Constellium SE (CSTM) 23 Jul 242024 Q2 Earnings call transcript

Good morning, everyone, and welcome to the Constellium Second Quarter 2024 Results Call. My name is Angela, and I will be coordinating your call today. [Operator Instructions]

I would now like to hand you over to your host, Jason Hershiser, Director of Investor Relations for Constellium to begin. Please go ahead.

Angela. you, Thank to earnings like to second our I welcome XXXX call. quarter would everyone

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

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

risk of under specific from please could of presented in date factors as result any those summary statement Risk on new annual except Form in otherwise, a this XX-F. is report events We results as materially refer the expressed a factors forward-looking statements, Factors in the to the differ to future our presentation. or that For 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 today's certain measures. see Please in of which IFRS regarding financial financial includes non-GAAP addition, information measures presentation In today's the reconciliations supplement non-GAAP disclosures. presentation, our

EBITDA consolidated based with The longer we remind noncash will that over new the exclude discussions beginning call to the the of last turning price quarter, level adjusted the of definition to metal revised lag. everyone prior impact SEC. no Jean-Marc, wanted I the on definition Before at

of noncash the lag a business. assessment metal We other will as with necessary is get to and impact true economic price to performance the it provide a stakeholders investors continue of

for provide guidance also the the to adjusted impact. impact exclude and adjusted we EBITDA exclude continue will segment EBITDA Our any will

that, hand And now Jean-Marc. like over to with to would I the call

good interest and morning, Good Jason. your afternoon, you, you for thank Constellium. everyone, Thank in

on from results. X begin to I our priority. Slide Let's discuss second the start our with would #X quarter and Safety, like highlights

was rate X.X quarter, the case per for second million worked lower of year. in half the of to a rate hours leading recordable Our the first

need among than While it higher where this we reminder puts always to on done constantly strive in This safety the safety humbling and to a which and we our have take ambitious company is focus past. performance we never-ending is we achieve task all to best deliver maintain the we us for we manufacturing, that want our rate in while be, best-in-class one to seriously. performance, the target safety is have better very set the a

the lower to shipments metal unfavorable risk. operate a we prices. which exposure minimizes partially our prices, by metal model, affected X% price decreased offset metal and our are Shipments higher were in financial to shipments of compared our AS&I. Turning X.X year. tons, results. quarter to down and in P&ARP of sold last shipments of due were business last in due while pass-through changes and result Revenue compared XXX,XXX primarily revenues to largely by second XXXX. AS&I price Mainly we a EUR extrusion German billion the lower business X% year, lower to mix, to The Remember,

XX in though million. the includes compares in net million to quarter net XX of of of XXX year. positive price noncash million was Adjusted XX EUR quarter the second EUR the impact Our this EBITDA EUR quarter income income lag a million from in last metal EUR

compared EUR Jason we which of of record adjusted the XXX real impact this EUR the reflects year. economic of achieved million mentioned last price quarter you as performance lag, we business earlier, If XXX the metal exclude were to million EBITDA to in should, the

maintenance quarter the in of second April, reflect results the planned large two mentioned impact our quarter. year during outages this As

quarter, In expect we persist saw moved addition, half to the the in we slowing second of in second through markets year. as end which certain we the

our our Looking aerospace remained performance markets, remained quarter in America, regions specialty packaging most during healthy the Jack a to remained Automotive go to in and improve. and quarter. continued end markets Europe. in Demand across demand the both in in weak few detailed strong industrial North segment demand will continued though through demand moments. other in demand weaken

to flow. now cash free Moving

I cash we quarter. flow free to buyback that am share quarter activities our Our the report in in at million. increased pleased XX the EUR strong was

During for the shares million. USD XX quarter, we million repurchased around nearly X.X

Our second our target was quarter leverage remains X.Xx leverage within the at and end range. of the

their time. significant a While late second [indiscernible] results on difficult have courage situation incredible in very I entire current in region to our a unprecedented a will on. at not quarter of it did experienced we an Valais update thank the a take later our in for flooding Valais moment Valais little to give I to June, and this Switzerland. on impact team in the our results you full event the wanted operations

