties on the macroeconomic and geopolitical fronts. Overall we like our end market positioning but we are more cautious for the second half of this year. Excluding the impact from the flood, our 2024 Adjusted EBITDA guidance, excluding the non-cash impact of metal price lag, would have been reduced by approximately
Group Summary
| Q2 2024 | Q2 2023 | Var. | YTD 2024 | YTD 2023 | Var. | |||||||
| Shipments (k metric tons) | 378 | 398 | (5) | % | 758 | 787 | (4) | % | ||||
| Revenue (€ millions) | 1,795 | 1,950 | (8) | % | 3,526 | 3,906 | (10) | % | ||||
| Net income (€ millions) | 71 | 32 | n.m. | 88 | 54 | n.m. | ||||||
| Adjusted EBITDA (€ millions) | 214 | 179 | n.m. | 351 | 329 | n.m. | ||||||
| Metal price lag (non-cash) (€ millions) | 42 | (30 | ) | n.m. | 29 | (45 | ) | n.m. |
The difference between the sum of reported segment revenue and total group revenue includes revenue from certain non-core activities and inter-segment eliminations. The difference between the sum of reported Segment Adjusted EBITDA and the Group Adjusted EBITDA is related to Holdings and Corporate and the impact of metal price lag.
For the second quarter of 2024, shipments of 378 thousand metric tons decreased
For the first half of 2024, shipments of 758 thousand metric tons decreased
Results by Segment
Packaging & Automotive Rolled Products (P&ARP)
| Q2 2024 | Q2 2023 | Var. | YTD 2024 | YTD 2023 | Var. | |||||||
| Shipments (k metric tons) | 262 | 272 | (4) | % | 526 | 531 | (1) | % | ||||
| Revenue (€ millions) | 1,001 | 1,049 | (5) | % | 1,939 | 2,079 | (7) | % | ||||
| Segment Adjusted EBITDA (€ millions) | 64 | 79 | (19) | % | 107 | 134 | (20) | % | ||||
| Segment Adjusted EBITDA per metric ton (€) | 244 | 291 | (16) | % | 203 | 253 | (20) | % |
For the second quarter of 2024, Segment Adjusted EBITDA of
For the first half of 2024, Segment Adjusted EBITDA of
Aerospace & Transportation (A&T)
| Q2 2024 | Q2 2023 | Var. | YTD 2024 | YTD 2023 | Var. | |||||||
| Shipments (k metric tons) | 60 | 60 | 0 | % | 117 | 118 | (1) | % | ||||
| Revenue (€ millions) | 452 | 464 | (3) | % | 893 | 916 | (3) | % | ||||
| Segment Adjusted EBITDA (€ millions) | 83 | 96 | (14) | % | 163 | 169 | (3) | % | ||||
| Segment Adjusted EBITDA per metric ton (€) | 1,395 | 1,613 | (14) | % | 1,397 | 1,418 | (1) | % |
For the second quarter of 2024, Segment Adjusted EBITDA of
For the first half of 2024, Segment Adjusted EBITDA of
Automotive Structures & Industry (AS&I)
| Q2 2024 | Q2 2023 | Var. | YTD 2024 | YTD 2023 | Var. | |||||||
| Shipments (k metric tons) | 56 | 66 | (15) | % | 115 | 138 | (16) | % | ||||
| Revenue (€ millions) | 357 | 443 | (19) | % | 721 | 926 | (22) | % | ||||
| Segment Adjusted EBITDA (€ millions) | 32 | 39 | (19) | % | 65 | 82 | (21) | % | ||||
| Segment Adjusted EBITDA per metric ton (€) | 573 | 597 | (4) | % | 563 | 598 | (6) | % |
For the second quarter of 2024, Segment Adjusted EBITDA of
For the first half of 2024, Segment Adjusted EBITDA of
The following table reconciles the total of our segments’ measures of profitability to the group’s Income from Operations:
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| (in millions of Euros) | 2024 | 2023 | 2024 | 2023 | ||||||||
| P&ARP | 64 | 79 | 107 | 134 | ||||||||
| A&T | 83 | 96 | 163 | 169 | ||||||||
| AS&I | 32 | 39 | 65 | 82 | ||||||||
| Holdings and Corporate | (7 | ) | (5 | ) | (13 | ) | (11 | ) | ||||
| Segment Adjusted EBITDA | 172 | 209 | 322 | 374 | ||||||||
| Metal price lag | 42 | (30 | ) | 29 | (45 | ) | ||||||
