Constellium SE (NYSE: CSTM) today reported results for the third
quarter ended September 30, 2022.
Third quarter 2022 highlights:
- Shipments of 387 thousand metric
tons, down 2% compared to Q3 2021
- Revenue of €2.0 billion, up 27%
compared to Q3 2021
- Value-Added Revenue (VAR) of €673
million, up 21% compared to Q3 2021
- Net income of €131 million compared
to net income of €99 million in Q3 2021
- Adjusted EBITDA of €160 million, up
12% compared to Q3 2021
- Cash from Operations of €154 million
and Free Cash Flow of €74 million
Nine months ended September 30, 2022
highlights:
- Shipments of 1.2 million metric
tons, up 2% compared to YTD 2021
- Revenue of €6.3 billion, up 41%
compared to YTD 2021
- VAR of €2.0 billion, up 21% compared
to YTD 2021
- Net income of €278 million compared
to net income of €255 million in YTD 2021
- Adjusted EBITDA of €525 million, up
21% compared to YTD 2021
- Cash from Operations of €323 million
and Free Cash Flow of €160 million
- Net debt / LTM Adjusted EBITDA of
3.0x at September 30, 2022
Jean-Marc Germain, Constellium’s Chief Executive
Officer said, “Constellium delivered strong results in the third
quarter. Adjusted EBITDA of €160 million is a third quarter record
and includes record third quarter performances by both A&T and
AS&I. Looking across our end markets, packaging demand
continues to be resilient. Our shipments were down in the quarter
due to operating challenges at our Muscle Shoals facility.
Automotive shipments were up double digits in the quarter versus
last year with new platform launches driving our growth, but we
continue to be impacted by the semiconductor shortage and other
supply chain challenges. In aerospace, demand is very strong with
shipments up around 50% compared to last year for the second
quarter in a row. While we are seeing signs of weakness across
certain industrial markets, we like our end market positioning.
Free Cash Flow in the third quarter was solid at €74 million.”
"Macroeconomic and geopolitical risks remain
elevated and we expect significant inflationary pressures to
continue, particularly for inputs like energy and in regions more
directly affected by the ongoing war in Ukraine. The Constellium
team has demonstrated its relentless focus on execution and cost
control and I am confident in our ability to manage our business
through these challenging times. We remain focused on executing our
strategy, driving operational improvements, strengthening our
margins, generating Free Cash Flow and increasing shareholder
value,” Mr. Germain continued.
Mr. Germain concluded, “We expect recent demand
trends in our markets to continue through the remainder of 2022.
Based on our current outlook, in 2022 we expect Adjusted EBITDA at
the low end of our range of €670 million to €690 million and Free
Cash Flow in excess of €170 million.”
• Group Summary
|
Q32022 |
Q32021 |
Var. |
YTD2022 |
YTD2021 |
Var. |
Shipments (k metric tons) |
387 |
395 |
(2)% |
1,212 |
1,186 |
2% |
Revenue (€ millions) |
2,022 |
1,587 |
27% |
6,276 |
4,446 |
41% |
VAR (€ millions) |
673 |
558 |
21% |
2,029 |
1,670 |
21% |
Net income (€ millions) |
131 |
99 |
n.m. |
278 |
255 |
n.m. |
Adjusted EBITDA (€ millions) |
160 |
143 |
12% |
525 |
434 |
21% |
Adjusted EBITDA per metric ton (€) |
412 |
362 |
14% |
433 |
366 |
18% |
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.
For the third quarter of 2022, shipments of 387
thousand metric tons decreased 2% compared to the third quarter of
last year due to lower shipments in the Packaging & Automotive
Rolled Products segment, partially offset by higher shipments in
the Aerospace & Transportation and Automotive Structures &
Industry segments. Revenue of €2.0 billion increased 27% compared
to the third quarter of the prior year primarily due to improved
price and mix and higher metal prices. VAR of €673 million
increased 21% compared to the third quarter of the prior year
primarily due to improved price and mix and favorable foreign
exchange translation, partially offset by lower volumes and
unfavorable metal costs due to inflation. Net income of €131
million increased €32 million compared to net income of €99 million
in the third quarter of 2021. Adjusted EBITDA of €160 million
increased 12% compared to the third quarter of last year due to
stronger results in our Aerospace & Transportation, Automotive
Structures & Industry and Holdings & Corporate segments,
partially offset by weaker results in our Packaging &
Automotive Rolled Products segment.