With I will our performance. on to that, Jack financial hand further Jack? now for over call the details

to turn to quarter million, everyone, than the in adjusted year, offset X% X, EBITDA compared segment decreased XXXX, you, North by softness million segment P&ARP demand in quarter automotive. America second year. more call Thank with XX% Slide EUR let's Volume packaging the was though you, quarter was of in shipments of in the the Europe. Jean-Marc, which on to second generated P&ARP joining and continues X Packaging and in a the Please last down and with now packaging stable for shipments in focus versus decreased Automotive X% of EUR lower In headwind demand improve. shipments performance. thank today. quarter XX last

that by the of second EUR a of costs. impacted mix mentioned X headwind the headwind a mainly Jean-Marc challenges facility mix as during million maintenance million result also quarter. metal a in and a EUR Shoals as Costs at of that P&ARP outage X weaker large a Price continued was planned were of were as quarter. the in unfavorable at quarter Muscle well our facility operating as results result

Now tailwind let's and A&T Slide XX% XX million A&T the to was quarter, a record as Ravenswood, aerospace stable million, mix X, versus as Adjusted EUR focus result mix primarily same were year. weakness turn last of decreased outage EUR a million, strong XX persisted the maintenance at second headwind on compared in of to the of while lower a discussed. Costs costs. in remained the to segment. of and EBITDA quarter TID. mainly weaker demand let's result last planned Shipments during the previously Price EUR a XX as operating due year. of Aerospace quarter were

German shipments lower of extruded the result certain the shipments in a automotive to last of the as on the was primarily as Slide XX% quarter. between XX% year. shipments of mix lower X versus a weaker timing and let's impact environment quarter as softer Volume a were X Industry industry Adjusted the was extrusion Costs softness were and second a million turn in in decreased a due X year mix headwind down X, to on was million last of program AS&I a were the Automotive million EBITDA compared segment. to and quarter versus XX costs. other headwind in switches. EUR business. FX products. of the year, a down our quarter in Now result EUR pricing of headwind tailwind X focus EUR quarter. operating in a EUR of million industry Europe and last Price in primarily the XX% EUR sale result million and

wanted on not the costing facing. is here to current we're but environment It the summarize slide I

XXXX know, we pass-through exposed business with and faced and of largest in not we're cost inflationary As our the operate input. we market a most you XXXX, of pressures. broad-based so aluminum, model, were changes significant price to materially Throughout

the year through ease Although have year. fourth began continued we to and some the as categories pressure to last in quarter move this ease in

Labor be nonmetal and costs to year. higher this continue other

in secured our top are and more as focus levels past. in cost we relentless As historical in control demonstrated moderately have any at prices remain actions above compared costs confident favorable well ability control with for the to XXXX remain averages. on our We although XXXX energy, our line energy environment costs to

Now capital half XX to total EUR let's year-over-year and generated of increase and lower second the less turn used of to million We in million. a EBITDA, expenditures. flow. segment by partially year-to-date cash taxes working Slide adjusted discuss for cash The interest, our XX free cash free lower in cash higher offset bringing our flow the and first EUR capital higher quarter, XX cash is result

be Neuf-Brisach. to includes facility expected of on XXX such recycling up around time around full expect we as and the noted this end this as at we quarter. projects, year The year, Looking higher quarter, start CapEx last casting budget XXXX, to on and the million on in spending center in return-seeking our is which EUR

the cash interest expect rates. We from XXX includes of impact million which EUR interest higher approximately

million, we expect working We expect full of cash and be and to other year. approximately the of use a taxes EUR for XX cash capital modest

the free a of of to now on we expect the Valais. this share we cash program. over repurchase million, use program, year impact in to our EUR of to flood and plan free cash for generate XXXX, executing flow flow XXX portion For continue We excluding the intend large

previously, the As Jean-Marc buyback in our we increased quarter. mentioned activities share

million. During bringing X.X USD for million XX total the nearly USD for quarter, just to XX around our million million we shares year-to-date X.X shares roughly over repurchased

At buybacks change compared let's dollar. of primarily unfavorable and billion the our slightly increased The second FX million Now free XX X.X discuss of the offset our was of million end to XX with sheet balance of strengthening U.S. of impact liquidity the Slide EUR position. net an the XX million the and half slightly turn translation driven to year, this first XXXX. cash EUR by end by of than more XX and in debt share our the EUR quarter, strong flow EUR of noncash of

end within X.Xx second the remain the to target our was to X.Xx our leverage committed XXXX leverage were versus the quarter range. maintaining of of X.Xx. of Our quarter and leverage at X.X end We range of down target the

end level debt capital as and the proud bond made which no the is can until the including have the progress we're we X extremely quarter, strong to the flexibility capital returning of continue XXX our second to highest see building, of liquidity we EUR ability remains at million and financial of in you our on have in our We're years. the summary, structure maturities As our shareholders. XXXX