| Adjusted EBITDA | 214 | 179 | 351 | 329 | ||||||||
| Other adjustments | (87 | ) | (100 | ) | (166 | ) | (188 | ) | ||||
| Income from operations | 127 | 79 | 185 | 141 | ||||||||
Reconciling items excluded from our Segment Adjusted EBITDA include the following:
Metal price lag
Metal price lag represents the financial impact of the timing difference between when aluminium prices included within Constellium's Revenue are established and when aluminium purchase prices included in Cost of sales are established. The metal price lag will generally increase our earnings in times of rising primary aluminium prices and decrease our earnings in times of declining primary aluminium prices. The calculation of metal price lag adjustment is based on a standardized methodology applied at each of Constellium’s manufacturing sites. Metal price lag is calculated as the average value of product purchased in the period, approximated at the market price, less the value of product in inventory at the weighted average of metal purchased over time, multiplied by the quantity sold in the period.
For both the second quarter and the first half of 2024, metal price lag is positive which reflects LME prices for aluminium increasing during the period. For both the second quarter and the first half of 2023, metal price lag is negative which reflects LME prices for aluminium decreasing during the period.
Other adjustments are detailed in the Reconciliation of net income to Adjusted EBITDA Table on page 16.
Net Income
For the second quarter of 2024, net income of
For the first half of 2024, net income of
Cash Flow
Free Cash Flow was
Cash flows from operating activities were
Cash flows used in investing activities were
Cash flows used in financing activities were
Liquidity and Net Debt
Liquidity at June 30, 2024 was
Net debt was
Valais Update / Outlook
In late June we experienced unprecedented flooding in the Valais region of Switzerland, devastating the region, including industrial activities at Constellium and elsewhere. Constellium’s plate and extrusion shops in Sierre and casthouse in Chippis were severely flooded and operations have remained suspended since the flood. All Constellium employees have been confirmed safe, but there is significant damage to the equipment and facilities. Cleaning and drying operations, as well as the testing and maintenance phase, are all underway.
To put our Valais operations into perspective, we employ around 700 employees in the region across three locations, out of approximately 12,000 total Constellium employees. The total finishing capacity of Sierre is 70 to 75 thousand metric tons, or less than
We are working closely with our insurance company and the latest insurance estimates have a gross damage assessment of approximately
Excluding the impact from the flood, our 2024 Adjusted EBITDA guidance, excluding the non-cash impact of metal price lag, would have been reduced by approximately
We are not able to provide a reconciliation of this Adjusted EBITDA guidance to net income, the comparable GAAP measure, because certain items that are excluded from Adjusted EBITDA cannot be reasonably predicted or are not in our control. In particular, we are unable to forecast the timing or magnitude of realized and unrealized gains and losses on derivative instruments, non-cash impact of metal price lag, impairment or restructuring charges, or taxes without unreasonable efforts, and these items could significantly impact, either individually or in the aggregate, net income in the future.