For the first nine months of 2022, shipments of
1.2 million metric tons increased 2% compared to the first nine
months of 2021 on higher shipments in each of our segments. Revenue
of €6.3 billion increased 41% compared to the first nine months of
2021 primarily due to higher metal prices, improved price and mix
and higher volumes. VAR of €2.0 billion increased 21% compared to
the first nine months of 2021 primarily due to higher volumes,
improved price and mix and favorable foreign exchange translation,
partially offset by unfavorable metal costs due to inflation. Net
income of €278 million increased €23 million compared to net income
of €255 million in the first nine months of 2021. Adjusted EBITDA
of €525 million increased 21% compared to the first nine months of
2021 on stronger results in our Aerospace & Transportation,
Automotive Structures & Industry and Holdings & Corporate
segments.
• Results by Segment
• Packaging & Automotive Rolled Products
(P&ARP)
|
Q32022 |
Q32021 |
Var. |
YTD2022 |
YTD2021 |
Var. |
Shipments (k metric tons) |
267 |
281 |
(5)% |
835 |
832 |
0% |
Revenue (€ millions) |
1,140 |
988 |
15% |
3,656 |
2,661 |
37% |
Adjusted EBITDA (€ millions) |
78 |
94 |
(17)% |
255 |
256 |
(1)% |
Adjusted EBITDA per metric ton (€) |
291 |
335 |
(13)% |
305 |
308 |
(1)% |
For the third quarter of 2022, Adjusted EBITDA
decreased 17% compared to the third quarter of 2021 as a result of
lower shipments and higher operating costs mainly due to inflation
and operating challenges at our Muscle Shoals facility which
resulted in higher maintenance and supplies costs, partially offset
by improved price and mix and favorable foreign exchange
translation. Shipments of 267 thousand metric tons decreased 5%
compared to the third quarter of the prior year due to lower
shipments of packaging and specialty rolled products, partially
offset by higher shipments of automotive rolled products. Revenue
of €1.1 billion increased 15% compared to the third quarter of 2021
primarily due to improved price and mix and higher metal prices,
partially offset by lower shipments.
For the first nine months of 2022, Adjusted
EBITDA of €255 million was relatively stable compared to the first
nine months of 2021 with improved price and mix, favorable metal
costs and favorable foreign exchange translation offset by higher
operating costs mainly due to inflation and operating challenges at
our Muscle Shoals facility which resulted in higher maintenance and
supplies costs. Shipments of 835 thousand metric tons were stable
compared to the first nine months of 2021 on higher shipments of
automotive rolled products, mostly offset by lower shipments of
specialty rolled products. Revenue of €3.7 billion increased 37%
compared to the first nine months of 2021 primarily due to higher
metal prices.
• Aerospace & Transportation
(A&T)
|
Q32022 |
Q32021 |
Var. |
YTD2022 |
YTD2021 |
Var. |
Shipments (k metric tons) |
55 |
52 |
6% |
170 |
153 |
11% |
Revenue (€ millions) |
432 |
289 |
50% |
1,278 |
821 |
56% |
Adjusted EBITDA (€ millions) |
45 |
20 |
136% |
161 |
81 |
99% |
Adjusted EBITDA per metric ton (€) |
807 |
362 |
123% |
944 |
525 |
80% |
For the third quarter of 2022, Adjusted EBITDA
increased 136% compared to the third quarter of 2021 primarily due
to higher shipments, improved price and mix and favorable foreign
exchange translation, partially offset by higher operating costs
due to inflation and the production ramp-up in aerospace. Shipments
of 55 thousand metric tons increased 6% compared to the third
quarter of 2021 on higher shipments of aerospace rolled products,
partially offset by lower shipments of TID rolled products. Revenue
of €432 million increased 50% compared to the third quarter of 2021
on improved price and mix, higher metal prices, higher shipments
and favorable foreign exchange translation.
For the first nine months of 2022, Adjusted
EBITDA of €161 million increased 99% compared to the first nine
months of 2021 primarily due to higher shipments, improved price
and mix and favorable foreign exchange translation, partially
offset by higher operating costs due to inflation and the
production ramp-up in aerospace. Shipments of 170 thousand metric
tons increased 11% compared to the first nine months of 2021 on
higher shipments of aerospace rolled products. Revenue of €1.3
billion increased 56% compared to the first nine months of 2021
primarily due to higher metal prices, improved price and mix and
higher shipments.
