Constellium Reports Second Quarter 2020 Results
Paris, July 22, 2020 – Constellium SE (NYSE: CSTM) today reported results for the second quarter ended June 30, 2020.
For the second quarter of 2020:
- Shipments of 310 thousand metric tons, down 25% compared to Q2 2019
- Revenue of €1.0 billion, down 33% compared to Q2 2019
- Net loss of €32 million compared to net income of €17 million in Q2 2019
- Adjusted EBITDA of €81 million, down 51% compared to Q2 2019
- Cash from Operations of €8 million and Free Cash Flow of €(33) million
For the first half of 2020:
- Shipments of 703 thousand metric tons, down 15% compared to H1 2019
- Revenue of €2.5 billion, down 20% compared to H1 2019
- Net loss of €63 million compared to net income of €41 million in H1 2019
- Adjusted EBITDA of €228 million, down 24% compared to H1 2019
- Cash from Operations of €152 million and Free Cash Flow of €54 million
- Net debt / LTM Adjusted EBITDA of 4.4x as of June 30, 2020
Jean-Marc Germain, Constellium’s Chief Executive Officer said, “The COVID-19 pandemic has challenged our employees and our business. Protecting the health and safety of our employees and their families remains our top priority. Despite difficult market conditions, our business delivered solid operating results in the quarter, particularly Muscle Shoals in meeting strong packaging demand. We generated Free Cash Flow of €54 million in the first half of 2020. We also strengthened our financial profile by increasing our liquidity to €949 million. I am very proud of the way our team responded swiftly to the crisis by reducing our costs and cash expenditures and demonstrated the flexibility and resilience of our business model.
Mr. Germain continued, "There remains significant uncertainty around the extent and duration of the effects of the pandemic. With the significant actions we have taken and the diversity of our markets and customers, I am very confident in our ability to navigate through this crisis. Based on our current view of market conditions, we expect to generate positive Free Cash Flow in 2020."
Download the press release
Forward Looking Statement
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 inability to meet customer demand and quality requirements; the loss of key customers, suppliers or other business relationships; 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.