Recent Developments
Constellium's facility in Muscle Shoals, Alabama has been selected by the U.S. Department of Defense (DoD) for an investment under Title III, Defense Production Act to rebuild its Direct Chill aluminum casting center. The funding was awarded via the Defense Production Act Investments (DPAI) Program. Constellium will use the funds to install state-of-the-art casting equipment on the site of a dismantled casting center intended to add up to 300 million pounds of annual casting capacity. With this added capacity, the plant expects to increase its recycled input, reduce its use of primary metal, and provide the U.S. industrial base an additional, self-reliant, domestic source of supply for aluminium rolling ingot. The total investment for this project is approximately
Constellium signed a long-term agreement with Lotte Infracell, a subsidiary of Lotte Aluminium, a leading provider of aluminium solutions, to supply foilstock for Lotte's battery foil applications in Europe. This partnership highlights Constellium's commitment to the growing electric vehicle market and highlights its strategic focus on the cutting-edge automotive aluminium solutions. Under this agreement, Constellium will supply high-quality foilstock from its Singen site in Germany. The total investment for this project is approximately
Forward-looking statements
Certain statements contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may contain “forward-looking statements” with respect to our business, results of operations and financial condition, and our expectations or beliefs concerning future events and conditions. You can identify forward-looking statements because they contain words such as, but not limited to, “believes,” “expects,” “may,” “should,” “approximately,” “anticipates,” “estimates,” “intends,” “plans,” “targets,” likely,” “will,” “would,” “could” and similar expressions (or the negative of these terminologies or expressions). All forward-looking statements involve risks and uncertainties. Many risks and uncertainties are inherent in our industry and markets, while others are more specific to our business and operations. These risks and uncertainties include, but are not limited to: market competition; economic downturn; disruption to business operations; natural disasters including severe flooding and other weather-related events; the Russian war on Ukraine and other geopolitical tensions; the inability to meet customer demand and quality requirements; the loss of key customers, suppliers or other business relationships; supply disruptions; excessive inflation; the capacity and effectiveness of our hedging policy activities; the loss of key employees; levels of indebtedness which could limit our operating flexibility and opportunities; and other risk factors set forth under the heading “Risk Factors” in our Annual Report on Form 20-F, and as described from time to time in subsequent reports filed with the U.S. Securities and Exchange Commission. The occurrence of the events described and the achievement of the expected results depend on many events, some or all of which are not predictable or within our control. Consequently, actual results may differ materially from the forward-looking statements contained in this press release. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.
About Constellium
Constellium (NYSE: CSTM) is a global sector leader that develops innovative, value-added aluminium products for a broad scope of markets and applications, including packaging, automotive and aerospace. Constellium generated
