Crown Holdings, Inc. Reports 1Q 2018 Results

Crown Holdings, Inc. announced its financial results for the first quarter ended March 31, 2018.
 
Earnings per share were $0.67 versus $0.77 in 2017. Adjusted earnings per share were $0.94 versus $0.77 in 2017, excluding intangibles amortization and certain other items in both periods. Global beverage can volumes grew 3% over prior year
 
Net sales in the first quarter were $2,197 million compared to $1,901 million in the first quarter of 2017, reflecting increased beverage can volumes, the pass through of higher material costs to customers, and $121 million of favorable currency translation impact. Income from operations was $221 million in the quarter compared to $225 million in the first quarter of 2017.
 
“We are very pleased with the company’s performance during the first quarter and we are on track for an excellent 2018,” Timothy J. Donahue, president and CEO, stated. “Adjusted earnings per share rose 22% and segment income gained 8% over the prior year, led by strong results across most operations.
 
“Global beverage can volume growth of 3% was fueled by notable gains in Brazil, Southeast Asia and the United States, as consumers in both emerging and developed markets continue to show a preference for cans over other packaging formats,” Donahue pointed out. “To meet this expanding demand, our global beverage can projects remain on schedule. We expect to begin production at the new one-line beverage can plant in Yangon, Myanmar during the second quarter and the new two-line beverage can plant in Valencia, Spain during the fourth quarter. The Valencia plant will begin our conversion from steel to aluminum for beverage cans in the growing Spanish market. We will also construct a third beverage can line at the company’s existing plant in Phnom Penh, Cambodia to start production during the fourth quarter. Additionally, in January 2018, ahead of schedule, the new glass facility in Chihuahua, Mexico commenced operations to serve the growing beer market in the northern part of the country.”
 
“On April 3, 2018, Crown completed the acquisition of Signode Industrial Group for cash consideration of $3.9 billion,” Donahue continued. “Signode’s products supply critical in-transit protection to high value, high volume goods across a number of end-markets, including food and beverage, agriculture, corrugated, metals and construction among others. We welcome the 7,000 Signode employees to the Crown organization.”
 
The company currently expects second quarter and full year 2018 adjusted diluted earnings to be in the ranges of $1.55 to $1.65 and $5.35 to $5.55 per share, respectively. Adjusted free cash flow is currently expected to be approximately $625 million for 2018 and $775 million for 2019.