CHICAGO Constellium NVs profits narrowed in the third quarter as a weak U.S. dollar dented results despite gains in the aerospace and automotive sectors.
The Amsterdam-based aluminum company reported net income of 45 million ($60.5 million) for the three months ended Sept. 30, down 8.2 percent from 49 million in the year-ago quarter on revenue that dipped 2.6 percent to 862 million ($1.2 billion).
Net income of 67 million ($90 million) for the first nine months of this year fell 21.2 percent from 85 million ($114.2 million) in the same period last year as revenue dropped 3.8 percent to slightly less than 2.7 billion ($3.6 billion). Net income for the year was also dinged by 24 million ($32.2 million) in costs recorded in the second quarter as a result of Constelliums initial public offering (amm.com, May 23), the company said.
Third-quarter shipments totaled 257,000 tonnes, up 0.4 percent from 256,000 tonnes in the year-ago quarter, although shipments for the first nine months of the year slipped 0.9 percent to 791,000 tonnes.
Constelliums Ravenswood, W.Va., plant saw quarterly results improve year on year due to the effects of a strike in the year-ago quarter, the company said.
"We remain confident based on our performance through (the third quarter) that we will deliver a strong year-over-year performance in 2013," Constellium chief executive officer Pierre Vareille said in a statement.
The aerospace and automotive markets stood out as bright spots in the third quarter, the company said, noting that both sectors also boast less exposure to spot prices vs. other sectors.
In aerospace, Constellium said it was seeing market share gains thanks to a multiyear contract with Toulouse, France-based aircraft maker Airbus SAS, although sales were hit by high inventories at some major customers.
Auto body sheet volumes were strong in the third quarter as Constellium continued to win business at major European car manufacturers, including being selected to supply a German automaker for a new model slated to begin production in 2014, it said, without naming the manufacturer or model.
Constellium also said its foil stock business performed well, while the canstock sector was stable. However, soft alloy volumes were down sequentially during the quarter due to a sluggish building and construction market, the company said.