Crown Holdings Reports 2Q 2023 Results

Crown Holdings, Inc. announced its financial results for the second quarter ended June 30, 2023.

Net sales in the second quarter were $3,109 million compared to $3,510 million in the second quarter of 2022, reflecting higher beverage can volumes in Americas Beverage and favorable foreign currency translation of $11 million, offset by the pass through of $288 million in lower material costs and lower volumes across most other businesses.

Income from operations was $367 million in the second quarter compared to $466 million in the second quarter of 2022, which included a gain of $113 million for the sale of the Transit Packaging segment’s Kiwiplan business.

Segment income in the second quarter of 2023 was $414 million compared to $432 million in the prior year second quarter as benefits from the contractual recovery of prior years’ inflationary cost increases in European Beverage and cost reduction initiatives in Transit Packaging were offset by lower volumes.

“The company performed well during the second quarter, as strong results in European Beverage and Transit Packaging offset softer than expected beverage can volumes in Asia and sluggish aerosol can demand in North America,” said Timothy J. Donahue, chairman, president and CEO.

“Cumulative inflationary effects and challenging macroeconomic conditions in certain markets continue to adversely impact volumes,” Donahue added. “In North America, we anticipate increased second half beverage can shipment levels as retail promotional activity, while still somewhat limited, is expected for carbonated soft drinks. The benefits from actions taken in 2022 to negotiate more comprehensive raw material and other inflationary pass-through provisions in European Beverage and a significant overhead reduction program initiated in Transit Packaging are expected to continue to yield benefits throughout the remainder of the year.

“Looking ahead, we believe that the beverage can remains the preferred packaging option for customers and consumers alike, in part due to its unmatched sustainability benefits and infinite recyclability,” he concluded. “As we near completion in late 2023 of the multi-year program to profitably expand global beverage can production capacity to support expanded customer requirements, the company expects capital expenditures to be significantly reduced in 2024 and 2025 from this year’s $900 million to approximately $500 million and we plan to use increased cash flow to pay down debt and return capital to shareholders.”

Net income attributable to Crown Holdings in the second quarter was $157 million compared to $295 million in the second quarter of 2022. Reported diluted earnings per share were $1.31 in the second quarter of 2023 compared to $2.43 in 2022 and adjusted diluted earnings per share were $1.68 compared to $2.10 in 2022.

Net sales for the first six months of 2023 were $6,083 million compared to $6,672 million in the first six months of 2022, primarily due to the pass through of $388 million in lower material costs, lower overall net volumes and unfavorable foreign currency translation of $25 million, partially offset by higher beverage can volumes in Americas Beverage.

Income from operations was $636 million in the first half of 2023 compared to $810 million in the first half of 2022, which included a gain of $113 million for the sale of the Transit Packaging segment’s Kiwiplan business.