Jean-Marc. hand call I'll that, to With now back the

you, Thank Jack.

and discuss end durable a infinite recyclable portfolio today benefiting our XX of The turn and serving sustainability-driven current Let's light Slide from which our secular is in majority currently market plays outlook. role. material to aluminum critical end markets

Turning traffic and driving wide-body confident fuel-efficient narrow more and in focused OEMs. Commercial the the passenger market. aircraft. recovery first robust aerospace post-COVID Aerospace and we of continues in build rates demand deliveries aircraft aircraft, again though that aircraft challenges on OEMs aerospace remains long-term increasing and backlogs remain fundamentals are The both strong. for slowing growing to remain market today, greater demand remain demand chain intact, including completed Major this sub for for aero supply are

Demand and strong markets space the in the also and remains defense and jet markets. regional business

In family of for strong Airware addition, experience we to our continue demand products.

stable half light America remains cars, well Consumer in slower at vehicles for past. a pre-COVID production longer while to production North than demand in grow, in is in remained Turning to demand expected no America OEM pace America near the demand remains luxury now this further though which steady levels light luxury vehicles year. today, Automotive. below has continuing Europe, we Automotive softened. weakened EVs for recover second Europe of of is to North trucks expect in levels. SUVs pre-COVID North and the albeit while Demand Europe in for has Demand in in now

products. light electrification and and long In drive will use of trends the sustainability aluminum the term, weighting for vehicle continue demand to

in weakness the result, in in this a positive are term seeing over As Europe longer both regions today. remain market we despite we the

ongoing level Canstock and us, to historical plans market the behind Let's here growth makers preference remains evidenced outlook Inventory and to in the below both end as turn adjustments long-term aluminum continues and America America. investments in Europe, for retail growing can, improve promotional The North to regions sustainable be though appear consumer the levels. activity now Packaging. capacity the demand in this favorable, by beverage can both North for from continues in greenfield at

to improvement are in We half XXXX, expecting half. the compared second in including growth the Canstock some first in

to markets and packaging we low both Longer to continue term, America in grow North to expect mid-single digits Europe.

we is we ramp Neuf-Brisach end the away. and time at building underway and center our Jack quarter expected weeks budget. is on both this to third facility the recycling project As is approach year on That few still well The start and the as mentioned, up just quickly. casting are up and a of

As some we face discussed ongoing to have before, operational Shoals Muscle continues challenges.

encouraged outage to quarter, by we we recently, the improved seen improve and maintenance and we to continue are planned the expect in have following progresses. year the second the We performance operations had there as there

As page, you of revenue. can our these months see XX just end XX% markets on the core X last over represent

lastly Turning specialties. to other

of markets industrial years weakness the around economies experienced for most have the region. We health typically now. These X each across upon specialties in markets are dependent

impacted of in specialties also the higher across weaker our Many economy Europe economy interest our the expectations. rate both While regions. the today, U.S. prior are is other than by markets remains environment stable

the markets that on in diversification our term. we conclude the we the and company markets over for we like of the end an of end longer fundamentals asset the the strongly serve, To each markets, believe is

I'm the two segment to a turn the announce be want future. of few we million our of a U.S. size The minutes Alabama on the casting business expected in was by Let's to P&ARP receive to Grant. XX Muscle to selected inclusive the recently Slide of that Defense in million Department to are exciting facility strengthen USD XX. Shoals, U.S. making grant to for capacity. now of XX USD to today is our investments Defense I Department our total project spend the around excited of internal increase

an internal XXX,XXX million by over Muscle Shoals. XXX building to completed, In we metric in terms or to capacity existing of plan increase project casting state-of-the-art will equipment details, Once at new casting install the casting pounds up tons. center

reducing supply ingot. the of recycled defense, an base inputs sheet packaging industries. for of on aluminum and external primary our to Flat-rolled investment with reduce the to expected metal also the industrial reliance are U.S. additional inputs material plate addition will In critical and is source supply, and provide of including of metal. investment The aerospace, transportation our use increase domestic self-reliant, aluminum automotive, products, rolling use

