02.09.24
Crown Holdings, Inc. announced its financial results for the fourth quarter and full year ended Dec. 31, 2023.
Net sales in the fourth quarter were $2,858 million compared to $3,012 million in the fourth quarter of 2022 reflecting higher beverage can volumes in Americas Beverage and favorable foreign currency translation of $42 million, offset by the pass through of $145 million in lower material costs and lower volumes across most other businesses.
Income from operations was $259 million in the fourth quarter compared to $229 million in the fourth quarter of 2022. Segment income in the fourth quarter of 2023 was $382 million compared to $292 million in the prior year fourth quarter reflecting higher beverage can volumes in Americas Beverage and the contractual recovery of prior years' inflationary cost increases in European Beverage, both more than offsetting the under-absorption of fixed costs.
"Fourth quarter segment income improved by more than 30% over the prior year fueled by margin performance in the Americas Beverage business, which benefited from 5% volume growth in North America and 2% growth in Brazil,” said Timothy J. Donahue, chairman, president and CEO.
During the fourth quarter, the company made the decision to cease operations at its Batesville, MS beverage can plant and Decatur, IL aerosol can plant. Additionally, and as part of a manufacturing modernization program, the company has ceased operations at its beverage can facilities in Ho Chi Minh City, Vietnam and Singapore with capacity relocated to the company's new high-speed plant in Vung Tau, Vietnam. These actions will improve operational efficiencies, utilization rates and fixed cost absorption.
Net income attributable to Crown Holdings in the fourth quarter was $32 million compared to $89 million in the fourth quarter of 2022.
Net sales for 2023 were $12,010 million compared to $12,943 million in 2022, reflecting higher beverage can volumes in Americas Beverage and favorable foreign currency translation of $77 million, offset by the pass through of $720 million in lower material costs and lower overall net volumes.
Income from operations was $1,269 million in 2023, which included $114 million of restructuring charges, compared to $1,336 million in 2022, which included a net restructuring gain of $52 million.
Segment income for the full year of 2023 was $1,546 million versus $1,443 million in the prior year period, reflecting the benefits from higher beverage can volumes in Americas Beverage, the contractual recovery of prior years' inflationary cost increases in European Beverage and cost reduction initiatives in Transit Packaging, partially offset by lower overall net volumes across most other businesses and a $60 million year over year inventory impact of steel repricing in the Other segment.
“The company achieved record adjusted EBITDA with an 8% improvement over the prior year, despite challenging macroeconomic conditions in most markets,” Donahue said. “Operating performance remained strong in 2023, driven by solid results in our three largest businesses: Americas Beverage, European Beverage and Transit Packaging. Both Americas Beverage and Transit Packaging achieved record levels of income in 2023, with each gaining 18% versus prior year.
“European Beverage significantly improved income performance, despite volume softness, primarily through more comprehensive raw material and other inflationary pass-through provisions within contracts. Beverage can volumes in North America advanced 6% during the year with Brazil up 4% while shipments in both Europe and Asia-Pacific continued to be soft reflecting weak consumer demand.”
Net sales in the fourth quarter were $2,858 million compared to $3,012 million in the fourth quarter of 2022 reflecting higher beverage can volumes in Americas Beverage and favorable foreign currency translation of $42 million, offset by the pass through of $145 million in lower material costs and lower volumes across most other businesses.
Income from operations was $259 million in the fourth quarter compared to $229 million in the fourth quarter of 2022. Segment income in the fourth quarter of 2023 was $382 million compared to $292 million in the prior year fourth quarter reflecting higher beverage can volumes in Americas Beverage and the contractual recovery of prior years' inflationary cost increases in European Beverage, both more than offsetting the under-absorption of fixed costs.
"Fourth quarter segment income improved by more than 30% over the prior year fueled by margin performance in the Americas Beverage business, which benefited from 5% volume growth in North America and 2% growth in Brazil,” said Timothy J. Donahue, chairman, president and CEO.
During the fourth quarter, the company made the decision to cease operations at its Batesville, MS beverage can plant and Decatur, IL aerosol can plant. Additionally, and as part of a manufacturing modernization program, the company has ceased operations at its beverage can facilities in Ho Chi Minh City, Vietnam and Singapore with capacity relocated to the company's new high-speed plant in Vung Tau, Vietnam. These actions will improve operational efficiencies, utilization rates and fixed cost absorption.
Net income attributable to Crown Holdings in the fourth quarter was $32 million compared to $89 million in the fourth quarter of 2022.
Net sales for 2023 were $12,010 million compared to $12,943 million in 2022, reflecting higher beverage can volumes in Americas Beverage and favorable foreign currency translation of $77 million, offset by the pass through of $720 million in lower material costs and lower overall net volumes.
Income from operations was $1,269 million in 2023, which included $114 million of restructuring charges, compared to $1,336 million in 2022, which included a net restructuring gain of $52 million.
Segment income for the full year of 2023 was $1,546 million versus $1,443 million in the prior year period, reflecting the benefits from higher beverage can volumes in Americas Beverage, the contractual recovery of prior years' inflationary cost increases in European Beverage and cost reduction initiatives in Transit Packaging, partially offset by lower overall net volumes across most other businesses and a $60 million year over year inventory impact of steel repricing in the Other segment.
“The company achieved record adjusted EBITDA with an 8% improvement over the prior year, despite challenging macroeconomic conditions in most markets,” Donahue said. “Operating performance remained strong in 2023, driven by solid results in our three largest businesses: Americas Beverage, European Beverage and Transit Packaging. Both Americas Beverage and Transit Packaging achieved record levels of income in 2023, with each gaining 18% versus prior year.
“European Beverage significantly improved income performance, despite volume softness, primarily through more comprehensive raw material and other inflationary pass-through provisions within contracts. Beverage can volumes in North America advanced 6% during the year with Brazil up 4% while shipments in both Europe and Asia-Pacific continued to be soft reflecting weak consumer demand.”