Constellium expects its automotive structures business to return to historical profitable levels this year and although its aerospace business may remain under pressure, the company expects this segment to rebound by the end of the year.
The French aluminum maker expects its adjusted EBITDA to be in the range of €110-115mn ($132-139mn) in Q1 2021.
The COVID-19 pandemic posed a challenge for the company in the first half of 2020 and affected its annual consolidated sales and revenue, according to Jean-Marc Germain, the company’s chief executive officer.
In 2020, Constellium’s consolidated shipments fell by 10pc to 1.4mn mt from 1.5mn mt in the previous year but rose by 2pc to 374,000mt in Q4 2020 from 368,000mt in the same prior-year quarter.
Of its total sales, the Packaging & Automotive Rolled Products (P&ARP) segment’s shipments fell by 7pc to 1.01mn mt in 2020 from 1.09mn mt in the previous year Aerospace & Transportation (A&T) saw a more significant decline with shipments falling by 24pc to 183,000mt from 242,000mt during the same period. Sales of the company’s Automotive Structures & Industry (AS&I) also fell by 9pc to 229,000mt from 250,000mt during the period under review.
In Q4 2020, P&ARP shipments rose by 7pc to 271,000mt from 255,000mt in the previous year’s quarter. A&T shipments declined by 23pc to 43,000mt from 56,000mt and AS&I sales increased by 4pc to 60,000mt from 57,000mt during the same timeframe.
The company’s consolidated revenue dropped by 17pc to €4.8bn last year from €5.9bn in 2019 and declined by 9pc to€1.2bn in the fourth quarter from €1.3bn in Q4 2019.
The firm’s adjusted EBITDA fell by 17pc to €465mn last year from €562mn in 2019. Its adjusted EBITDA in Q4 2020 fell by 8pc to €111mn from €121mn in Q4 2019.