Constellium’s earnings materials for the second quarter ended June 30, 2024 are also available on the company’s website (www.constellium.com).
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| (in millions of Euros) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Revenue | 1,795 | 1,950 | 3,526 | 3,906 | ||||||||
| Cost of sales | (1,605 | ) | (1,737 | ) | (3,175 | ) | (3,532 | ) | ||||
| Gross profit | 190 | 213 | 351 | 374 | ||||||||
| Selling and administrative expenses | (74 | ) | (80 | ) | (149 | ) | (151 | ) | ||||
| Research and development expenses | (13 | ) | (13 | ) | (28 | ) | (26 | ) | ||||
| Other gains and losses - net | 24 | (41 | ) | 11 | (56 | ) | ||||||
| Income from operations | 127 | 79 | 185 | 141 | ||||||||
| Finance costs - net | (32 | ) | (35 | ) | (65 | ) | (70 | ) | ||||
| Income before tax | 95 | 44 | 120 | 71 | ||||||||
| Income tax expense | (24 | ) | (12 | ) | (32 | ) | (17 | ) | ||||
| Net income | 71 | 32 | 88 | 54 | ||||||||
| Net income attributable to: | ||||||||||||
| Equity holders of Constellium | 71 | 31 | 87 | 51 | ||||||||
| Non-controlling interests | — | 1 | 1 | 3 | ||||||||
| Net income | 71 | 32 | 88 | 54 | ||||||||
| Earnings per share attributable to the equity holders of Constellium, (in Euros) | ||||||||||||
| Basic | 0.48 | 0.21 | 0.59 | 0.35 | ||||||||
| Diluted | 0.48 | 0.21 | 0.58 | 0.34 | ||||||||
| Weighted average number of shares, (in thousands) | ||||||||||||
| Basic | 146,272 | 146,543 | 146,534 | 145,429 | ||||||||
| Diluted | 149,040 | 148,191 | 149,670 | 148,191 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME / (LOSS) (UNAUDITED)
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| (in millions of Euros) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Net income | 71 | 32 | 88 | 54 | ||||||||
| Other comprehensive income / (loss) | ||||||||||||
| Items that will not be reclassified subsequently to the consolidated income statement | ||||||||||||
| Remeasurement on post-employment benefit obligations | 11 | 5 | 34 | 4 | ||||||||
| Income tax on remeasurement on post-employment benefit obligations | (3 | ) | (3 | ) | (6 | ) | (2 | ) | ||||
| Items that may be reclassified subsequently to the consolidated income statement | ||||||||||||
| Cash flow hedges | (2 | ) | 1 | (4 | ) | 4 | ||||||
| Income tax on cash flow hedges | 1 | — | 1 | (1 | ) | |||||||
| Currency translation differences | 9 | — | 22 | (13 | ) | |||||||
| Other comprehensive income / (loss) | 16 | 3 | 47 | (8 | ) | |||||||
| Total comprehensive income | 87 | 35 | 135 | 46 | ||||||||
| Attributable to: | ||||||||||||
| Equity holders of Constellium | 87 | 34 | 134 | 44 | ||||||||
| Non-controlling interests | — | 1 | 1 | 2 | ||||||||
| Total comprehensive income | 87 | 35 | 135 | 46 | ||||||||
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
| (in millions of Euros) | At June 30, 2024 | At December 31, 2023 | ||
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | 213 | 202 | ||
| Trade receivables and other | 693 | 490 | ||
| Inventories | 1,134 | 1,098 | ||
| Other financial assets | 22 | 30 | ||
| 2,062 | 1,820 | |||
| Non-current assets | ||||
| Property, plant and equipment | 2,084 | 2,047 | ||
| Goodwill | 477 | 462 | ||
| Intangible assets | 45 | 47 | ||
| Deferred tax assets | 234 | 252 | ||
| Trade receivables and other | 35 | 31 | ||
| Other financial assets | 2 | 2 | ||
| 2,877 | 2,841 | |||
| Total Assets | 4,939 | 4,661 | ||
| Liabilities | ||||
| Current liabilities | ||||
| Trade payables and other | 1,431 | 1,263 | ||
| Borrowings | 53 | 54 | ||
| Other financial liabilities | 30 | 34 | ||
| Income tax payable | 19 | 19 | ||
| Provisions | 19 | 18 | ||
| 1,552 | 1,388 | |||
