CSTM - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Constellium's Third Quarter 2020 Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there'll be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your first speaker today, Ryan Wentling, Director of Investor Relations. Thank you. sir. ahead, go Please

Ryan Wentling

I XXXX to earnings operator. our everyone third quarter call. would you, welcome like to Thank

On the Matt. today's constellium.com, call A call Jean-Marc we Germain; is today recorded. have call copy are our our will our presentation Financial is Chief of Chief available the being Officer, for Q&A on and Peter a After slide presentation, and the session. Executive today's Officer, at website

Private a the and begin, financial Reform of at I'd and uncertainties. encourage include known expectations, company's the statements anticipated future of like Securities filings. website performance, involve Litigation and call events our XXXX. look regarding visit Such operating Today's statements take and we recent Before company's risks Act within forward-looking unknown everyone the and to may include to statements meaning and may the

specific of under could from please a factors presented in date factors as result any those For statement Risk on new annual except Form in otherwise, a this XX-F. is report events We results as materially refer the expressed risk of forward-looking statements, Factors in the to the differ to future our presentation. or summary that heading or to of information, presentation forward-looking as no the by required revise law. of information update undertake All obligation the cause

slide attached would today's certain hand measures. I see Please to call in of which IFRS regarding financial financial includes to non-GAAP the addition, information measures presentation Jean-Marc. like In today's the reconciliations supplement now non-GAAP over disclosures. presentation, our

Jean-Marc Germain

Constellium. you thank everyone, in morning, interest Good Ryan. Thanks, afternoon, your and good for

Slide to X, turn please. Let's

that health of the is safety first our the to Before we third I and quarter, want discuss priority. the our employees reiterate from highlights our

want strict follow employees thank our precautions I are to continue risks We pandemic. seriously. protocols taking to these the who the COVID-XX from mitigate to

in many the to continues globe, safe. and communities must remain As vigilant the around virus spread we

was this XXXX. the performance the a highlights for third our Overall, discuss quarter company. from let's very Now, of good

ramp on track. did is weak, the is recovering While there duties anti-dumping benefited the automotive from strong right the is our recovery on from is experiencing recovering up second operational recent and demand you preliminary business and improvement. Aerospace of AS&I difficult a successful from sheet U.S., platforms, and and on job the for but solid optimism industry with show a the costs. clearly great its P&ARP side, three Peter across demand. remains sheet businesses are and still benefiting reason TID all will announcement auto body we quarter, the in can

nine XX% a €X of million the delivered the of first this adjusted to months, I decline the again a income compared the compared to first year, third Now for the million XXXX. months EBITDA a was in to shipments of operate that decreased our the last of roughly cost in of related mental minimize affected few quarter. Revenue of of one-third was quarter €XXX the we were This prices. pass-through generated to approximately our want third acknowledge Constellium to XXX,XXX risk. strong third is prices, €XXX revenues to the Net net X% and team last quarter in lower related decrease metric details. XX% lower of to remind metal EBITDA compared by you income while Adjusted to in two-thirds model metal changes business XXXX. the €XX of to compared are revenue I XXXX. to €X.X a billion. XX% quarter third decline Shipments performance nine quarter great result, year. decreased compared Of million million of tons, of €XXX and million

guidance This €XXX to long-term the of EBITDA in due can time, pandemic. future, deterioration does XXXX. not adjusted adjusted our conditions too outlook to not economy of consider, hopefully look reinstate a cause when current guidance establishing COVID we severe example, on are distant in for to in the million the is – We based million and EBITDA We guidance. €XXX forward

cash to cash free of XXXX €XXX flow a exceptional our flow first current months €XX to market an Our we €XXX our environment result This XXXX. of million million XXXX. is third was €XXX for flow in the million on view of the Based million. generate nine in to free brings conditions, cash expect challenging and quarter of in free

consistent flow. We continue generators be to to commitment free of on cash deliver our

Deleveraging end – times detail. X.X will I to in our quarter. performance over Peter? financial hand top was priority of third discuss the Peter the leverage remains Our now of ours. to

Peter Matt

you, Thank for everyone the today. you joining call and Jean-Marc, thank

to by of XXXX compared months now for will Slide adjusted find Turning year. and same the change X, the of periods segment in you last quarter third the first nine EBITDA the to