• Automotive Structures & Industry
(AS&I)
|
Q32022 |
Q32021 |
Var. |
YTD2022 |
YTD2021 |
Var. |
Shipments (k metric tons) |
65 |
62 |
4% |
207 |
201 |
3% |
Revenue (€ millions) |
473 |
326 |
45% |
1,433 |
1,021 |
40% |
Adjusted EBITDA (€ millions) |
35 |
32 |
7% |
118 |
111 |
6% |
Adjusted EBITDA per metric ton (€) |
544 |
528 |
3% |
570 |
553 |
3% |
For the third quarter of 2022, Adjusted EBITDA
increased 7% compared to the third quarter of 2021 primarily due to
higher shipments and improved price and mix, partially offset by
higher operating costs mainly due to inflation. Shipments of 65
thousand metric tons increased 4% compared to the third quarter of
2021 due to higher shipments of automotive extruded products.
Revenue of €473 million increased 45% compared to the third quarter
of 2021 primarily due to improved price and mix and higher metal
prices.For the first nine months of 2022, Adjusted EBITDA of €118
million increased 6% compared to the first nine months of 2021
primarily due to higher shipments and improved price and mix,
partially offset by higher operating costs mainly due to inflation.
Shipments of 207 thousand metric tons increased 3% compared to the
first nine months of 2021 on higher shipments of other extruded
products. Revenue of €1.4 billion increased 40% compared to the
first nine months of 2021 primarily due to higher metal prices and
improved price and mix.
• Net Income
For the third quarter of 2022, net income of
€131 million compares to net income of €99 million in the third
quarter of the prior year. The increase in net income is primarily
related to the recognition of deferred tax assets previously
unrecognized, partially offset by realized losses on derivatives
mostly related to our metal hedging positions and lower gross
profit.For the first nine months of 2022, net income of €278
million compares to net income of €255 million in first nine months
of the prior year. The increase in net income is primarily related
to the recognition of deferred tax assets previously unrecognized,
higher gross profit and lower finance costs, partially offset by
realized and unrealized losses on derivatives mostly related to our
metal hedging positions and higher selling and administrative
expenses.
• Cash Flow
Free Cash Flow was €160 million in the first
nine months of 2022 compared to €121 million in the first nine
months of the prior year. The increase was primarily due to
stronger Adjusted EBITDA and lower cash interest, partially offset
by increased capital expenditures and higher cash taxes.Cash flows
from operating activities were €323 million for the first nine
months of 2022 compared to cash flows from operating activities of
€239 million in the first nine months of the prior year.
Constellium increased derecognized factored receivables by €22
million for the first nine months of 2022 compared to a decrease of
€30 million in the prior year.Cash flows used in investing
activities were €163 million for the first nine months of 2022
compared to cash flows used in investing activities of €118 million
in the first nine months of the prior year.
Cash flows used in financing activities were
€141 million for the first nine months of 2022 compared to cash
flows used in financing activities of €241 million in the first
nine months of the prior year. In the first nine months of 2022,
Constellium drew on the Pan-U.S. ABL due 2026 and used the proceeds
and cash on the balance sheet to repay the €180 million PGE French
Facility due 2022 and the CHF 15 million Swiss Facility due 2025.
In the first nine months of 2021, Constellium issued $500 million
of 3.75% Sustainability-Linked Senior Notes due 2029 and €300
million of 3.125% Sustainability-Linked Senior Notes due 2029 and
used the proceeds and cash on the balance sheet to redeem $650
million of 6.625% Senior Notes due 2025 and $400 million of 5.75%
Senior Notes due 2024.
• Liquidity and Net Debt
Liquidity at September 30, 2022 was €819
million, comprised of €171 million of cash and cash equivalents and
€648 million available under our committed lending facilities and
factoring arrangements.Net debt was €1,997 million at September 30,
2022 compared to €1,981 million at December 31, 2021.
• Outlook
Based on our current outlook, we expect Adjusted
EBITDA in the range of €670 million to €690 million in 2022.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, metal 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.