| Non-current liabilities | ||||
| Trade payables and other | 68 | 59 | ||
| Borrowings | 1,842 | 1,814 | ||
| Other financial liabilities | 11 | 8 | ||
| Pension and other post-employment benefit obligations | 380 | 411 | ||
| Provisions | 86 | 89 | ||
| Deferred tax liabilities | 27 | 28 | ||
| 2,414 | 2,409 | |||
| Total Liabilities | 3,966 | 3,797 | ||
| Equity | ||||
| Share capital | 3 | 3 | ||
| Share premium | 420 | 420 | ||
| Retained earnings and other reserves | 529 | 420 | ||
| Equity attributable to equity holders of Constellium | 952 | 843 | ||
| Non-controlling interests | 21 | 21 | ||
| Total Equity | 973 | 864 | ||
| Total Equity and Liabilities | 4,939 | 4,661 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
| (in millions of Euros) | Share capital | Share premium | Treasury shares | Re- measurement | Cash flow hedges | Foreign currency translation reserve | Other reserves | Retained earnings | Total | Non-controlling interests | Total equity | ||||||||||||||||||
| At January 1, 2024 | 3 | 420 | — | 13 | (4 | ) | 16 | 121 | 274 | 843 | 21 | 864 | |||||||||||||||||
| Net income | — | — | — | — | — | — | — | 87 | 87 | 1 | 88 | ||||||||||||||||||
| Other comprehensive income / (loss) | — | — | — | 28 | (3 | ) | 22 | — | — | 47 | — | 47 | |||||||||||||||||
| Total comprehensive income / (loss) | — | — | — | 28 | (3 | ) | 22 | — | 87 | 134 | 1 | 135 | |||||||||||||||||
| Share-based compensation | — | — | — | — | — | — | 12 | — | 12 | — | 12 | ||||||||||||||||||
| Repurchase of ordinary shares | — | — | (37 | ) | — | — | — | — | — | (37 | ) | — | (37 | ) | |||||||||||||||
| Allocation of treasury shares to share-based compensation plan vested | — | — | 27 | — | — | — | (27 | ) | — | — | — | — | |||||||||||||||||
| Transactions with non-controlling interests | — | — | — | — | — | — | — | — | — | (1 | ) | (1 | ) | ||||||||||||||||
| At June 30, 2024 | 3 | 420 | (10 | ) | 41 | (7 | ) | 38 | 106 | 361 | 952 | 21 | 973 | ||||||||||||||||
| (in millions of Euros) | Share capital | Share premium | Treasury shares | Re- measurement | Cash flow hedges | Foreign currency translation reserve | Other reserves | Retained earnings | Total | Non-controlling interests | Total equity | ||||||||||||||||||
| At January 1, 2023 | 3 | 420 | — | 28 | (10 | ) | 41 | 101 | 148 | 731 | 21 | 752 | |||||||||||||||||
| Net income | — | — | — | — | — | — | — | 51 | 51 | 3 | 54 | ||||||||||||||||||
| Other comprehensive income / (loss) | — | — | — | 2 | 3 | (12 | ) | — | — | (7 | ) | (1 | ) | (8 | ) | ||||||||||||||
| Total comprehensive income / (loss) | — | — | — | 2 | 3 | (12 | ) | — | 51 | 44 | 2 | 46 | |||||||||||||||||
| Share-based compensation | — | — | — | — | — | — | 10 | — | 10 | — | 10 | ||||||||||||||||||
| Transactions with non-controlling interests | — | — | — | — | — | — | — | — | — | (2 | ) | (2 | ) | ||||||||||||||||
| At June 30, 2023 | 3 | 420 | — | 30 | (7 | ) | 29 | 111 | 199 | 785 | 21 | 806 | |||||||||||||||||
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| (in millions of Euros) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Net income | 71 | 32 | 88 | 54 | ||||||||
| Adjustments | ||||||||||||
| Depreciation and amortization | 74 | 72 | 145 | 144 | ||||||||
| Pension and other post-employment benefits service costs | 4 | 5 | 10 | 11 | ||||||||
| Finance costs - net | 32 | 35 | 65 | 70 | ||||||||
| Income tax expense | 24 | 12 | 32 | 17 | ||||||||
| Unrealized (gains) / losses on derivatives - net and from remeasurement of monetary assets and liabilities - net | (4 | ) | 20 | (2 | ) | 28 | ||||||
| Losses on disposal | — | — | 1 | 6 | ||||||||
| Other - net | 6 | 7 | 12 | 10 | ||||||||
