Crown Holdings, Inc. Reports 4Q 2016 Results

Crown Holdings, Inc. announced its financial results for the fourth quarter and year ended Dec. 31, 2016.
 
Net sales in the fourth quarter were $1,923 million compared to $2,027 million in the fourth quarter of 2015, reflecting $77 million of unfavorable currency translation in 2016 compared to 2015 and the pass through of lower raw material costs.
 
The company reported earnings per share $0.47 for the quarter, and $3.56 full year versus $2.82 in 2015. Adjusted earnings per share $0.71 was for the quarter, and $3.93 full year versus $3.59 in 2015.
 
Cash from operations was $930 million, while adjusted free cash flow $479 million.
 
Income from operations was $192 million in the fourth quarter compared to $201 million in the fourth quarter of 2015. Segment income improved to $236 million in the quarter compared to $234 million in 2015.
 
“We are pleased to report another solid quarter and strong year for Crown,” Timothy J. Donahue, president and CEO, said. “Fourth quarter operating results were in line with our expectations, and we exceeded our free cash flow projections due to another quarter of excellent working capital performance. Global beverage can volumes increased 3% for the full year, and in the quarter were level to the prior year as strong performances in the US, Brazil and Asia offset softness in Saudi Arabia.
 
“Our new beverage can plant in Monterrey, Mexico and the second production line at the Osmaniye, Turkey facility began commercial production in the fourth quarter of 2016,” he added. “The first beverage can line at the Nichols, NY can plant was commissioned and began commercial shipments in late January of this year and will be followed by completion of the second line in April. In the second quarter, we will also complete the conversion of our Custines, France beverage can facility from steel to aluminum with the start-up of the second high speed line and expand capacity at our beverage can plant in Colombia. In addition to these previously announced projects, we are also constructing a new beverage can facility in Jakarta, Indonesia, our first in that country, that is scheduled to begin commercial production in the third quarter of this year to serve the growing local market, adding a second line at our beverage can plant in Danang, Vietnam that is also expected to begin production in the third quarter, and constructing a new beverage can plant in Yangon, Myanmar and a new glass bottle facility in Chihuahua, Mexico, both scheduled for start-up in the first half of 2018.”
 
Full Year Results
 
Net sales for the full year were $8,284 million compared to $8,762 million in 2015, and included $277 million of unfavorable currency translation in 2016 compared to 2015 and the pass through of lower raw material costs.
 
Income from operations improved to $1,021 million compared to $927 million in 2015. Segment income improved to $1,078 million compared to $1,026 million in 2015, and included $39 million of unfavorable currency translation.
 
“Looking back, the last three years have been very productive,” Donahue concluded. “We acquired and integrated two exceptional packaging companies, Mivisa and Empaque, and we continued to expand our global beverage platform allowing us to more than offset the currency headwinds faced by many US multinationals. Adjusted diluted earnings per share increased to $3.93 in 2016 from $2.99 in 2013 despite more than $0.70 per share of currency headwinds over the three-year period. We generated $1.7 billion of adjusted free cash flow over this period, allowing us to delever and begin the process of returning significant cash to our shareholders.”