Crown Holdings, Inc. Reports 1Q 2016 Results

Crown Holdings, Inc. announced its financial results for the first quarter ended March 31, 2016. Net sales in the first quarter were $1,893 million compared to $1,997 million in the first quarter of 2015, and included $85 million of unfavorable currency translation impact in 2016 compared to 2015.
 
First quarter highlights included earnings per share of $0.57 versus $0.32 in 2015, and adjusted earnings per share $0.69 versus $0.53 in 2015. Constant currency adjusted earnings per share was up 40% over prior year, and constant currency segment income was up 20%,
Global beverage can volumes grew 7%, and beverage can growth projects on schedule.
 
Segment income (a non-GAAP measure) increased to $221 million in the first quarter compared to $192 million in the first quarter of 2015, and included $10 million of unfavorable currency translation impact.
 
“We are very pleased with the company’s performance during the first quarter and are on track for an excellent 2016,” said Timothy J. Donahue, president and CEO. “Adjusted earnings per share rose 30% and segment income increased 15% over the prior year, led by strong results in Americas Beverage, European Beverage and European Food.
 
“Global beverage can unit volume growth of 7% was driven by notable gains in Mexico, Southeast Asia, Southern Europe and the United States, as consumers in both emerging and developed markets continue to prefer cans over other beverage packaging formats. We are on schedule with our capacity expansion plans to meet this increase in demand. We are building our third Cambodian beverage can plant in Phnom Penh and adding can end capability to our Sihanoukville beverage can plant, with commercial production for both projects slated to begin during the second quarter of this year. Our new beverage can plant in Monterrey, Mexico as well as the second production line at our Osmaniye, Turkey facility will begin production during this year’s fourth quarter. In early 2017, we expect to start up our Nichols, New York beverage can plant, which will be focused primarily on bolstering our specialty can presence in North America.”
 
Net income attributable to Crown Holdings in the first quarter was $79 million compared to $44 million in the first quarter of 2015. Reported diluted earnings per share were $0.57 in the first quarter of 2016 compared to $0.32 in 2015. Adjusted diluted earnings per share increased to $0.69 over the $0.53 in 2015 and included $0.05 per share of unfavorable currency translation impact.