In terms expect ramp we up the center timing, of the in to casting of half second XXXX.

and the have of to proud selected Defense been this the express to industry. for our of and and honored gratitude extremely for support grant Constellium are We Department their aluminum

investment in I'm a and today Lotte largest agreement operations. cables the one second Corporation excited also announce in the is Korea to Lotte of we Lotte with of that subsidiary part on Moving Europe. is to have long-term signed with South global Aluminum of Infracell a Lotte which Infracell

collaborate and Germany. in to Lotte our be We vehicle electric to applications will in are operations from facility future Singen the battery as thrilled their electric our growth market. with used European foilstock foilstock The vehicle in high-quality support supply

in XXXX in include key ramp-up project Lotte the Singen cement our is with be total to expected to the to capacity. production finishing base contractual The the The to market and enhance our XXXX. million automotive as of is new a by Constellium XX further completed expected fold specialties Singen's will investment facility and is strategic investment scheduled end a diversify aluminum position EUR customer player of with of support around at specialty stock. lines This

projects well to the projects be both exceed expect IRR levels. within XX%, expect return-seeking We of to our and we CapEx both target existing funded

activities Constellium in of late now, flooding give at unprecedented devastated including Switzerland, Please are region, the situation in we turn which June, the Valais. an Valais on you to we I and want the industrial region Slide elsewhere. XX and In update the to facing experienced

extrusion were and operations have plate in Sierre remained in suspended and flooded casthouse shops Our and the severely Chippis since flood.

damage phase But operations and to thing. and maintenance am the important Our directly in drying underway. equipment pleased confirmed all and is are as has the facilities have that all significant was I of report impacted testing casthouse to obviously as well employees our returned not which safe, stake Cleaning and in Chippis. there is to normal most operations. the region Sierre the been and

To [indiscernible] our employees. put to around The perspective, employees approximately lower capacity the XX,XXX our XX,XXX value our out capacity. in or total metric of than less capacity Sierra of shipments tons region total into we Constellium employ and X% XX,XXX is XXX of operations total and even an manufacturing of total percentage

Europe, how compared was Given a the the capacity lower facilities. made proud and incredible time to ground stage, fact markets the of that I our from say am progress odds. in At extrusion on to can't pre-flood period team these are the limiting short serves Sierre TID than our I in the and have enough to the very there customers normal more this we they demand committed against environment. impact industry significant utilization served primarily of very a

we Turning XX, currently flood. a as the our result Slide the expecting are detail we outlook now to of and impact

of First, impact the the flood. on

and closely insurance growth This XX expect of full damages damage million, million approximately of the estimated up damage received and EUR interruption We of with are assessment company insurance before of estimates latest The costs of approximately get insurance to as assessment working today. business XX expenses. cleaning our and claim XXX figure includes million. is EUR have which our in we already to consideration EUR gross

which result certain been gross underway impact of figure currently the of potential a already also have event assistance are benefits the not and of The government account which mitigation does take plans, as into approved.

of treatment the are impact Given facilities the Switzerland, severe this the guidance at production to the the our damage, around in XXXX. including at event time flooding of extent timing for the accounting pausing our the the uncertainty and from restart we

plan have to all continue this the once we We situation unfolds, overall clearer picture impact. a guidance update reinstate at we to of and stakeholders will

Excluding approximately flood, from conditions described the EBITDA adjusted our we by compared would impact of result weaker the been X%, reduced primarily guidance XXXX market the a as expectations. have prior are More impacted some specifically, of in further North expectations demand interest tempered And where has American in been other recovery European by market. industrial our rates. specialties and automotive, markets higher

a XXXX are year. the these the and markets of we indicators the flood, improvement generate excluding persist over little expect from cash least million. EUR weak flow at free these to in in We end impact this economic Also conditions solid through of we in to expect seeing XXX

are digestible flood the impact time confident is this that this from year. We the at

stage, prioritizing are based customer at on we of this restart the And criticality and equipment needs.

ability remain we our EBITDA on XXX EUR adjusted million confident in Finally, of to target deliver our in over XXXX.

lastly Turning Slide to messages. our detail key XX, we

in quarter the team second delivered planned environment our two free strong and outages the XXXX and continue quarter. Our We quarter. the maintenance market despite delivered performance to solid buyback end the during activities and face mixed demand the we cash of in we share increased flow large

again To our let teams conclude, am me our that results our and say proud future. very and of I about excited

We teams that right markets right products over that right have overcome the right the the how and and in have to we and know demonstrated strategy, over we again the prices.

