Crown Holdings Reports 4Q 2021 Results

Crown Holdings, Inc. announced its financial results for the fourth quarter ended Dec. 31, 2021.

Crown’s net sales in the fourth quarter were $3,054 million compared to $2,460 million in the fourth quarter of 2020, reflecting the pass through of higher material costs and increased beverage can and transit packaging sales unit volumes. Meanwhile, global beverage can volumes grew 9% in the fourth quarter and for the full year.

Income from operations was $303 million in the fourth quarter compared to $307 million in the fourth quarter of 2020. Segment income was $357 million in the quarter compared to $358 million in the prior year fourth quarter as unfavorable currency translation and higher costs offset sales unit volume increases.

“The company had a solid fourth quarter performance to end an exceptional year in 2021,” Timothy J. Donahue, president and CEO, said. “Global beverage can shipments for the year of more than 79 billion units grew 9% over 2020, with robust expansion in all regions, led by North America, Europe and Mexico. Full year adjusted earnings per share advanced 29%, more than offsetting the dilutive effects of the sale of the European Tinplate business.

“As we look forward in 2022, the company expects to have another outstanding year, with EBITDA estimated to grow more than 12% to approximately $2 billion,” Donahue added. “Beverage can demand remains in excess of supply and in 2022 the company expects to commercialize new production capacity at new plants in Martinsville, VA, and Uberaba, Brazil, as well as with can line additions to plants in Phnom Penh, Cambodia and Monterrey, Mexico.”

In connection with the sale of its European Tinplate business, the company entered into a previously announced transaction to irrevocably transfer its UK pension plan obligations to an insurer in November 2021, resulting in a pension settlement charge of $1.5 billion and elimination of the cash flow and earnings risk associated with the plan.

Full Year Results

Net sales for the full year of 2021 increased to $11,394 million from $9,392 million in the full year of 2020, primarily due to the pass through of higher material costs and increased sales unit volumes.

Income from operations was $1,363 million in 2021 compared to $1,048 million in 2020. Segment income in 2021 was $1,500 million versus $1,240 million in the prior year primarily due to increased sales unit volumes.
Interest expense was $253 million in 2021 compared to $290 million in 2020 primarily due to lower outstanding debt balances.

Net loss attributable to Crown Holdings in 2021 was $560 million compared to net income of $579 million in 2020. Reported loss per share was $4.30 compared to income of $4.30 in 2020. Adjusted diluted earnings per share were $7.66 compared to $5.92 in 2020.