Net sales in the third quarter increased to $2,468 million compared to $2,326 million in the third quarter of 2016, reflecting increased global beverage, food and aerosol can volumes, the pass through of higher raw material costs, and $38 million of favorable currency translation.
Income from operations was $347 million in the third quarter of 2017. Segment income improved to $358 million in the quarter over the $333 million in the third quarter of 2016, including a benefit of $5 million from currency translation.
“Performance during the third quarter was solid across all businesses, fueled in part by increased global volumes in beverage cans, food cans and aerosol cans,” said Timothy J. Donahue, president and CEO. “Beverage can shipments were particularly strong in Europe, Latin America and Southeast Asia.”
“Our various global growth projects remain on schedule,” Donahue added. “Earlier this month, we began commercial production on the second beverage can line at our Danang, Vietnam facility. The new beverage can plant in Jakarta, Indonesia, which commenced operations in June, is progressing through the learning curve and our new beverage can plants in Nichols, NY and Monterrey, Mexico are both performing well. A new beverage can facility in Yangon, Myanmar and a glass bottle facility in Chihuahua, Mexico are both scheduled for start-up in the first half of 2018. We also recently announced that we will construct a new beverage can plant in the Valencia region of Spain, expected to commence production during the fourth quarter of 2018, to facilitate the conversion from steel to aluminum beverage cans and serve customers in the growing Spanish market.”
Net sales for the first nine months of 2017 were $6,530 million compared to $6,361 million in the first nine months of 2016, primarily due to increased global beverage, food and aerosol can volumes and the pass through of higher raw material costs, partially offset by $64 million of unfavorable currency translation.
Income from operations was $855 million in the first nine months of 2017. Segment income in the first nine months of 2017 increased to $883 million over the $842 million in the first nine months of 2016, despite $6 million of unfavorable currency translation.
The company currently expects fourth quarter 2017 adjusted diluted earnings per share to be in the range of $0.75 to $0.80 based on current exchange rate levels.
The effective income tax rate for the full year of 2017 is expected to be approximately 26%. Cash provided by operating activities is currently expected to be approximately $875 million and management currently forecasts 2017 capital expenditures of approximately $450 million.
Photo courtesy Flickr user Ken Teegardin