| Change in working capital | ||||||||||||
| Inventories | (40 | ) | 72 | (23 | ) | 150 | ||||||
| Trade receivables | (42 | ) | (7 | ) | (186 | ) | (224 | ) | ||||
| Trade payables | 61 | (98 | ) | 153 | (14 | ) | ||||||
| Other | 19 | 23 | 10 | 6 | ||||||||
| Change in provisions | — | (1 | ) | (2 | ) | (2 | ) | |||||
| Pension and other post-employment benefits paid | (11 | ) | (9 | ) | (20 | ) | (19 | ) | ||||
| Interest paid | (26 | ) | (29 | ) | (56 | ) | (63 | ) | ||||
| Income tax paid | (16 | ) | (1 | ) | (21 | ) | (7 | ) | ||||
| Net cash flows from operating activities | 152 | 133 | 206 | 167 | ||||||||
| Purchases of property, plant and equipment | (78 | ) | (65 | ) | (146 | ) | (134 | ) | ||||
| Property, plant and equipment grants received | 1 | — | 7 | 1 | ||||||||
| Net cash flows used in investing activities | (77 | ) | (65 | ) | (139 | ) | (133 | ) | ||||
| Repurchase of ordinary shares | (31 | ) | — | (37 | ) | — | ||||||
| Repayments of long-term borrowings | (2 | ) | (2 | ) | (4 | ) | (5 | ) | ||||
| Net change in revolving credit facilities and short-term borrowings | (1 | ) | (66 | ) | — | 7 | ||||||
| Lease repayments | (7 | ) | (9 | ) | (13 | ) | (16 | ) | ||||
| Transactions with non-controlling interests | (1 | ) | (3 | ) | (3 | ) | (3 | ) | ||||
| Other financing activities | — | — | 1 | (2 | ) | |||||||
| Net cash flows used in financing activities | (42 | ) | (80 | ) | (56 | ) | (19 | ) | ||||
| Net increase / (decrease) in cash and cash equivalent | 33 | (12 | ) | 11 | 15 | |||||||
| Cash and cash equivalents - beginning of period | 180 | 193 | 202 | 166 | ||||||||
| Transfer of cash and cash equivalents from assets classified as held for sale | — | (2 | ) | — | (1 | ) | ||||||
| Effect of exchange rate changes on cash and cash equivalents | — | (1 | ) | — | (2 | ) | ||||||
| Cash and cash equivalents - end of period | 213 | 178 | 213 | 178 | ||||||||
SEGMENT ADJUSTED EBITDA
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| (in millions of Euros) | 2024 | 2023 | 2024 | 2023 | ||||||||
| P&ARP | 64 | 79 | 107 | 134 | ||||||||
| A&T | 83 | 96 | 163 | 169 | ||||||||
| AS&I | 32 | 39 | 65 | 82 | ||||||||
| Holdings and Corporate | (7 | ) | (5 | ) | (13 | ) | (11 | ) | ||||
SHIPMENTS AND REVENUE BY PRODUCT LINE
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| (in k metric tons) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Packaging rolled products | 187 | 194 | 374 | 377 | ||||||||
| Automotive rolled products | 69 | 71 | 140 | 141 | ||||||||
| Specialty and other thin-rolled products | 6 | 7 | 12 | 13 | ||||||||
| Aerospace rolled products | 25 | 26 | 52 | 51 | ||||||||
| Transportation, industry, defense and other rolled products | 35 | 34 | 65 | 67 | ||||||||
| Automotive extruded products | 33 | 38 | 69 | 78 | ||||||||
| Other extruded products | 22 | 28 | 45 | 60 | ||||||||
| Total shipments | 378 | 398 | 758 | 787 | ||||||||
| (in millions of Euros) | ||||||||||||
| Packaging rolled products | 677 | 699 | 1,295 | 1,384 | ||||||||
| Automotive rolled products | 296 | 312 | 583 | 616 | ||||||||
| Specialty and other thin-rolled products | 29 | 38 | 62 | 79 | ||||||||
| Aerospace rolled products | 244 | 271 | 507 | 524 | ||||||||
| Transportation, industry, defense and other rolled products | 208 | 192 | 386 | 391 | ||||||||
| Automotive extruded products | 233 | 280 | 475 | 573 | ||||||||
| Other extruded products | 123 | 163 | 246 | 353 | ||||||||
| Other and inter-segment eliminations | (16 | ) | (5 | ) | (28 | ) | (14 | ) | ||||
| Total revenue | 1,795 | 1,950 | 3,526 | 3,906 | ||||||||
Amounts may not sum due to rounding.
