Constellium NV, a European value-added aluminium company, launched its fourth-quarter and full-year 2021 results this week. Despite the persisting market challenges brought on by the global COVID-19 epidemic, Constellium's financial result for both the quarters were good.
Shipments of 385 thousand metric tonnes increased by 3% in the fourth quarter of 2021 compared to the fourth quarter of 2020 owing to greater shipments in the Aerospace & Transportation category. Revenue of €1.7 billion was up 37% over the fourth quarter of the previous year, owing mostly to higher metal prices. Net income of €7 million was down €19 million from the fourth quarter of 2020, when it was €26 million. Due to stronger performance in each of the sectors, adjusted EBITDA of €147 million grew by 33% compared to the fourth quarter of 2020.
Shipments of 1.6 million metric tonnes grew 10% year over year in 2021 compared to the same period in 2020, owing to greater shipments in each of their businesses. Greater metal prices and higher shipments, somewhat offset by a worse mix, resulted in revenue of €6.2 billion, up 26% from the full year of 2020. In the entire year of 2020, net income was €262 million, compared to a net loss of €17 million. In comparison to the full year of 2020, adjusted EBITDA of €581 million grew by 25% due to stronger performance in each of the businesses.
“Constellium delivered a strong finish to 2021, and I want to thank each of our 12,000 employees for their commitment and relentless focus on safety and serving our customers. 2021 was another year of challenges and uncertainties brought by the COVID-19 crisis, including inflationary pressures across the business, weakness in aerospace demand, semiconductor shortages in automotive and other supply chain issues. Despite these challenges, we achieved record Adjusted EBITDA of €581 million, including record results in both P&ARP and AS&I. We generated solid Free Cash Flow of €135 million and reduced our leverage to 3.4x,” said Jean-Marc Germain, Constellium’s Chief Executive Officer.
“Looking ahead to 2022, we expect demand to remain strong in our packaging and industrial markets. We are starting to see the beginnings of a recovery in aerospace demand and expect year over year growth in shipments in the coming quarters. In automotive, we expect demand to remain low to start the year as the semiconductor shortage persists and to improve in the second half of the year. We are expecting inflationary pressures to continue at an elevated level throughout 2022, though we are confident in our ability to offset most of the impact with improved pricing and our relentless focus on cost control,” added Mr. Germain.
According to the results, adjusted EBITDA climbed 7% in Q4 2021 compared to the fourth quarter of 2020, owing to favourable metal costs, which were largely offset by higher operating expenses and an unfavourable mix. Higher sales of packaging and specialised rolled goods were offset by reduced shipments of automotive rolled products, resulting in a consistent shipping total of 272 thousand metric tonnes compared to the fourth quarter of the previous year. Higher metal prices drove a 39% increase in revenue to €1.0 billion in the fourth quarter of 2020.
Adjusted EBITDA of €344 million for the full year of 2021 climbed 18% over the full year of 2020 owing to stronger shipments, good cost management and metal costs. However, they were slightly offset by a worse mix and not so acceptable foreign exchange translation. Compared to the entire year of 2020, shipments of packaging, automotive, and specialised rolled goods climbed by 8% to 1.1 million metric tonnes. Larger metal prices and higher shipments drove a 35% gain in revenue to €3.7 billion for the entire year of 2020.
Net income of €7 million in the fourth quarter of 2021 compares to €26 million in the fourth quarter of the previous year. Higher selling and administrative expenses, an unfavourable change in gains and losses on derivatives related to the metal hedging positions, a loss on pension plan amendments due to an adverse judicial outcome, and higher finance costs and tax expense all contributed to the decrease in net income, which was partially offset by higher gross profit in 2021 and impairments recorded in 2020.
Net profits of €262 million for the entire year of 2021 compares to a net loss of €17 million the previous year. Higher gross profit, a postitive change in gains and losses on derivatives related to the metal hedging positions, and impairments recorded in 2020 contributed to the increase in net income, which was partially offset by higher selling and administrative expenses, a loss on pension plan amendments due to an unfavourable judicial outcome, and higher tax expense.
source https://www.alcircle.com/news/constellium-publishes-q4-and-full-year-2021-result-revenue-grows-37-y-o-y-to-1-7-billion-76714
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