• 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, including the
length and magnitude of disruption resulting from the global
COVID-19 pandemic; the Russian invasion of Ukraine; 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 €6.2 billion of
revenue in 2021.Constellium’s earnings materials for the third
quarter ended September 30, 2022, are also available on the
company’s website (www.constellium.com).
|
|
Jason
Hershiser - Investor Relations |
Delphine Dahan-Kocher - External
Communications |
Phone: +1 443 988 0600 |
Phone: +1 443 420 7860 |
Investor-relations@constellium.com |
delphine.dahan-kocher@constellium.com |
|
|
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
|
Three months ended September
30, |
Nine months ended September
30, |
(in
millions of Euros) |
2022 |
2021 |
2022 |
2021 |
Revenue |
2,022 |
|
1,587 |
|
6,276 |
|
4,446 |
|
Cost of
sales |
(1,889 |
) |
(1,419 |
) |
(5,711 |
) |
(3,937 |
) |
Gross profit |
133 |
|
168 |
|
565 |
|
509 |
|
Selling and administrative expenses |
(63 |
) |
(60 |
) |
(206 |
) |
(187 |
) |
Research and development
expenses |
(11 |
) |
(10 |
) |
(32 |
) |
(30 |
) |
Other
gains and losses - net |
(29 |
) |
55 |
|
(53 |
) |
142 |
|
Income from operations |
30 |
|
153 |
|
274 |
|
434 |
|
Finance costs - net |
(36 |
) |
(34 |
) |
(98 |
) |
(126 |
) |
(Loss) / income before tax |
(6 |
) |
119 |
|
176 |
|
308 |
|
Income tax benefit / (expense) |
137 |
|
(20 |
) |
102 |
|
(53 |
) |
Net income |
131 |
|
99 |
|
278 |
|
255 |
|
Net income attributable to: |
|
|
|
|
Equity holders of
Constellium |
130 |
|
97 |
|
273 |
|
250 |
|
Non-controlling interests |
1 |
|
2 |
|
5 |
|
5 |
|
Net income |
131 |
|
99 |
|
278 |
|
255 |
|
|
|
|
|
|
Earnings per share attributable to the equity holders of
Constellium, (in Euros) |
|
|
|
|
Basic |
0.90 |
|
0.68 |
|
1.90 |
|
1.77 |
|
Diluted |
0.88 |
|
0.65 |
|
1.86 |
|
1.69 |
|
Weighted average number of
shares, (in thousands) |
|
|
|
|
Basic |
144,302 |
|
141,677 |
|
143,398 |
|
140,765 |
|
Diluted |
146,759 |
|
147,148 |
|
146,759 |
|
147,148 |
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME / (LOSS) (UNAUDITED)
|
Three months endedSeptember
30, |
Nine months endedSeptember
30, |
(in
millions of Euros) |
2022 |
2021 |
2022 |
2021 |
Net income |
131 |
|
99 |
|
278 |
|
255 |
|
Other comprehensive income |
|
|
|
|
Items
that will not be reclassified subsequently to the consolidated
income statement |
|
|
|
|
Remeasurement on post-employment benefit obligations |
26 |
|
5 |
|
181 |
|
94 |
|
Income tax on remeasurement on
post-employment benefit obligations |
(9 |
) |
(3 |
) |
(39 |
) |
(14 |
) |
Items
that may be reclassified subsequently to the consolidated
income statement |
|
|
|
|
Cash flow hedges |
(12 |
) |
(6 |
) |
(27 |
) |
(14 |
) |
Income tax on cash flow
hedges |
3 |
|
1 |
|
7 |
|
3 |
|
Currency translation differences |
47 |
|
10 |
|
89 |
|
22 |
|
Other comprehensive income |
55 |
|
7 |
|
211 |
|
91 |
|
Total comprehensive income |
186 |
|
106 |
|
489 |
|
346 |
|
Attributable to: |
|
|
|
|
Equity holders of
Constellium |
184 |
|
104 |
|
483 |
|
340 |
|
Non-controlling interests |
2 |
|
2 |
|
6 |
|
6 |
|
Total comprehensive income |
186 |
|
106 |
|
489 |
|
346 |
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION (UNAUDITED)
|
|
|
|
|
(in millions of
Euros) |
|
