Constellium’s Earnings Drop in Q3 Due to Swiss Flooding Impact

Constellium’s

France-based aluminium producer Constellium has reported a decline in earnings for the third quarter of 2024, with the effects of severe flooding in Switzerland continuing to impact its operations. The flood, which affected the company’s facilities in the Valais region of Switzerland, had significant repercussions across several key business divisions, especially aerospace, transportation, and automotive.

Financial Performance in Q3

For Q3 2024, Constellium posted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of €110 million ($119 million), marking a 35% drop from the same period last year. Additionally, revenue fell by 5% to €1.6 billion. The company shipped 352,000 tonnes of aluminium products in the third quarter, a decrease of 5% year-over-year.

Impact of the Flooding in Valais

The flooding in late June severely disrupted operations at Constellium’s Sierre and Chippis facilities, both located in the Valais region, which are vital to its aerospace, automotive, and packaging operations. The impact was particularly felt in Constellium’s aerospace and transportation division, which saw its EBITDA fall by 41% year-over-year to €47 million. The automotive structures and industry division also suffered, with its EBITDA plummeting 61% to €10 million. Similarly, Constellium’s packaging and automotive rolled products division saw a 9% drop in EBITDA to €61 million for the quarter.

Revised Full-Year Forecast

As a result of the operational disruptions and broader market challenges, Constellium revised its full-year EBITDA forecast, lowering it to €580-600 million from the previous estimate of around €710 million. CEO Jean-Marc Germain acknowledged the significant challenges faced during the quarter, citing weakened demand across multiple end markets and the continued impact of the flooding at the company’s Swiss facilities.

“The team faced significant challenges in the third quarter, including increased demand weakness across several of our end markets, and the ongoing impact from the flood that occurred back in late June at our facilities in the Valais region in Switzerland,” Germain said. “We continue to face uncertainties on the macroeconomic and geopolitical fronts, and we have a demand environment that has continued to weaken throughout the year, which accelerated during the third quarter and has now spread to most of our end markets.”

Outlook for Constellium

Despite these setbacks, Constellium is working to mitigate the impact of the flooding while navigating global market uncertainties. The company’s ability to recover will depend largely on the stabilization of macroeconomic conditions and the resumption of full operations at its Valais facilities.