EBITDA million achieved €XX of X% P&ARP million €XX EBITDA, EBITDA the XXXX. adjusted by Constellium XX% or million €XX €XXX increased For EBITDA adjusted of to AS&I a third compared of by adjusted the quarter XX% €XX €XX million of XXXX, third last or million of year. million adjusted decreased year-over-year. quarter decrease million or year. to by of last of A&T compared increased million €XX compared €X to

EBITDA €XXX year-over-year. decrease XXXX. year. by decreased year. to months million nine were Constellium last XX% decreased €XX of AS&I to and first or adjusted last million by million year. adjusted of compared €XX the In €XXX EBITDA comparable million or adjusted by decreased months €XX XX% compared of million to P&ARP compared XX% of €XX first Corporate million adjusted million EBITDA costs €XX €X or Holdings million of nine EBITDA, Lastly, million achieved XXXX, €X the of of last A&T of to a

higher €XX costs Corporate than and were million last Holdings Lastly, year. €X of million

€XX H&C expect XXXX. million approximately We in of costs

X%, fourth of last cans X due fell both of result shipments temporary recovery of were in of compared Shipments OEM €XX from by to temporary rapidly. can automotive stronger a year. to quarter the quarter. as on in in third reduced weakening P&ARP year-over-year. translation, €XX Volume the we the believe of demand dollar headwind of third focus million a COVID-XX. during March Now levels the quarter. million the of the We Adjusted our headwind are U.S. due the Europe, last North shutdown labor shipments to with tailwind slightly was strong control important American X% plant and increased as to year recovered of in million Neuf-Brisach broad-based due in the is to and quarter. Slide primarily the non-cash, our compared a to sheet consumption customers these turn million expect Costs XX% which FX was Packaging a quarter shipment effects improved and the France cost increased market segment. increased and let's as €XX EBITDA in contributors. and maintenance of €X Automotive to

in we be trajectory provided million we separately EBITDA €XX XXXX. a million to improvement. from to While negative positive want for of on Bowling XXXX million provide quarters, – €XX update result Green’s in not Bowling have adjusted what few will to the XXXX Green an estimate €XX the past negative I increased in negative

short improvement over think in years. two I – that or years an all we is short impressive can over two agree this

Volume by XX% the Adjusted let's Now lower a TID shipments and XX% A&T €XX EBITDA last to Aerospace segment. last decreased year. headwind to turn €XX year. shipments. million on fell million aerospace to compared was Slide X of and focus on of compared

to match aerospace lower As rates. build orders OEM reduce and distributors to continued

to shipments lower year-over-year both the XX% decline in in U.S. shipments similar We and activity expect industrial a in by declined quarter. – TID lower Europe due the fourth to

important We million U.S. tailwind. of and recent of stronger €XX €X Cost expect million headwind was due strong contributors. FX was in labor maintenance translation €X and cost the quarter fourth some evidence control were recovery a in in mix the million to demand the with broad-based Price quarter. on tailwind as

Looking-forward, through will despite a the as of XXXX, EBITDA positive at in market a segment A&T XXXX. lower expect half challenging remain contributor we the than face conditions adjusted difficult level first we but XXXX year-over-year comparisons the expect to

particular in cost activity Europe. and were Costs turning Now million comparable XXXX. Volume was Price last to industrial Automotive compared X% and with headwind. control €X Auto subcontractors demand its due in focus efforts third to from increased restructure quarter the the team €X as €X lower business strong AS&I and of to €XX to on Structures strong Adjusted and back compliment million million were tailwind. let's I year to was automotive track. shipments on on it OEMs. to the get a mix million wanted the maintenance recovery tailwind of EBITDA important XX declined shipments Slide by contributors. segment. for labor, €XX million Industry

headwind million €X was quarter. translation the FX Lastly, in

the Now the the favorably to cost on the can Slide strong the cost each turning third the flex, of flexed XX% quarter, change our represents in P&ARP of by Cost for XXX% reflects XX% change control. over of reductions third in excess A&T to cost in XXX%. see our we flex I XX, highlight AS&I the in flex page, quarter. our In cost of Effectively due businesses partially cost to last quarter. continued XXXX, the at for XXXX. that cost performance the excess XX%. structural of to XXX% to the want Cost during provided flex you reduction our quarter X.XX. at to we're quarter by With bottom compares and revenues strong cost dollar revenue, as third At able demonstrated every change compared declines, at cost. revenue This of we of cost flex

including maintenance million across Excluding related cost cost driven Labor cost the aid €XX decrease, million compared COVID employment metal total of these third These the savings and labor European XX. €XX include business, control over by fees. benefit represented last €X million reduced approximately strong and quarter half savings the to by from professional cost were depreciation, state we to of approximately year.