At September 30, 2022 |
|
At December 31, 2021 |
Assets |
|
|
|
|
Current assets |
Cash and cash equivalents |
|
171 |
|
147 |
Trade receivables and other |
|
822 |
|
683 |
Inventories |
|
1,383 |
|
1,050 |
Other financial assets |
|
47 |
|
58 |
|
|
2,423 |
|
1,938 |
Non-current assets |
|
|
|
|
Property, plant and equipment |
|
2,057 |
|
1
,948 |
Goodwill |
|
522 |
|
451 |
Intangible assets |
|
57 |
|
58 |
Deferred tax assets |
|
275 |
|
162 |
Trade receivables and other |
|
53 |
|
55 |
Other financial assets |
|
18 |
|
12 |
|
|
2,982 |
|
2,686 |
Total
Assets |
|
5,405 |
|
4,624 |
|
|
|
|
|
Liabilities |
Current liabilities |
Trade
payables and other |
|
1,690 |
|
1,377 |
Borrowings |
|
154 |
|
258 |
Other
financial liabilities |
|
87 |
|
25 |
Income tax
payable |
|
24 |
|
34 |
Provisions |
|
22 |
|
20 |
|
|
1,977 |
|
1,714 |
Non-current liabilities |
|
|
|
|
Trade
payables and other |
|
40 |
|
32 |
Borrowings |
|
2,015 |
|
1,871.60 |
Other
financial liabilities |
|
28 |
|
599.97 |
Pension and
other post-employment benefit obligations |
|
450 |
|
14 |
Provisions |
|
97 |
|
_ |
Deferred tax liabilities |
|
5 |
|
_ |
|
|
2,635 |
|
2,619 |
Total
Liabilities |
|
4,612 |
|
4,333 |
Equity |
|
|
|
|
Share capital |
|
3 |
|
3 |
Share premium |
|
420 |
|
420 |
Retained earnings /
(deficit) and other reserves |
|
347 |
|
(149) |
Equity attributable to equity holders of
Constellium |
|
770 |
|
274 |
Non-controlling interests |
|
23 |
|
17 |
Total Equity |
|
793 |
|
291 |
Total Equity and Liabilities |
|
5,405 |
|
4,624 |
|
|
|
|
|
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(UNAUDITED)
(in millions of Euros) |
|
Share capital |
|
Share premium |
|
Re-measurement |
|
|
Cashflowhedges |
|
Foreigncurrencytranslationreserve |
|
Other reserves |
|
Retained(deficit) earnings |
|
Total |
|
Non-controllinginterests |
|
Totalequity |
At January 1, 2022 |
|
3 |
|
420 |
|
(94 |
) |
|
(4 |
) |
|
19 |
|
|
83 |
|
(153 |
) |
|
274 |
|
|
17 |
|
|
291 |
|
Net
income |
|
_ |
|
_ |
|
_ |
|
|
_ |
|
|
_ |
|
|
_ |
|
273 |
|
|
273 |
|
|
5 |
|
|
278 |
|
Other
comprehensive income / (loss) |
|
_ |
|
_ |
|
142 |
|
|
(20 |
) |
|
88 |
|
|
_ |
|
_ |
|
|
210 |
|
|
1 |
|
|
211 |
|
Total comprehensive income | (loss) |
|
_ |
|
_ |
|
142 |
|
|
(20 |
) |
|
88 |
|
|
_ |
|
273 |
|
|
483 |
|
|
6 |
|
|
489 |
|
Share-based
compensation |
|
_ |
|
_ |
|
_ |
|
|
_ |
|
|
_ |
|
|
13 |
|
_ |
|
|
13 |
|
|
_ |
|
|
13 |
|
Transactions with non-controlling interests |
|
_ |
|
_ |
|
_ |
|
|
_ |
|
|
_ |
|
|
|
|
_ |
|
|
_ |
|
|
_ |
|
|
_ |
|
At September 30, 2022 |
|
3 |
|
420 |
|
48 |
|
|
(24 |
) |
|
107 |
|
|
96 |
|
120 |
|
|
770 |
|
|
23 |
|
|
793 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of Euros) |
|
Sharecapital |
|
Share premium |
|
Re-measurement |
|
Cashflowhedges |
|
Foreign currency translation reserve |
|
Other reserves |
|
Retaineddeficit |
|
Total |
|
Non-controlling interests |
|
Totalequity |
At
January 1, 2021 |
|
3 |
|
420 |
|
(192 |
) |
|
9 |
|
|
(13 |
) |
|
68 |
|
(410 |
) |
|
(115 |
) |
|
14 |
|
|
(101 |
) |
Net
income |
|
_ |
|
_ |
|
_ |
|
|
_ |
|
|
_ |
|
|
_ |
|
250 |
|
|
250 |
|
|
5 |
|
|
255 |
|
Other
comprehensive income / (loss) |
|
_ |
|
_ |
|
80 |
|
|
(11 |
) |
|
21 |
|
|
_ |
|
_ |
|
|
90 |
|
|
1 |
|
|
91 |
|
Total comprehensive income | (loss) |
|
_ |
|
_ |
|
80 |
|
|
(11 |
) |
|
21 |
|
