The following is a summary of the Constellium SE (CSTM) Q1 2024 Earnings Call Transcript:
Financial Performance:
Constellium reported Q1 2024 shipments of 380,000 tons, down 2% compared to Q1 2023 due to lower shipments in AS&I, partially offset by P&ARP.
Revenue had a decline of 12% to €1.7 billion, majorly due to lower metal prices and shipment volumes.
The firm reported net income of €17 million in Q1 2024, down from €22 million from the same quarter last year.
Adjusted EBITDA was €137m for the quarter; however, excluding the negative non-cash impact from metal price lag, it was approximately €150 million.
Operating performance led to a deficit of €8 million in free cash flow, but the company still expects a positive cash flow exceeding €130 million for the year.
Net debt rose slightly to €1.7 billion due to unfavorable U.S. dollar translation impact.
Business Progress:
The company initiated its share repurchase program, and thus far, 330,000 shares have been bought back for $7 million.
With support from U.S. Dept. of Energy, Constellium is making investments in low- or zero-carbon technology.
A major investment, the FD6, is expected to conclude by the fourth quarter of this year.
The firm expects strong H2 2024 performance, driven by a recovery in packaging and strong automotive performance.
Constellium's hedge costs continue to offer tailwinds as they operate at levels better compared to 2023.
The firm aims to increase recycling and autonomy from primary producers, with recent investments in France and Ravenswood.
While focusing on share buybacks and maintaining financial discipline, the company is also open to selective M&A opportunities.
More details: Constellium IR
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