Crown Holdings, Inc. Reports 4Q 2018 Results

Crown Holdings, Inc. announced its financial results for the fourth quarter and year ended Dec. 31, 2018.
 
Net sales in the fourth quarter of 2018 were $2,734 million compared to $2,168 million in the fourth quarter of 2017, reflecting the impact of the Signode acquisition, increased beverage can volumes and the pass-through of higher material costs to customers partially offset by $53 million of unfavorable currency translation.
 
Earnings per share were $0.40 for the quarter versus a loss of $0.67 in 2017, with $5.20 full year versus $4.24 in 2017, an improvement of 23%. Full year free cash flow was $636 million, or $4.75 per diluted share.
 
Income from operations was $218 million in the quarter compared to $212 million in the fourth quarter of 2017. Segment income increased to $279 million in the fourth quarter compared to $244 million in the prior year fourth quarter primarily due to the Signode acquisition.
 
“The company’s earnings performance was on plan for both the fourth quarter and full year, adjusted free cash flow exceeded our expectations, and we are reaffirming our cash flow guidance for 2019,” said Timothy J. Donahue, president and CEO. “ Strong global beverage can volume growth of 5% during the quarter, led by robust shipments in Asia Pacific and the United States, combined with firm results in Transit Packaging, offset challenges in other operations.
 
“As expected, European Beverage results in the quarter had a difficult comparison to the prior year due to pre-production and start-up costs associated with the new beverage can plants in Valencia, Spain and Parma, Italy, and volume softness in the Middle East consistent with previous quarters,” added Donahue. “Beverage cans, the world’s most sustainable and recycled beverage packaging, are increasingly recognized as the most responsible form of beverage packaging, and as such are gaining preference among brand owners and consumers alike.”
 
Full Year Results
 
Net sales for the full year of 2018 increased to $11,151 million compared to $8,698 million in 2017 primarily due to the impact of the Signode acquisition, increased beverage can volumes, the pass-through of higher material costs to customers and $134 million of favorable currency translation.
 
Income from operations was $1,096 million in 2018 compared to $1,024 million in the prior year. Segment income increased to $1,328 million over the $1,117 million in 2017, reflecting the Signode acquisition.
 
The company currently expects 2019 adjusted diluted earnings per share to be in the range of $5.20 to $5.40. Adjusted free cash flow is currently expected to be approximately $775 million in 2019 compared to $636 million in 2018.