|
_ |
|
250 |
|
|
340 |
|
|
6 |
|
|
346 |
|
Share-based
compensation |
|
_ |
|
_ |
|
_ |
|
|
_ |
|
|
_ |
|
|
11 |
|
_ |
|
|
11 |
|
|
_ |
|
|
11 |
|
Transactions
with non-controlling interests |
|
_ |
|
_ |
|
_ |
|
|
_ |
|
|
_ |
|
|
_ |
|
_ |
|
|
_ |
|
|
(2 |
) |
|
(2 |
) |
At September 30, 2021 |
|
3 |
|
420 |
|
(112 |
) |
|
(2 |
) |
|
8 |
|
|
79 |
|
(160 |
) |
|
236 |
|
|
18 |
|
|
254 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
|
Three months ended September
30, |
Nine months ended September
30, |
(in millions of Euros) |
2022 |
2021 |
2022 |
2021 |
Net income |
131 |
|
99 |
|
278 |
|
255 |
|
Adjustments |
|
|
|
|
Depreciation and amortization |
73 |
|
67 |
|
209 |
|
195 |
|
Pension and other post-employment benefits service costs |
7 |
|
8 |
|
18 |
|
25 |
|
Finance costs - net |
36 |
|
34 |
|
98 |
|
126 |
|
Income tax (benefit) / expense |
(137 |
) |
20 |
|
(102 |
) |
53 |
|
Unrealized (gains) / losses on derivatives - net and from
remeasurement of monetary assets and liabilities - net |
(18 |
) |
(23 |
) |
67 |
|
(68 |
) |
Losses on disposal |
1 |
|
1 |
|
2 |
|
1 |
|
Other - net |
4 |
|
3 |
|
12 |
|
8 |
|
Change in working capital |
|
|
|
|
Inventories |
18 |
|
(122 |
) |
(238 |
) |
(334 |
) |
Trade receivables |
195 |
|
(23 |
) |
(92 |
) |
(257 |
) |
Trade payables |
(119 |
) |
56 |
|
206 |
|
356 |
|
Other |
(1 |
) |
15 |
|
3 |
|
15 |
|
Change in provisions |
(3 |
) |
(3 |
) |
(7 |
) |
(7 |
) |
Pension and other
post-employment benefits paid |
(12 |
) |
(13 |
) |
(33 |
) |
(34 |
) |
Interest paid |
(31 |
) |
(27 |
) |
(85 |
) |
(99 |
) |
Income
tax refunded / (paid) |
10 |
|
(1 |
) |
(13 |
) |
4 |
|
Net cash flows from operating activities |
154 |
|
91 |
|
323 |
|
239 |
|
Purchases of property, plant and equipment |
(80 |
) |
(54 |
) |
(164 |
) |
(128 |
) |
Property, plant and equipment grants received |
— |
|
3 |
|
1 |
|
10 |
|
Net cash flows used in investing activities |
(80 |
) |
(51 |
) |
(163 |
) |
(118 |
) |
Proceeds from issuance of long-term borrowings |
— |
|
— |
|
— |
|
712 |
|
Repayments of long-term
borrowings |
(2 |
) |
(2 |
) |
(188 |
) |
(871 |
) |
Net change in revolving credit
facilities and short-term borrowings |
(57 |
) |
1 |
|
67 |
|
— |
|
Lease repayments |
(7 |
) |
(8 |
) |
(27 |
) |
(25 |
) |
Payment of financing costs and
redemption fees |
(1 |
) |
(2 |
) |
(1 |
) |
(28 |
) |
Transactions with
non-controlling interests |
— |
|
— |
|
(2 |
) |
(2 |
) |
Other
financing activities |
5 |
|
2 |
|
10 |
|
(27 |
) |
Net cash flows used in financing activities |
(62 |
) |
(9 |
) |
(141 |
) |
(241 |
) |
Net increase / (decrease) in cash and cash
equivalent |
12 |
|
31 |
|
19 |
|
(120 |
) |
Cash and cash equivalents -
beginning of year |
156 |
|
290 |
|
147 |
|
439 |
|
Effect of exchange rate changes on cash and cash equivalents |
3 |
|
2 |
|
5 |
|
4 |
|
Cash and cash equivalents - end of period |
171 |
|
323 |
|
171 |
|
323 |
|
|
|
|
|
|
|
|
|
|
SEGMENT ADJUSTED EBITDA
|
Three months endedSeptember 30, |
Nine months ended September
30, |
(in millions of Euros) |
2022 |
2021 |
2022 |
2021 |
P&ARP |
78 |
94 |
|
255 |
|
256 |
|
A&T |
45 |
20 |
|
161 |
|
81 |
|
AS&I |
35 |
32 |
|
118 |
|
111 |
|
Holdings and Corporate |
2 |
(3 |
) |
(9 |
) |
(14 |
) |
Total |
160 |
143 |
|
525 |
|
434 |
|
|
|
|
|
|
|
|
|
SHIPMENTS AND REVENUE BY PRODUCT LINE