cost are goal secured. in been Horizon €XX have Combined of major stand announce pleased €XX savings savings. we a of very initial to today, already Horizon million As operation. with remember the we one-third savings estimate costs lean we platform a where reducing is reduction project Horizon Project Project I reduction XXXX XXXX committed was initiative, from of you'll cost you our these million. our XXXX. which of our XXXX From know, of XXXX, and annualized excess Fixed to successor to running am

opportunities our base. of I We excited the out removed over have million cumulatively reduction cost about significant €XXX of cost front that in are remain us.

We a financial to in from profile entered Fixed margins stronger than the crisis important this an cost reduction with emerge when it. tool working is we and improved are strategy.

net debt the to balance XX end debt Now and lower capital very position. of times, quarter, our discuss third than than the €X.XX liquidity let's at XXXX. X.X our net sheet which was our turn the We Slide was and discipline. our million to of At remain €XXX committed billion, and leverage more is end position

our XXXX XXXX. you €XX we XXXX, €XX less million CapEx As target we Through months €XXX year. than know, to from period the reduced nine the CapEx of spent first reduction million, last million of approximately a same in

flow million cash and for free nine the the first €XX €XXX quarter was Our million XXXX. for third of months

of environment. given commitment extremely these flow be generator. They free underscore proud to are We strong, and our a business the cash consistent achievements,

to and €XXX As in flow Jean-Marc free we of is view based priority noted XXXX, million committed expect to a firm current million to €XXX Generating flow our cash remain cash of we conditions. free market on de-leveraging. earlier, generate

you we can have the summary side no XXXX. our the of As on maturities left-hand page, until bond in bottom see debt

over Jean-Marc. the with very hand comfortable liquidity call We the Our quarter. position. this now to billion at third of end was €X liquidity remain back the I'll

Jean-Marc Germain

Thank Peter. you,

the Let’s our competitive turn discuss geographies start end-markets. XX end represents LTM to I'll Slide We packaging revenue. across Packaging customers our of and advantage. is our XX% with of market. believe portfolio products and markets, balanced the

continue We demand demand market see Europe. strong North to in America, stable in

at are packaging tailwinds levels. aluminum shipments market cans. preference packaging has running believe Our or growth more by long-term secular XX% year’s customer We the currently driven of last for

expect to Europe, demand the in In lines years the should growth sheet. America. continue to U.S., continues only sheet demand Our grow the sheets customers in These one the sheet on body drive of the term. packaging to preference substitution trend additional auto in can for lines can aluminum to The for can for North consumer to the market invest continue in come. supply In tailwind new incremental to based demand steel. we tighten can the over medium-to-long of of for

reducing regulations to move vehicles. With will emissions, at aim aluminum. efficiency the to need market Now automotive. a let's continue increasing secular fuel Automotive remains automotive growth to and lightweight. Customers for prefer larger continue to market

electric to importance the of achieve positioned fleet. gain aluminum and is to continue Constellium fleet. In range to the automotive of due to their addition, aluminum vehicles share vehicles in secular well intensive to of of and are to These the we objectives. this hybrid the expect shift light-weighting realize benefits electrification the

