Constellium SE (CSTM) Q3 2024 Earnings Call Highlights: Navigating Challenges Amid Market Headwinds

GuruFocus.com10-24

Revenue: EUR1.6 billion, down 5% year-over-year. Net Income: EUR3 million, compared to EUR64 million in the previous year. Adjusted EBITDA: EUR110 million, including a EUR17 million negative impact ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nConstellium SE (CSTM) Q3 2024 Earnings Call Highlights: Navigating Challenges Amid Market Headwinds\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-24 17:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/constellium-se-cstm-q3-2024-090031731.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: EUR1.6 billion, down 5% year-over-year.\nNet Income: EUR3 million, compared to EUR64 million in the previous year.\nAdjusted EBITDA: EUR110 million, including a EUR17 million negative impact ...</p>\n\n<a href=\"https://finance.yahoo.com/news/constellium-se-cstm-q3-2024-090031731.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CSTM","symbol_name":"Constellium N.V.","start_time":0,"source_url":"https://finance.yahoo.com/news/constellium-se-cstm-q3-2024-090031731.html","article_id":"2477443503","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/N0v2cO7uGDRbucIQj3wFZg--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/4193cd2d620c7458954a2ccdae42d97f"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2477443503","pubTimestamp":1729760431,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Net Income: EUR3 million, compared to EUR64 million in the previous year.Adjusted EBITDA: EUR110 million, including a EUR17 million negative impact from the flood and EUR3 million from metal price lag.Free Cash Flow: Negative EUR10 million, including a EUR6 million negative impact from the flood.Share Buyback: 1.2 million shares repurchased for USD 21 million in the quarter.Liquidity: EUR778 million at the end of the third quarter.P&ARP Segment Adjusted EBITDA: EUR61 million, down 9% year-over-year.A&T Segment Adjusted EBITDA: EUR47 million, down 41% year-over-year.AS&I Segment Adjusted EBITDA: EUR10 million, down 61% year-over-year.2024 Adjusted EBITDA Guidance: EUR580 million to EUR600 million, excluding flood impact and metal price lag.GuruFocus has detected 3 Warning Sign with BITGF.For the complete transcript of the earnings call, please refer to the full earnings call transcript.Constellium SE  reported a lower recordable case rate, indicating improved safety performance.The comp","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"CSTM":"Constellium N.V."},"translate_title":"Constellium SE(CSTM)2024年第三季度收益看涨期权亮点：在市场逆风中应对挑战","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CSTM":1},"content_text":"Revenue: EUR1.6 billion, down 5% year-over-year.\nNet Income: EUR3 million, compared to EUR64 million in the previous year.\nAdjusted EBITDA: EUR110 million, including a EUR17 million negative impact from the flood and EUR3 million from metal price lag.\nShipments: 352,000 tons, down 5% year-over-year.\nFree Cash Flow: Negative EUR10 million, including a EUR6 million negative impact from the flood.\nLeverage: 2.8x, slightly above the target range.\nShare Buyback: 1.2 million shares repurchased for USD 21 million in the quarter.\nLiquidity: EUR778 million at the end of the third quarter.\nP&ARP Segment Adjusted EBITDA: EUR61 million, down 9% year-over-year.\nA&T Segment Adjusted EBITDA: EUR47 million, down 41% year-over-year.\nAS&I Segment Adjusted EBITDA: EUR10 million, down 61% year-over-year.\n2024 Adjusted EBITDA Guidance: EUR580 million to EUR600 million, excluding flood impact and metal price lag.\n\n\nWarning! GuruFocus has detected 3 Warning Sign with BITGF.\n\nRelease Date: October 23, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nConstellium SE (NYSE:CSTM) reported a lower recordable case rate, indicating improved safety performance.\nThe company successfully started up its new recycling and casting center in Neuf-Brisach ahead of schedule and below budget.\nConstellium SE (NYSE:CSTM) continued its share buyback program, repurchasing 1.2 million shares for USD 21 million in the quarter.\nThe company maintained strong liquidity with EUR778 million at the end of the third quarter.\nConstellium SE (NYSE:CSTM) successfully refinanced its senior notes and extended the maturity of its Pan-U.S. ABL, enhancing financial flexibility.\n\n Negative Points \n\nShipments decreased by 5% compared to the third quarter of 2023, impacting revenue.\nNet income dropped significantly to EUR3 million from EUR64 million in the same quarter last year.\nThe flood in Valais had a substantial negative impact on financial results, affecting adjusted EBITDA and free cash flow.\nDemand weakened across several end markets, including automotive and industrial sectors, leading to a challenging quarter.\nThe company's leverage increased to 2.8x, slightly above its target range, due to market conditions and financial impacts.\n\n Q & A Highlights \nQ: Can you remind us how much the non-market related EBITDA drivers could add to EBITDA when combined? A: Jean-Marc Germain, CEO: The recycling center in Neuf-Brisach is expected to add EUR35 million to EUR40 million next year. Vision '25 should contribute over EUR25 million in savings. Repricing of aerospace contracts will also add to EBITDA, though the exact number isn't specified. Improvements at Muscle Shoals are expected to provide further EBITDA lift, despite tighter scrap spreads. Overall, these drivers should add over EUR100 million to EBITDA.\nQ: Does the Vision '25 cost reduction of EUR25 million include any incremental cost reductions? A: Jack Guo, CFO: The EUR25 million is incremental to the prior Vision '25 target. We are accelerating efforts beyond the initial EUR50 million savings target over three years, focusing on labor cost reductions and cutting nonessential categories.\nQ: Can you walk us through the market drivers and quantify the impacts that are worse than expected? A: Jean-Marc Germain, CEO: Industrial markets in North America saw a sharp decline, particularly in TID products. Automotive demand is down 5%, especially in electric and luxury segments. Aerospace demand is lower due to supply chain issues. Scrap spreads in North America are tighter, contributing to an EUR80 million to EUR100 million negative EBITDA impact compared to last year.\nQ: Are there any signs of recovery in the market, particularly in aerospace? A: Jean-Marc Germain, CEO: No signs of recovery yet in automotive and industrial markets. Aerospace demand is temporarily affected by supply chain issues, but the long-term need for aircraft remains. The current mix shift in aerospace is causing margin compression, but margins are still attractive historically.\nQ: How does the flooding impact split between AS&I and A&T segments, and what is the expected impact on free cash flow? A: Jack Guo, CFO: The flood impact is roughly 2/3 on AS&I and 1/3 on A&T. The free cash flow impact is offset by insurance proceeds, with EUR20 million expected next year. We are not providing specific free cash flow guidance for 2024 due to timing uncertainties in working capital release.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2477443503"}