(in k metric tons) |
Three months ended September
30, |
Nine months ended September
30, |
2022 |
2021 |
2022 |
2021 |
Packaging rolled products |
196 |
|
215 |
|
623 |
|
622 |
|
Automotive rolled
products |
64 |
|
55 |
|
184 |
|
177 |
|
Specialty and other
thin-rolled products |
7 |
|
11 |
|
28 |
|
33 |
|
Aerospace rolled products |
19 |
|
13 |
|
55 |
|
39 |
|
Transportation, industry, defense
and other rolled products |
36 |
|
39 |
|
115 |
|
114 |
|
Automotive extruded
products |
29 |
|
26 |
|
89 |
|
89 |
|
Other
extruded products |
36 |
|
36 |
|
118 |
|
112 |
|
Total shipments |
387 |
|
395 |
|
1,212 |
|
1,186 |
|
(in millions of Euros) |
|
|
|
|
Packaging rolled products |
792 |
|
730 |
|
2,629 |
|
1,897 |
|
Automotive rolled
products |
308 |
|
216 |
|
879 |
|
637 |
|
Specialty and other
thin-rolled products |
40 |
|
42 |
|
148 |
|
127 |
|
Aerospace rolled products |
184 |
|
92 |
|
510 |
|
279 |
|
Transportation, industry, defense
and other rolled products |
248 |
|
197 |
|
768 |
|
542 |
|
Automotive extruded
products |
248 |
|
167 |
|
721 |
|
544 |
|
Other extruded products |
225 |
|
159 |
|
712 |
|
477 |
|
Other
and inter-segment eliminations |
(23 |
) |
(16 |
) |
(91 |
) |
(57 |
) |
Total revenue |
2,022 |
|
1,587 |
|
6,276 |
|
4,446 |
|
|
|
|
|
|
|
|
|
|
NON-GAAP MEASURES
Reconciliation of Revenue to VAR (a non-GAAP
measure)
|
Three months endedSeptember
30, |
Nine months endedSeptember
30, |
(in millions of Euros) |
2022 |
2021 |
2022 |
2021 |
Revenue |
2,022 |
|
1,587 |
|
6,276 |
|
4,446 |
|
Hedged cost of alloyed
metal |
(1,414 |
) |
(966 |
) |
(4,191 |
) |
(2,617 |
) |
Revenue from incidental
activities |
(5 |
) |
(4 |
) |
(16 |
) |
(15 |
) |
Metal
time lag |
70 |
|
(59 |
) |
(40 |
) |
(144 |
) |
VAR |
673 |
|
558 |
|
2,029 |
|
1,670 |
|
|
|
|
|
|
|
|
|
|
Reconciliation of net income to Adjusted EBITDA (a
non-GAAP measure)
|
Three months endedSeptember
30, |
Nine months endedSeptember
30, |
(in millions of Euros) |
2022 |
2021 |
2022 |
2021 |
Net income |
131 |
|
99 |
|
278 |
|
255 |
|
Income
tax (benefit) / expense |
(137 |
) |
20 |
|
(102 |
) |
53 |
|
(Loss) / income before tax |
(3 |
) |
119 |
|
176 |
|
308 |
|
Finance
costs - net |
36 |
|
34 |
|
98 |
|
126 |
|
Income from operations |
30 |
|
153 |
|
274 |
|
434 |
|
Depreciation and
amortization |
73 |
|
67 |
|
209 |
|
195 |
|
Restructuring costs |
— |
|
— |
|
— |
|
3 |
|
Unrealized (gains) / losses on
derivatives |
(19 |
) |
(23 |
) |
65 |
|
(67 |
) |
Unrealized exchange losses /
(gains) from the remeasurement of monetary assets and liabilities –
net |
1 |
|
— |
|
2 |
|
(1 |
) |
Losses on pension plan
amendments |
— |
|
— |
|
— |
|
2 |
|
Share based compensation
costs |
4 |
|
4 |
|
13 |
|
11 |
|
Metal price lag (A) |
70 |
|
(59 |
) |
(40 |
) |
(144 |
) |
Losses
on disposal |
1 |
|
1 |
|
2 |
|
1 |
|
Adjusted EBITDA |
160 |
|
143 |
|
525 |
|
434 |
|
|
|
|
|
|
|
|
|
|
(A) 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 Group
accounts for inventory using a weighted average price basis and
this adjustment aims to remove the effect of volatility in LME
prices. The calculation of the Group metal price lag adjustment is
based on an internal standardized methodology calculated at each of
Constellium’s manufacturing sites and is primarily calculated as
the average value of product recorded in inventory, which