Moving at the Europe. the rapidly to level, strong. in in North or recent second for production year's of more running trends, The demand quarter OEMs both today quarter. production in as America increased the very at OEMs which dependent automotive continue products will resumed are demand Most be last and OEMs third the near on our of to is level and

the crises for Aerospace at represented remains have now near-term build turn build our to levels. MAX clear effects issues rate how revenues. the and it OEMs Aerospace and the reduced COVID-XX will The outlook long uncertain, these aerospace. aerospace rates remain due of isn't Let's to XX% XXX LTM from

continues our the to continue likely and aerospace Based each strategy on North Europe expect markets. on persist destocking visibility, approximately of a the of of we XXXX. first products these business economy we industrial through through of in health of at level. XX% in our to half markets quarter inventory Our are execute In general, operate in range year’s to last XXXX diversified the America. specialties, the and In current of expanding other fourth on dependent

in these European For extrusions, are markets. TID, defense remain signs weak solid in remains markets while North improvement, markets solid and industrial strong, across end Europe. markets most most remain America of the showing transportation

to Philippe contributions that Before concluding. endeavor. know a you our Constellium over in the a AS&I Hoffmann I for operations the now has well that many join committed I believe he in time. held am results Unit deployment, third lead turnaround. take-over to the next to and recently, by the entire President to that very wanted leadership leave positions history capital Executive during Constellium as our very into Business Auto session, the has Philippe including numerous opportunity, company, In I reduction, excited a XX Most tremendous shareholder want to team in has and for of Committee. was announce charge I investment, Warton this conclusion, roles decided operator, thank to management Paul him let for in led and harvesting of Structures would I With efforts innovation. quarter his to with made past promising value and wish also like and challenging has proud and long I will different open Paul debt years AS&I disciplined remain Constellium him and am Constellium his benefits what strategy the our please. We future. that, operational execution, creation. will we Q&A of

Operator

from Deutsche Thank you. ahead. [Operator from question Chris Instructions] comes Terry go Bank. Your first Please

Your line is open.

Chris Terry

questions and few you, from Jean-Marc Peter, me. Thank a

rates. the start with to utilization wanted Just

said Do you have point? in the about and three areos, can this then packaging you think it aeros to XX%. too to year, have numbers Do last you is at next at share? think or so? you XXX% that hard Or for you rate on close utilization for tell about I So those quarters the that XX%, autos

Jean-Marc Germain

Good to morning, hard tell. it's Chris. On aero,

obviously are customers. around the which the signs preparing possibly for stabilizing I we're we've that what rates a of also we positive in But XXX rates heard back. before. at low are There MAX our with and is continuation story coming think discussions build

I prognostic really of to levels, difficult to six, future. nine best is around it's months we'll those the now And think for XX%. stay our a come, assumption the So make

Chris Terry

you stabilization market, building the auto or momentum end are the of the point? seeing still on this then And more into at you. Thank year Okay.

Jean-Marc Germain

we’re seeing automakers take the supply Inventory year. three last is uncertainty I I weeks think But the as positive. to chain a stable uncertainty weeks Is of year. in of think levels are fundamentals is at good. bit week, demand the decently low. the around when of of for remain still it shutdowns will the the there to or one But end there weeks? two their

Chris Terry

Thank when all contracts, then Okay. of market, XXXX? the about was announcements Can you. signed bulk XXXX I the in give us just some just your or just that you remind packaging the that XXXX, due, downstream color is on happened you can think thinking it renewals? potential And it just had given recently,

Jean-Marc Germain

Sure.

happy extent year look And them the we So contract exactly. contracted and are and our renewals. said, very XXXX I'm we of some and XXXX We're going more for we large we will a extent XXXX, to at be, or where into quite with optimism excitement. a with well bit XXXX to and where of

Chris Terry

the All best. Jean-Marc. Thanks,

Jean-Marc Germain

Thank you. Sure.

Operator

Your from go Suisse. Credit next question ahead. comes from Curtis Please Woodworth

Your line is open.

Curtis Woodworth

Hey, on morning, operational quarter. good a great congrats and and Jean-Marc Peter,

Peter Matt

Thanks.

Jean-Marc Germain

Curt. Thanks. Good morning,

Curtis Woodworth

mill Chris' then So order how continuing degree, the of on question going a certain I and on continue guess think sheet pull around and the of finite to kind pretty there's some hot packaging And to full of your away mill out. amount in U.S. comments running from capacity capacity demand sectors? which I to already that's there's is maybe in U.S., growing hot

maker debottlenecking substantial tons, capacity increase you And talked can almost re-investment packaging to when want going would what that roughly appears growth curious I in side, of for your I'm with thoughts know I implies limit potential at constraints. the pretty would an And you pretty X%, today. growth then that's five how the much growth million roughly of regards going a market U.S. the in X XXX,XXX future announcements frankly, you ton it's because are for believe think full about at I'm the forward? So capacity you I a in in auto, think and event grow that next then of running tons can you're look XX,XXX upgrades further, annually a in but even the or that to year curious, past your you've to just X% about if, like, more on sheet forward. years. can industry participation that at the growing

