Aluminium smelter Constellium SE reported results for the second quarter and first half of 2023 this week. Lower metal prices took their toll on the bottom line, but improvements in the A&T segment buoyed results.
In the second quarter, Constellium shipped 398 thousand metric tons of product, off by 6 percent on the year. Revenue fell by 14 percent to €2.0 billion, while value-added revenue (VAR) rose by 11 percent to €785 million. Net income came to €32 million, mirroring a €32 million loss last year. Adjusted EBITDA rose 5 percent on the year to €209 million.
For the year’s first half, Constellium saw shipments fall by 5 percent to 787 thousand metric tons. Revenue dropped by 8 percent to €3.9 billion, while VAR rose 13 percent to €1.5 billion. Net income fell to €54 million, while adjusted EBITDA rose by 2 percent to €374 million.
Jean-Marc Germain, Constellium’s Chief Executive Officer, said in a press release that he was pleased at his firm’s overall results.
“I am very pleased with the results our team delivered in the second quarter, including record VAR and record Adjusted EBITDA. Demand remained strong across several end markets during the quarter, and our team continued to execute very well despite significant inflationary pressures. A&T reported record quarterly Adjusted EBITDA supported by continued strength in aerospace demand. The recovery in automotive continued with higher shipments in both rolled and extruded products. Packaging shipments were down in the quarter as demand remained below prior year levels, and we continued to experience weakness in most industrial markets, especially in Europe. Free Cash Flow generation in the second quarter was strong at €68 million and we reduced our leverage to 2.7x.”
Constellium, based in France, was founded 1855 as Henri Merle et Compagnie and subsequently renamed Pechiney in 1950. Pechiney was purchased by Alcan in 2003, which was purchased by Rio Tinto in 2007. In 2011 Rio Tinto sold Alcan Engineered Products to Apollo Management (51%) and FSI (10%). Constellium produces rolled and extruded aluminium products from various alloys, bringing in €8.1 billion of revenue in 2022.