Our business flexible model is resilient. and

diversified allows market very conditions. us always to Our have different options in portfolio

high-value of crisis respond need built society. our and have sustainable products both We needs and opportunities. our sheet the to and recyclable balance seize growing the to customers we and weather

are and creating remain well focused for positioned shareholders. success executing our strategy We on for extremely value our long-term and

now open session. will we Angela, Q&A that, the With

Jean-Marc. much, very you Instructions]. [Operator Thank

Capital We from Markets. Katja have with BMO the Jancic first question

growth outlook, just you market bit is how much specifics the still Or on off major expecting going to over that little about of to Can reach are buckets drive in the 'XX dependent EBITDA. what's there? what talk million you're a recovery? starting where XXX maybe on of Maybe

Thank for Yes. questions. your you

million We operations have from EUR let's to reach it XX continued million our we a first, even go on step-up. million paused of is say, we EUR revised So in the the XXXX. need XXX than guidance more are giving implicit to EUR this though XXX base to

there's of buckets, think number if a So of these you things.

us. of the normal be near Sierre to and be First largely operations. behind will will all, back situation

aggressively not in The February capacity be starting center. big The event weather will year plan we last ramp Muscle of to the January, just quarter up second again. full recycling XXXX. close from and Neuf-Brisach of be to will aspect, this weeks going to which happen driver obviously, as early in It's now a suffered we this very and quite as the the in few year do Shoals is from

know year. this in And really in to Aerospace, built, as large will that that there next contractual addition, need need year. That's some volumes bit little delivered. have slowdown is be contracts for better the well as materialize planes some higher then are be our good be volumes we on we to We going know to year well. terms next of Those whatever as

And mentioned cost several finally, on 'XX we've calls. got prior had that the Vision reductions Jack

give very these times under control, than that happen So weather, for a elements, except are events more catastrophic the in which don't several us will much million. our row, XXX

bit growing as know, are context sheet. the market of Shoals in markets, we of Maybe and market Now Really, able got a in addition, We've that running auto of can satisfy the been little U.S. terms are give auto we detail behind the some growing more can in the in to a in growth sheet operational those. a useful we're that Muscle we working on it's challenges I'll we've through.

-- as behind are As but us, These need of recruitment at same with you in our know, and Muscle issues Shoals. we time, stabilization talent. issues we the increase to had we capacity largely post-COVID

like do. the making to be time and taking the we had But build improve a -- of We've than This and plant rate is this to we're should committed some not capital productivity the significant expenditures as the more what we the progress, same plant. efficiencies planned. would bit

this to XXXX. in improvements further So contribute should

XXXX. there this since the has down most you're you specialties of we in In market if And Automotive, to to levels. European been still well and compared XX% be comeback below that Europe, some least And XXXX hope levels. every finally, year automotive XX% down year at builds compared are do the in look will pre-COVID then the at specialties.

are these XXXX not well. we up for on But as will this counting So reaching target. pick our

of see, quiver, our deliver to feel we've comfortable our the as we on to situation plenty and currently difficult the arrows despite why and guidance. the odds So overcome in XXXX we we're challenges you in, face got and that's

how I is expected recycling If add us can new another remind the add facility to EBITDA? much may one, to you just

Yes.

We have said it's to than It XX% million XXX other more years X build. at took IRR. roughly

So large, XX a million by and say, number. is

If Katja. XXX Yes, we said add the can plus just XXX is million I EUR EUR million, CapEx here, working capital, right?

Thank with question Timna is you. next The from Tanners Wolfe Research.