Certain reclassifications have been made to prior year amounts to conform to the current year presentation.
NON-GAAP MEASURES
Reconciliation of net income to Adjusted EBITDA (a non-GAAP measure)
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| (in millions of Euros) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Net income | 71 | 32 | 88 | 54 | ||||||||
| Income tax expense | 24 | 12 | 32 | 17 | ||||||||
| Income before tax | 95 | 44 | 120 | 71 | ||||||||
| Finance costs - net | 32 | 35 | 65 | 70 | ||||||||
| Income from operations | 127 | 79 | 185 | 141 | ||||||||
| Depreciation and amortization | 74 | 72 | 145 | 144 | ||||||||
| Restructuring costs (A) | 3 | — | 3 | — | ||||||||
| Unrealized (gains) / losses on derivatives | (3 | ) | 20 | — | 28 | |||||||
| Unrealized exchange losses / (gains) from the remeasurement of monetary assets and liabilities – net | — | 1 | (2 | ) | — | |||||||
| Share based compensation costs | 6 | 7 | 12 | 10 | ||||||||
| Losses on disposal (B) | — | — | 1 | 6 | ||||||||
| Other (C) | 7 | — | 7 | — | ||||||||
| Adjusted EBITDA (D) | 214 | 179 | 351 | 329 | ||||||||
| of which Metal price lag (E) | 42 | (30 | ) | 29 | (45 | ) | ||||||
| (A) For the three and six months ended June 30, 2024, restructuring costs amounted to | ||||||||||||
| (B) For the six months ended June 30, 2023, gains and losses on disposal costs net of transaction costs included a | ||||||||||||
| (C) For the three and six months ended June 30, 2024, other was related to | ||||||||||||
| (D) Adjusted EBITDA includes the non-cash impact of metal price lag as presented on the line below. | ||||||||||||
| (E) Metal price lag represents the financial impact of the timing difference between when aluminium prices included within Constellium's Revenue are established and when aluminium purchase prices included in Cost of sales are established. The metal price lag will generally increase our earnings in times of rising primary aluminium prices and decrease our earnings in times of declining primary aluminium prices. The calculation of metal price lag adjustment is based on a standardized methodology applied at each of Constellium’s manufacturing sites. Metal price lag is calculated as the average value of product purchased in the period, approximated at the market price, less the value of product in inventory at the weighted average of metal purchased over time, multiplied by the quantity sold in the period. | ||||||||||||
Reconciliation of net cash flows from operating activities to Free Cash Flow (a non-GAAP measure)
| Three months ended June 30, | Six months ended June 30, | |||||||||||
| (in millions of Euros) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Net cash flows from operating activities | 152 | 133 | 206 | 167 | ||||||||
| Purchases of property, plant and equipment, net of grants received | (77 | ) | (65 | ) | (139 | ) | (133 | ) | ||||
| Free Cash Flow | 75 | 68 | 67 | 34 | ||||||||
Reconciliation of borrowings to Net debt (a non-GAAP measure)
| (in millions of Euros) | At June 30, 2024 | At December 31, 2023 | ||||
| Borrowings | 1,895 | 1,868 | ||||
| Fair value of net debt derivatives, net of margin calls | — | (2 | ) | |||
| Cash and cash equivalents | (213 | ) | (202 | ) | ||
| Net debt | 1,682 | 1,664 | ||||
Non-GAAP measures
In addition to the results reported in accordance with International Financial Reporting Standards (“IFRS”), this press release includes information regarding certain financial measures which are not prepared in accordance with IFRS (“non-GAAP measures”). The non-GAAP measures used in this press release are: Adjusted EBITDA, Free Cash Flow and Net debt. Reconciliations to the most directly comparable IFRS financial measures are presented in the schedules to this press release. We believe these non-GAAP measures are important supplemental measures of our operating and financial performance. By providing these measures, together with the reconciliations, we believe we are enhancing investors’ understanding of our business, our results of operations and our financial position, as well as assisting investors in evaluating the extent to which we are executing our strategic initiatives. However, these non-GAAP financial measures supplement our IFRS disclosures and should not be considered an alternative to the IFRS measures and may not be comparable to similarly titled measures of other companies.
