European value-added aluminum company Constellium NV released its results for the fourth quarter and full year of 2021 this week. positive for both periods.
During the last quarter of the year, Constellium shipped 385,000 metric tons of aluminum products, a 3% improvement over the year. Revenue increased 37% over the year to €1.7 billion, while net profit increased from €26 million in 2020 to €7 million in 2021. Adjusted EBITDA rose by a third in the quarter to 147 million euros, while the business had 118 million in operating cash and 14 million euros in free cash flow.
For the year, Constellium shipments increased 10% to 1.6 million metric tons. Revenue increased 26% to €6.2 billion, while net profit was €262 million, reversing a net loss of €17 million in 2020. Adjusted EBITDA increased by a quarter to €581 million, while operating cash flow for the year was €357 million with free cash flow of €135 million.
Jean-Marc Germain, CEO of Constellium, said in a Press release that the company has delivered strong results despite the ongoing global coronavirus pandemic.
“Constellium ended 2021 with a bang, and I want to thank each of our 12,000 employees for their commitment and relentless focus on safety and serving our customers. 2021 has been another year of challenges and uncertainties brought by the COVID-19 crisis, including inflationary pressures across the business, weak aerospace demand, semiconductor shortages in the automotive and other supply chain issues. Despite these challenges, we achieved a record adjusted EBITDA of €581 million, including record results in P&ARP and AS&I. We generated a solid Free Cash Flow of 135 million euros and reduced our leverage to 3.4x.
“Looking to 2022, we expect demand to remain strong in our packaging and industrial markets. We are beginning to see the beginnings of a recovery in aerospace demand and expect year-over-year shipment growth in the coming quarters. In automotive, we expect demand to remain weak at the start of the year as the shortage of semiconductors persists and to improve in the second half. We expect inflationary pressures to continue at a high level throughout 2022, although we are confident in our ability to offset most of the impact with improving prices and our continued focus on cost control.
“Based on our current outlook, we expect adjusted EBITDA of €600-620 million and free cash flow above €150 million in 2022,” Germain predicted. “In April, we will be hosting our Analyst Day at our Muscle Shoals, Alabama plant, where we plan to update you on our business, detail our plans for the future, set new long-term directions, and present our 2030 sustainability strategy.”
Constellium, based in France, was founded in 1855 as Henri Merle et Compagnie, then renamed Pechiney in 1950. Pechiney was purchased by Alcan in 2003, which was purchased by Rio Tinto in 2007. In 2011, Rio Tinto sold Alcan Engineered Products to Apollo Management (51%) and ISF (10%). Constellium produces rolled and extruded aluminum products from various alloys, generating sales of €6.2 billion in 2021.