I joined of late. the make given sure of a products to want at of I to of up I something drag already might ramp support are facilities there out you at just Is touched the small part reasons some not a total don't But and produce the flooding on that that time, ask or relatively and back be those government weaker market. little missing? it you restart? Or I a possible maybe part on. want shipments other kind why anything it's your the same to situation,

And along company wrong same those the then challenges? or also, at that behind is structurally Shoals terms something questions, Muscle there is specific in of all

questions. Yes. you're Thank asking you, new

out work on mentioned Valais in Valais operations. of region to these So producing definitely, impact need obviously, to that but million the produce of then EUR business That we is the XXX includes approximately situation, But products plants. interruption. to that we other mitigation. Part mitigation we that used on the

in and prioritizing that, shifted customers Issiore there is some most the some is shifted just being doing volume need Singen that the are to France. for to we're Germany and are that volumes So

our long-term a and is that exactly in we're sure it need that's just this on Obviously, to is a base organization, bit the the a floods. is but we has and These certainly of as did a it. not and opportunity not are to devastating plant we had There focus restart we that. And rebuild restart not critical the equipment the the and this every Sierre may for equipment in cost plan rodeo, the scramble of piece creating doing make this than run But to we really plant we better that's before a first sadly plant past. solutions. throughout why

would that answer So situation. the be my value to

comments, have? other broadly? we Any Jack Mitigation

Yes.

think you alluded a I Jean-Marc number alluded and there's of mitigations, to which to. So

of latest It's based damage just So million I Timna kind of company work before of gross methodology, EUR will. if based on That approximately point. clear insurance the EUR and be XXX insurance the right? have, of think in terms with abundantly million XXX up impact the that's our of to our clear, estimate industry you really kind to came on that on So which could be assessment we a with mitigations. just

way, then X you easily place. the we that plans the well which XXX very was, we're by if that be in the EUR confident from years highest figure, have the digested, time as were could look at And impact mitigation the level given kind to to liquidity of flood this close in at our as strong position million, of

to have. a team, It's work team. right work. There the to plan? of lot with regarding opportunities is do question of a structurally to work we've anything the your got We've Shoal, second about a the but the constant lot up there. there to tools capacity No, wrong right on the get isn't. It's And is the Muscle bring it we a there lot of and got spending money

lot production there Okay. on of noise, a up a ramping If impact. making mill XXXX, upcoming at also could, election into new tariffs. talk this another is I least that one, that's There's about further potential of in lot a

much in your update Is it imports, on meaningful So wondering displace could the starting you going to the just how us operations? competition if on any U.S. thoughts new imports tariffs impact up for around

Yes.

fact sudden, developments coming the come on it can it in are equivalent and you essentially market, back the capacity. of right? more time a the into So import to -- not is will as a a of the needed. strength all There really well, U.S., the testament a produces the It's of strength lot And the take on the greenfield. that of [indiscernible] ramp-up is of the of like there's capacity recent some actually, turn rated at nearly the

welcome actually we So this development.

Our I And and a more open the the customers I'll And be certainly if quarter we and long next it the as as well about sell repeatedly, medium short could statement, welcome term, in quarter, it. quite that's both in think anything, term. could we produce this more. if

good a in we're think I So place.

the Regarding specific can which by antidumping, mentioned impact the the rules, as be because to ascertain going impact the what at to past, I of impossible is customers approach exemptions tariffs, it's And what's ascertain opportunities, you think circumventing would in bombing to be all and to directed that's tariffs, play predict the typically, you that. there's tariffs blanket carpet that complicated happen. I've what the don't will very to

very to tell. it's So very, difficult

So and react and wait we'll and we'll adapt. see,

Okay.

So go if could I ahead. --

could and have quick could Sorry, excuse just back I didn't the I come recognizing I real me, if topic added. the details add maybe some to of Valais

event. room -- So just have XX up governmental will gotten XXX relative that this million for capped million claim we we more. EUR at to the for have work for some approximately approval And that's and there's do -- potentially EUR from insurance estimate, to of assistance

that. No, I got

could. I more just Sorry, one if follow-up,

assume. for your expect tactically when clarification, revisit to the price the that number number headline at want Just aluminum exclude we going to If metal that guidance come that sure that's impact out or EBITDA I latest suspended? changes. just to for sense just speaking, just is makes in of And make mark QX. least you some to that would reasonable if or just of price, the you'd I you to see market windfall

when to would uncertainty me that to we about big And driver hadn't all the out the had is But about really say to less. less, we I down we have wanted happened. could have be by we to in the to tell make provisional We it's be time your it's in QX spending -- EBITDA, by very think we're a these you we flood, to all we'll be we That's of restart restart. X%. be going we difference restart more, the really sometime October, help idea guided why have we've think if will going clear answer but publish operations likely, a is have figure. question. able it's the we good And when about damages making the operations, it we'll But going why most I'll good sure be really got to when Sierra. that's a of when so about Yes.Jack the

