10.18.18
Crown Holdings, Inc. announced its financial results for the third quarter ended Sept. 30, 2018.
Net sales in the third quarter were $3,174 million compared to $2,468 million in the third quarter of 2017 reflecting the impact of the Signode acquisition, an increase in beverage can volumes and the pass-through of higher material costs to customers.
Income from operations was $365 million in the quarter compared to $328 million in the third quarter of 2017. Segment income increased to $415 million in the third quarter compared to $352 million in the prior year third quarter primarily due to the Signode acquisition.
“The company’s performance was solid, and we remain on plan for the remainder of the year,” Timothy J. Donahue, president and CEO, said. “Growth in our global beverage can businesses continued to be robust, offsetting soft European food can volumes reflecting the extremely challenging weather conditions which resulted in poor harvest yields. Growth in beverage cans is underpinned by the can’s increasing popularity among customers and consumers due to its many inherent benefits, including being the world’s most sustainable form of beverage packaging.
“Equally important, our global growth projects remain on schedule. We commenced production in July at a new one-line beverage can plant in Yangon, Myanmar. The first line of the beverage can plant in Valencia, Spain began operations in October, with the second line to begin in December. We will also start up a third beverage can line at the Company’s existing plant in Phnom Penh, Cambodia in November.
Nine Month Results
Net sales for the first nine months of 2018 increased to $8,417 million compared to $6,530 million in the first nine months of 2017 primarily due to the impact of the Signode acquisition, increased beverage can volumes, the pass-through of higher material costs to customers and $187 million of favorable currency translation.
Income from operations was $878 million in the first nine months of 2018 compared to $812 million in the prior year period. Segment income for the nine months increased to $1,049 million over the $873 million in 2017 reflecting the Signode acquisition.
The adjusted effective income tax rate for the full year of 2018 is expected to be between 25% and 26%. Adjusted free cash flow, as defined below, is currently expected to be approximately $625 million for 2018 and $775 million for 2019, unchanged from prior guidance.
Net sales in the third quarter were $3,174 million compared to $2,468 million in the third quarter of 2017 reflecting the impact of the Signode acquisition, an increase in beverage can volumes and the pass-through of higher material costs to customers.
Income from operations was $365 million in the quarter compared to $328 million in the third quarter of 2017. Segment income increased to $415 million in the third quarter compared to $352 million in the prior year third quarter primarily due to the Signode acquisition.
“The company’s performance was solid, and we remain on plan for the remainder of the year,” Timothy J. Donahue, president and CEO, said. “Growth in our global beverage can businesses continued to be robust, offsetting soft European food can volumes reflecting the extremely challenging weather conditions which resulted in poor harvest yields. Growth in beverage cans is underpinned by the can’s increasing popularity among customers and consumers due to its many inherent benefits, including being the world’s most sustainable form of beverage packaging.
“Equally important, our global growth projects remain on schedule. We commenced production in July at a new one-line beverage can plant in Yangon, Myanmar. The first line of the beverage can plant in Valencia, Spain began operations in October, with the second line to begin in December. We will also start up a third beverage can line at the Company’s existing plant in Phnom Penh, Cambodia in November.
Nine Month Results
Net sales for the first nine months of 2018 increased to $8,417 million compared to $6,530 million in the first nine months of 2017 primarily due to the impact of the Signode acquisition, increased beverage can volumes, the pass-through of higher material costs to customers and $187 million of favorable currency translation.
Income from operations was $878 million in the first nine months of 2018 compared to $812 million in the prior year period. Segment income for the nine months increased to $1,049 million over the $873 million in 2017 reflecting the Signode acquisition.
The adjusted effective income tax rate for the full year of 2018 is expected to be between 25% and 26%. Adjusted free cash flow, as defined below, is currently expected to be approximately $625 million for 2018 and $775 million for 2019, unchanged from prior guidance.