Jean-Marc Germain

No.

problems So outlining the at we're these are you're here. excited have, to and opportunities very good

improve that evolving share mills. think our the So year, demand every you capacity constantly in to fact we and our XXX,XXX that we a from us plans that And fair good capture demand at can thing of The tactically, it bit share because options. have obviously, with is throughput that tons of we've allocate additional if fair to to decide auto – needy quite capacity same going of supply domestic gives as competing our would the I of notice, or you time, prior field capture domestically, one bit capital we a remind or our auto it, competitors strategically a for to is our can about us, provide also there. there's and long as the talk which into of little it some capacity. develop market of got back of

think cans. a towards preference consumers’ I positive It's that that goes all growing market. a the So market. is for It's

a get we can would capital Constellium challenge are investing. as makers we be industry, the makes on we for that the this expenditures whenever we as Our as And us we, important and to fair deploying. It's return certainly capital we paid talk meet for an sense expansion possible get about what and supply. ready we towards are long as

Curtis Woodworth

year do activity I operational your of increase backlog nomination Do business? Okay. Do That or you Structures would know for purposely period you that? of bidding like you've wins. capacity a which back And a have held next XX turnaround. within months then to your Structures, year roughly your the great feel accelerate makes on Automotive longer, and sense. could And in you be

Jean-Marc Germain

Yes.

essentially you turning that for successful two So make and been the we corner. results from to can sure digest quarter as year, see this significant growth. in the AS&I very right, paused this we years we've over And in

a in we nominations balanced light made of portfolio make winning that we be current environment, activity careful, stand that and important investments the sure make and to business. we activity, is it we want derisk especially in progressively returns. again growing attractive of reason where our ramp-up very We would that So get the we that start it would and to our would the maintain to that

very and we capital day fact is that sure So want – clearly in deploy and capital to priority of make conscious our return. this capital expensive, attractive whatever rates deleveraging is we're very age, of that gets is very the

Curtis Woodworth

one you're AXXX last a the That up Okay. And it and makes rate. potentially to, rates muted. XX% about there's build some one think, assuming seems relatively been Airbus I sense. stay on news taking And then aerospace, verse XX% like

So kind of two questions.

could event, any way I sense partly negative very long that but you? assuming the like any the or status saying, how will maybe of destock again, have were half, could is what today to Airbus a been to increase you guidance in continue it's for? you're is there Your And what's going to quo. this think destock. quantify then do seems on mean first that obvious And publicly they first what But quarter in AXXX be to significant comps

Jean-Marc Germain

Yes.

we’re anybody's especially for token, So a destocking the the you're will sharply destocking destocking of a this we spring we've still stage. back the destocking. reduce is it XXXX done up when to mean, to I by rates in we’ll came long our has you back quarter-to-quarter. go happens? enough supply things on is guess half variations absolutely ramp we've costs you given We'll be very is in strong seen is back rates when up, down. but can impossible mentioned, sharp given prognostic, up than second it to costs, up, seen the long the should and lasted maybe time, when when mode more how as And chain, swing extremely be even various of come acute same quickly. And and at going down. what go difficult period It back half, how – have that goes very very side It’s be much I a we've work pretty challenging. the make When It's pretty It's I think a first then full strong. be, tell. but right, tell to

Curtis Woodworth

Yes. much for very Thanks your Understandable. time.

Jean-Marc Germain

Sure.

Operator

from Josh Company. comes ahead. question from next go Benchmark Your The Sullivan Please

Your line is open.

Josh Sullivan

Yes. morning. Good

Jean-Marc Germain

Good morning, Josh.