approximates the spot price in the market, less the average value
transferred out of inventory, which is the weighted average of the
metal element of cost of sales, based on the quantity sold in the
year.
Reconciliation of net cash flows from operating
activities to Free Cash Flow (a non-GAAP measure)
|
|
|
|
|
|
(in millions of Euros) |
|
Three months endedSeptember 30 |
|
Nine months endedSeptember 30 |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net cash flows from operating activities |
|
154 |
|
|
91 |
|
|
323 |
|
|
239 |
|
Purchases of
property, plant and equipment |
|
(80 |
) |
|
(54 |
) |
|
(164 |
) |
|
(128 |
) |
Property, plant and equipment grants received |
|
_ |
|
|
3 |
|
|
1 |
|
|
10 |
|
Free Cash Flow |
|
74 |
|
|
40 |
|
|
160 |
|
|
121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of borrowings to Net debt (a non-GAAP
measure)
(in millions of Euros) |
|
At September 30, 2022 |
|
At December 31,2021 |
|
|
|
|
Borrowings |
|
2,169 |
|
|
2,129 |
|
Fair value
of net debt derivatives, net of margin calls |
|
(1 |
) |
|
(1 |
) |
Cash and cash equivalents |
|
(171 |
) |
|
(147 |
) |
Net debt |
|
1,997 |
|
|
1,981 |
|
|
|
|
|
|
|
|
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: VAR, Adjusted EBITDA, Adjusted EBITDA per metric ton,
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.VAR is defined as revenue, excluding revenue from
incidental activities, minus cost of metal which includes, cost of
aluminium adjusted for metal lag, cost of other alloying metals,
freight out costs, and realized gains and losses from hedging.
Management believes that VAR is a useful measure of our activity as
it eliminates the impact of metal costs from our revenue and
reflects the value-added elements of our activity. VAR eliminates
the impact of metal price fluctuations which are not under our
control and which we generally pass-through to our customers and
facilitates comparisons from period to period. VAR is not a
presentation made in accordance with IFRS and should not be
considered as an alternative to revenue determined in accordance
with IFRS.In considering the financial performance of the business,
management and our chief operational decision maker, as defined by
IFRS, analyze the primary financial performance measure of Adjusted
EBITDA in all of our business segments. 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
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, metal price
lag, 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 nonrecurring
items.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
and, specifically in relation to the exclusion of the effect of
favorable or unfavorable metal price lag, this measure allows
management and the investor to assess operating results and trends
without the impact of our accounting for inventories. We use the
weighted average cost method in accordance with IFRS which leads to
the purchase price paid for metal impacting our cost of goods sold
and therefore profitability in the period subsequent to when the
related sales price impacts our revenues. 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, equity contributions and loans
to joint ventures and other investing activities. 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.
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