Adjusted EBITDA is defined as income / (loss) from continuing operations before income taxes, results from joint ventures, net finance costs, other expenses and depreciation and amortization as adjusted to exclude restructuring costs, impairment charges, unrealized gains or losses on derivatives and on foreign exchange differences on transactions which do not qualify for hedge accounting, share based compensation expense, effects of certain purchase accounting adjustments, start-up and development costs or acquisition, integration and separation costs, certain incremental costs and other exceptional, unusual or generally non-recurring items.
The most directly comparable IFRS measure to Adjusted EBITDA is our net income or loss for the period. We believe Adjusted EBITDA, as defined below, is useful to investors and is used by our management for measuring profitability because it excludes the impact of certain non-cash charges, such as depreciation, amortization, impairment and unrealized gains and losses on derivatives as well as items that do not impact the day-to-day operations and that management in many cases does not directly control or influence. Therefore, such adjustments eliminate items which have less bearing on our core operating performance.
Adjusted EBITDA measures are frequently used by securities analysts, investors and other interested parties in their evaluation of Constellium and in comparison to other companies, many of which present an Adjusted EBITDA-related performance measure when reporting their results.
Adjusted EBITDA is the measure of performance used by management in evaluating our operating performance, in preparing internal forecasts and budgets necessary for managing our business. Management believes this measure also provides additional information used by our lending facilities providers with respect to the ongoing performance of our underlying business activities. Historically, we have used Adjusted EBITDA in calculating our compliance with financial covenants under certain of our loan facilities.
Adjusted EBITDA is not a presentation made in accordance with IFRS, is not a measure of financial condition, liquidity or profitability and should not be considered as an alternative to profit or loss for the period, revenues or operating cash flows determined in accordance with IFRS.
Free Cash Flow is defined as net cash flow from operating activities less capital expenditure, net of grants received. Management believes that Free Cash Flow is a useful measure of the net cash flow generated or used by the business as it takes into account both the cash generated or consumed by operating activities, including working capital, and the capital expenditure requirements of the business. However, Free Cash Flow is not a presentation made in accordance with IFRS and should not be considered as an alternative to operating cash flows determined in accordance with IFRS. Free Cash Flow has certain inherent limitations, including the fact that it does not represent residual cash flows available for discretionary spending, notably because it does not reflect principal repayments required in connection with our debt or capital lease obligations.
Net debt is defined as borrowings plus or minus the fair value of cross currency basis swaps net of margin calls less cash and cash equivalents and cash pledged for the issuance of guarantees. Management believes that Net debt is a useful measure of indebtedness because it takes into account the cash and cash equivalent balances held by the Company as well as the total external debt of the Company. Net debt is not a presentation made in accordance with IFRS, and should not be considered as an alternative to borrowings determined in accordance with IFRS. Leverage is defined as Net debt divided by last twelve months Segment Adjusted EBITDA, which excludes the non-cash impact of metal price lag.
| Media Contacts | ||
| Investor Relations | Communications | |
| Jason Hershiser | Delphine Dahan-Kocher | |
| Phone: +1 443 988-0600 | Phone: +1 443 420 7860 | |
| investor-relations@constellium.com | delphine.dahan-kocher@constellium.com | |
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