you of days. the inches we feet water on X then for what is plants caked kind deal been hasn't the because in of a grid. and to received, with. X silt, mental Imagine restored got under yet give the the site modern thick. of to acres and water under Power to a And of just image, That's right? roof, everything couple of damages acres when And transformers

motor, up, to we sure every we'll of a So -- make is bearing and lot there can working is every clean that work cabinet, restart. every electrical then properly

it So that's takes why time.

operations. to but restart properly We have safely an the is our of idea of the magnitude needed time damage,

is question next from The with Peterson Bill JPMorgan.

Thanks taking for Bill Peterson. for the you the on the thanks insights all call. shared and is question This

shipments know, then X% clear, sites, the Switzerland you the last contribution and to revenue. way of of, talked XX months about don't in terms of think for I accounting But I less just sort the site? be is or the some to of On guess, what EBITDA about

But be some were markets said the script, end right? to there finished the did I of think So Bill, those capacity, put precise out idea, we markets. those just rough as weaknesses in And the here. lower activities we given you a we've in give the won't end for

can get So rough means. overall a significant any but sort to not you of earnings it's I our to ballpark, contributor by a think

other other say I'll the will say that likely all thing will of I under scenario, most be that. Yes, thing the XXXX. that Bill, in And restored

you've we inventory So got producing a the think cost we'll impact damaged, repair. that been some some that of has of it it systems, is not to cost for it's as essentially but what need we plant, this And big anything obviously, the of onetime we one, months. equipment some at few year. have plant, the the That's hit have yes, a as but the

a that's us, by we're to EUR year, from then end So normal. behind -- standpoint, back to the once max of number. financial million which XXX all But this back the that's is in

as already against guess we appetite target pushing and how think you're here? to leverage debt we should net I How end. buybacks Yes, you cut an cash target okay. well I free about should guess flow net from have think then of to guidance the And kind buybacks up about the or the higher given do exceed this on be as hold?

Yes.

a really question. good it's So

our we're mean, I with So look, capital structure. comfortable

is comfortable at leverage a Our level.

intra-year corresponding between a and leverage, won't goal by versus situation. the still Our to maintain Valais aim in is leverage with about the X.Xx. talking And cash if guidance, revised to too we buyback So to fluctuations we're X.X be bothered now generation and right?

way the So cash sort Bill, million, the think a really in looking nature, at we're Valais EUR flow event, to impact. it's over we're significant still flood XXX on onetime track free it, is generate And right? excluding I that of

strong, XXX as I So mentioned, EUR our very million. liquidity is close to

from digest impact doesn't we event. we returns. easily really change flooding It So at shareholder can the it look the how

So aiming cash the a share program. year to flow and free to portion large we're X-year of our committed return to buybacks, still we're this

next Corinne with Blanchard The you. from Bank. Thank Deutsche is question

us you can bridge to of The EUR the So the XXXX try EBITDA. you maintained question, million help first XXX EBITDA?

next million be you trying reach for to items Just and XXX in that key do the get would whatever to what EUR bucket or would key us from understand year? 'XX

Good morning Corinne.

what said the rephrase I'll first So question. in I

EUR million flexibility XX next just latitude. and So bit million than XXX to us a more call a million of little XXX bridge it to give to year

we're and another the to digested are normal Sierre anticipate not nearly mentioned, X in I us is storm for that behind do and us Muscle there. puts ice as down operations essentially event snowstorm a back Shoal one, We number So that weeks.

