Constellium reports lower Q3 profit, revenue amid demand weakness

PARIS - Constellium SE (NYSE:CSTM ) reported lower third-quarter profit and revenue as the aluminum products maker faced weakening demand across several end markets and impacts from flooding at its Swiss facilities. The company's shares rose 0.94% following the results.

The Paris-based company posted net income of €3 million ($3.2 million) for the quarter, down sharply from €64 million in the same period last year. Adjusted earnings per share came in at €0.02, missing analyst estimates of €0.42.

Revenue fell 5% year-over-year to €1.6 billion, below the consensus forecast of €1.85 billion. Shipments declined 5% to 352,000 metric tons.

"Our team faced significant challenges in the third quarter, including increased demand weakness across several of our end markets, and the ongoing impact from the flood that occurred back in late June at our facilities in the Valais region in Switzerland," said CEO Jean-Marc Germain.

The company saw softening demand in automotive markets in North America and Europe, as well as sharp declines in most industrial markets in North America and further weakness in industrial and specialty markets in Europe. Aerospace demand also started to slow as commercial aerospace manufacturers dealt with supply chain issues.

Adjusted EBITDA fell to €110 million from €141 million last year, including a €17 million negative impact from the flooding in Switzerland.

For full-year 2024, Constellium expects adjusted EBITDA of €580-600 million, excluding an estimated €30-40 million one-time impact from the Swiss flooding and metal price lag effects.

The company said it is "more cautious" heading into 2025 given the current softness across most end markets, with no signs of near-term recovery. It has delayed its previous adjusted EBITDA target of over €800 million pending market improvement.

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Source: Investing.com