Constellium plunges 15% as Q3 shipments declined

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Constellium (NYSE:CSTM) -15.1% in Wednesday's trading after the aluminum producer's declining shipment volumes outweighed better than forecast Q3 GAAP earnings, while adjusted EBITDA of €160M set a Q3 record high.

While Constellium's (CSTM) Q3 revenues rose 27% Y/Y to €2.02B, total shipments slipped 2% from a year earlier to 387K metric tons, citing operating challenges at its Muscle Shoals facility.

The company said automotive shipments were up double digits in Q3 from a year ago, but it remains impacted by the semiconductor shortage and other supply chain challenges; in aerospace, demand is very strong with shipments ~50% higher than last year for the second quarter in a row.

For the full year, Constellium (CSTM) guided for adjusted EBITDA at the low end of €670M-€690M company guidance, while free cash flow is still expected at above €170M.

"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," CEO Jean-Marc Germain said.

Constellium's (CSTM) stock price return shows a 40% YTD loss and a 36% decline during the past year.