So It's running. then you've a going to few center be from just now. the that's starting in weeks got to Neuf-Brisach going up recycle be and

to one. very ability feel about this comfortable we So deliver our on

of we've full that's volume year, to And next impact year Vision contractual Jack has more That's better two got definition. be a factors. going to next One there's we've alluded number also calls on times have is by as contractual in cost will year. And that terms. got past Aerospace, 'XX also a savings, contractual, and finally, there's then

around So these excess addition, better we're in And is XXX or spending a going is capital have is XXX plant the the million, expenditures to performance of well to improve of the addition in productivity the paying we're all let's in as of say. out. there million Muscle Shoals,

have most back. also some European come we likely And

can Europeans there's as And one views years the Europe instance, at different been the in to need have pre-COVID some change point, we will But -- that's the mentioned, that So cars. markets it's been been we X about. for their have -- now automotive levels. below

be to bounce some also of will some a at going which volume benefit that's back So us. point, kind

Great.

it? those I would if in move sorry, the little to if you towards the markets, late. a so maybe those markets? and remain mentioned Or do exit your point you you maybe some second question markets your joined Do at vision And remain call weak. industry they yard packaging, can bit But specialty auto capacity and

suffering times, automotive more have taking the No, as There market diversified into that But always into that's actually we a in a you're obviously, many subtle don't you of asset. markets, view bit. one exiting. is diversification Europe. at when shift is think We place an

are full towards more electric today And to markets. That's contributive the one way is for not that be investments and have a instance, niches provide timing thing. the we've we work communicated us, that's markets very for material. time to fundamentally, specialties battery good we Lotte but to fortunate, have think mix around to our use do markets can we focus that's the remunerative. we're why, battery just making for on stock with that good more improve But we and Now assets product believe

constant We specialty all the year. that's portfolio. So we're that a And do shaping a time, every time better over work.

a no, stronger. just and because X not we question. make moment, plan market that's we mean, we to plants to satisfactory. year, we everything we further. Germany, don't So were try Last But in I extrusion have, that the exit said, like at exited legitimate But very and sold these it the

Benchmark Instructions] question is from with [Operator Company. The The Josh next Sullivan

whatever pull scenarios call, I for the aerospace. AXXX mentioned are aerospace way you about next? is earlier in How the It think system. year are you slowdown and new said year assumption? sounds it's thinking Maybe like you this Jean-Marc, this leaning what through rate long-term working still you there its the build for towards

Yes.

given I were an that realizing ramp-up suppliers and takes that be will more OEMs many in more there they And cautious, we build bit And little many, here So parts pains. we're a mode, continue the publishing, little bit guess. cautious or what than be some the to to there, fact still many many, aircraft. growing a it are

more up. So just are we that would clear. likely upside able look factor how right? a than and as we in it. very I chain, supplier not at to to I at upside, very want downside the make possible limiting supply ramp terms in dependable it We're But or more is look of a

guess less that are put the I mean, some are I as be that. like you dependable dynamic? Yes. towards a might there's perspective suppliers that dependable seeing more paced suppliers yourself

bit, little a guess yes. I

by supply I Our growth the guess. weakest constrained chain, the is in link

have on the a your of wide-bodies to looking then ahead, on really narrow versus more perspective when market And kind body? what's start of pull

seems come back. with starting to to the it seems seeing It And like shared that back. with the come are OEMs. perspective they're we're like us Yes, in they're starting that

narrow-bodies to gap closing news back good were with wide-bodies that's So us. post-COVID vengeance lagging, the now. coming and is a and ones were The that

And any that to within look there defense Got for market demand impact is products like? is then the And the then from it. TID, what flood?

Okay.

the bit produced a in of U.S. we Ravenswood. out defense, on So defense of quite

impacted. not that's So

We little we've bit a a have of factor chain constraining the the that of market. in capacity allowing defense these of fact that Issiore. for produce production the got has not some out backup ability open Issiore. are Quite a that Sierra bit produce And some of given are producing we supply some to in is because Aero the the that to [indiscernible] parts with us in

So down, instance. of will bring that mitigation for that's part the EUR million that XXX

everything of this sure some And need. do to event and not able Valais. think customers, in they can mean will been do year, we we -- the expect to for though they continuity at most with not we've to very have at through mind impacted. situation much customers, stands we of that moment, are painful do so that what our deliver we most be even able in And We the we I the the make

Thank questions. you. have further We no currently

So to remarks. Jean-Marc I'll for closing hand back

call today. Well, you thank on the being much very for

overcoming come capable we're a was I rough I energized. of proud going see, can the and are fully I'm of week, teams of you this last from visit patch bit Valais back As visiting very the them. little them. through a actually

Thank our thank you look I you as progress Goodbye. on very forward soon much, you. to possible. updating as So and

Thank for you, Jean-Marc. This concludes today's call. joining. Thank you all

disconnect now may You your lines.