Peter Matt

Josh. Hey,

Josh Sullivan

Just you program, looking any but the XXXX give plans idea now, has can Horizon on be with congratulations, how at you us of the you has much actually and flow, thought those of cash of of much how COVID-XX? maybe disruption brought forward, that where would by free COVID-XX been accelerated because

Peter Matt

– on I the revenues. crisis it's down in We've the would to that see everyone's than Yes, question. taken sense the in throughout coming the see down units, really I that focused the are in sharper, good say that third and adage I thanks, the say coming let the Josh. never definitely would of quarter, We each numbers in a the I advantage flex think waste. of think sharpened cost it go or Good quicker reduction. business kind you of you can cost costs costs the can are outperformance of

further So hard Horizon We I probably be much we along, a in would but feel we're earlier, are, along look million would I to as And further say, of say, the that. it's definitely forward, been we're we further say said than over say how along a probably through €XX we're exactly third kind otherwise. we've way initiative, when much really – would brought we of terms announced I we're it's has at XXXX we program. how of, the

So…

Josh Sullivan

at the it. import economics market. you just the with then you for the switching can Got for in Europe in sheet market can And anything anticipate to Do and then given America, imports work point? tightness North to over sheet from this the

Jean-Marc Germain

an XX%. have that by of there imports is trade of extent due tariff where we Section the coming policies, XXX to year, that is a to over so into increasing seen sheet induced distortion past can the Yes, large U.S.

enemy of access are and there that import importing numerous country, less content XX% exemptions means that if are you're a the foreign from can mills being the the have sheet However, than essentially which you what granted, filed domestic to. at

penalizing a of mills one interesting foreigners us of higher actually while price to to exemption. get are get the giving is domestic help – what administration So used an trying than those where, it's by situations us metal

of of we yes, little remember do imports chains I with we've a role what you play long have So, supply these a and by of continue cost produce problems the increase But electricity policy. and as scrap. source is the are to to this dirtier you that overseas become imports seen carbon distorted as and is used and less these think get focus penalized or will with sources aluminum, in here where long the power energy the U.S. stronger the that it come palatable the trade much the that sourced scraps, those it as can and it you're I of imports the here if get less the and you is return world lack from a requirements to of in Canada. mill as of sustainability, think lot then processed from will generation recyclability can't the transportation time mills And from a that aluminum And in is than time sourcing lot content of from supplier. over the are a to on domestic of the a you something this processed stronger high is

a balance. years, And just as been that you the to role couple of I imports play dealing but in for will been can fine we've frankly, we've not from doing see, with we'll past think and our a quite numbers. see the continues role, So major

Josh Sullivan

then And it. just Got a follow-up to question. Curt’s

point? battery have you seen the any – As front for specific any box have opportunity, far have the battery box nominations EV as you the at on this

Jean-Marc Germain

would we've So choice projects had secured but we be we matures communicated projects we for that – and the There's years ago, to different to all that the we the sure and battery many we boxes. three conscious can that's winning of choices that winning want can in the also for or part make had we about the more we designs we battery option before the made nearly two what get sure were let boxes digest the that nominations, make technology are haven't participating we into technology mature.

OEMs We that we're to projects substantial We'll efficient quite and – exciting are have traditional doing this ways than a more from we've today. designs gotten a R&D when the on in one two see the what make Europe battery matures, UK this than government is with grants that. do substantial boxes to much

be OEMs. X.X with those would in So more think time that have year, project years to I when go evolved working we one and would a sufficiently

Josh Sullivan

Thank you for Great. the time.

Jean-Marc Germain

Sure.

Operator

from Your [Operator Please Wondrack next ahead. question Sean Instructions] Bank Deutsche comes go from

open. line Your is

Sean Wondrack

Jean-Marc. Hi, Peter and

Jean-Marc Germain

Hi, Sean. you? How are

Sean Wondrack

doing you're well. Hope

Jean-Marc Germain

Yes.

Sean Wondrack

what's So going there. it's packaging high hear resuming great in the and market, on pretty the utilization the capacity Jean, demand auto is you've and to

this just to there's the So few only around sector, one an ask suppliers minimum obviously the your environment? are pay would in as work there, very right function or which aerospace these year long to of of now. aerospace. does take sort contracts question five that of to is discussed assume. difficult with a You kind how I or But seven how the sort past, in more have they do going work and customers, I'm Obviously sort contracts in you've of

Jean-Marc Germain

Yes.

requirement are So based. they

the to good customers that obviously the we it's the be into in share with to the work they up should within the take-off to prolong frozen of the are partnership demand in business or living it not have right, and the very right. days and the OEMs them our day markets, don't end So so can at take which we volumes of impose customer say strategic the decided we case pay. of on to don't conducive year, a by a that's for window, share to through, – a provisions we Because good with And way forcing them otherwise would and that a a need, of too long. XXXX XXXX, could take destocking be

we come are want and earnings solidly So collaborative strategic we relationships our realities individuals It's sure on the paying we into the – I I think and sure we call, the more as year to very the this lifetimes our of adjust than I we make they make longer this times market. customers. want to we've very continue decided quickly at on for, very that more commented mean, ultimately take to that crisis that from prior the with had so future. these to we've

Sean Wondrack

think lot on lower Have I Or have Right. sort just described been prices? seen that that of limited? market And based is to maybe or any sort you of at the that sort construct sense. that you of share of grow peers a makes competitors is who trying

Jean-Marc Germain

we've – a with are think so. comment XX contract. don't essentially. made on earlier I we've got years, year, the mean contract Well, that’s signed the that’s this OEMs, the for I Airbus XX-year share – fixed we the market These

extent to really of and the no business more of an who somebody contract. has at to somebody opportunity do already there's not So the come in get got

Now, their Airbus all doesn't do with business us.

when contractual renew. contracts So market but other case, timeframes our in different competitors except or we now to share have may are exposed the provisions,

Peter Matt

competitors destocking. to for hard of Yes. It's do really period that in also a

Sean Wondrack

great That lot sense. you basically talked corona right. front, taking forward going And last it me then are point more and was such take would you've sort to this costs a difficult out at where obviously at additional that starting I you've think taken outbreak, out. XXXX. excuse through of XX out Right, that a you year on good that million quickly year job looking done just about given a And job? – the have costs, done more guys with this getting versus cost of Project the you Is and make

Peter Matt

Sean. Thanks, Yes.

so think couple one. of things, So I number a

Project and our Horizon was XXXX million. is million XX reduction of as achievement part cost XX initiative remember fixed XXXX You our

magnitude opportunities the lot just So them finding and of the relative company done be not and you we'll there's that we're so see shows never to think in find. with think this. we we to a still continue hard opportunity We

that's of the of DNA part of So here. the kind team

to what of quickly a it it of our We've get lot but lot year. that a reduction where done the of around times we we this efficiencies There's running around us of of fixed a like equipment AS&I, of is kind more In the it plants external there that, a in lot example about trying added kind where of you've did our around, in of had opportunities and also resources, a more on in saw got a kind brought running metal. in and quarters lot reducing of two efficiently, opportunities good past they as you and efficiently. are, extra turn the we company a a cost of are consultants, were manufacturing terms of kind to talked going people cost big external around we've of lot metal last when in last lot help

So of running kind that lower and and all gotten sustainable of at cost of much more a kind a on now we've rid base. our we're own of

lot say say a places, of a but would different of it's I So bit we opportunity. coming see still quite I'd from

Sean Wondrack

then thought sort between has Sounds greener just basically how – candidates somewhat and curious might opportunities a there them. the they of quick for which present good. can from any And touted I And last you if you opportunities of about two Biden company. me. could presidential Obviously, attack one of the your was agenda,

Jean-Marc Germain

next see whenever election we'll gets the Tuesday Well, or over. later

think have could continuation from other got change some activities activities from and of in benefits activities balanced very the But I a portfolio may of the policy. we've a policies. benefit

whatever have in policies how activities sail it your faction. think, for are to portfolio I to the again in change balanced I think we give good the have and us see ability through, of goes we

Sean Wondrack

Thank guidance and right. appreciate you the all here. very much All

Jean-Marc Germain

Thanks, Sean.

Operator

closing would queue. have call to now turn over Jean-Marc I further no remarks. Germain, CEO Constellium’s We like questions to for in the

Jean-Marc Germain

being about our generation. the And much February Thank more year so everybody strong the we are you Constellium we a cash earnings. with note to flow on to able forward proud your determined much, with We're free of your QX look Well, you quarter. you very interest. for and tell you we interest to Goodbye. to again very for long-term in finish come back when this in strong very thank

Operator

concludes you conference gentlemen, Thank today's call. this Ladies and for your participation.

You may now disconnect.

Constellium SE (CSTM) 27 Oct 202020 Q3 Earnings call transcript