07.23.18
Crown Holdings, Inc. announced its financial results for the second quarter ended June 30, 2018.
Net sales in the second quarter were $3,046 million compared to $2,161 million in the second quarter of 2017, reflecting the impact of the Signode acquisition, an increase in beverage can volumes, the pass through of higher material costs to customers and $77 million of favorable currency translation.
Income from operations was $292 million in the quarter compared to $259 million in the second quarter of 2017. Segment income increased to $389 million in the second quarter compared to $295 million in the prior year second quarter primarily due to the Signode acquisition.
“We performed well in the second quarter,” said Timothy J. Donahue, president and CEO of Crown Holdings. “We saw solid gains in global beverage can shipments and excellent operating results in our European Food and newly-acquired Transit Packaging businesses. Global beverage can volume growth of over 4% was propelled by strong demand in Brazil, North America and Southeast Asia. This strong operational performance was somewhat offset by macroeconomic headwinds from elevated freight costs in North America and foreign currency losses in Brazil due to the strength of the US dollar. We have revised our full year outlook with the expectation that elevated freight costs and the strength of the dollar will continue for the remainder of the year.”
“To meet the continually expanding demand for beverage cans, our global growth projects remain on schedule. We began production at a new one-line beverage can plant in Yangon, Myanmar earlier this month. The two-line beverage can plant in Valencia, Spain will commence operations during the fourth quarter. We are also constructing a third beverage can line at the Company’s existing plant in Phnom Penh, Cambodia to start production during the fourth quarter.”
Net income attributable to Crown Holdings in the second quarter was $132 million compared to $128 million in the second quarter of 2017. Reported diluted earnings per share were $0.99 in the second quarter of 2018 compared to $0.94 in 2017. Adjusted diluted earnings per share increased to $1.55 over the $1.17 in 2017.
Six Month Results
Net sales for the first six months of 2018 increased to $5,243 million compared to $4,062 million in the first six months of 2017, primarily due to the impact of the Signode acquisition, increased beverage can volumes, the pass through of higher material costs to customers and $198 million of favorable currency translation.
Income from operations was $513 million in the first half of 2018 compared to $484 million in the first half of 2017. Segment income in the first half of 2018 increased to $634 million over the $521 million in the prior year period reflecting the Signode acquisition and increased beverage can volumes.
Net income attributable to Crown Holdings in the first six months of 2018 was $222 million compared to $235 million in the first six months of 2017. Reported diluted earnings per share were $1.66 compared to $1.71 in 2017. Adjusted diluted earnings per share increased to $2.49 over the $1.94 in 2017.
Net sales in the second quarter were $3,046 million compared to $2,161 million in the second quarter of 2017, reflecting the impact of the Signode acquisition, an increase in beverage can volumes, the pass through of higher material costs to customers and $77 million of favorable currency translation.
Income from operations was $292 million in the quarter compared to $259 million in the second quarter of 2017. Segment income increased to $389 million in the second quarter compared to $295 million in the prior year second quarter primarily due to the Signode acquisition.
“We performed well in the second quarter,” said Timothy J. Donahue, president and CEO of Crown Holdings. “We saw solid gains in global beverage can shipments and excellent operating results in our European Food and newly-acquired Transit Packaging businesses. Global beverage can volume growth of over 4% was propelled by strong demand in Brazil, North America and Southeast Asia. This strong operational performance was somewhat offset by macroeconomic headwinds from elevated freight costs in North America and foreign currency losses in Brazil due to the strength of the US dollar. We have revised our full year outlook with the expectation that elevated freight costs and the strength of the dollar will continue for the remainder of the year.”
“To meet the continually expanding demand for beverage cans, our global growth projects remain on schedule. We began production at a new one-line beverage can plant in Yangon, Myanmar earlier this month. The two-line beverage can plant in Valencia, Spain will commence operations during the fourth quarter. We are also constructing a third beverage can line at the Company’s existing plant in Phnom Penh, Cambodia to start production during the fourth quarter.”
Net income attributable to Crown Holdings in the second quarter was $132 million compared to $128 million in the second quarter of 2017. Reported diluted earnings per share were $0.99 in the second quarter of 2018 compared to $0.94 in 2017. Adjusted diluted earnings per share increased to $1.55 over the $1.17 in 2017.
Six Month Results
Net sales for the first six months of 2018 increased to $5,243 million compared to $4,062 million in the first six months of 2017, primarily due to the impact of the Signode acquisition, increased beverage can volumes, the pass through of higher material costs to customers and $198 million of favorable currency translation.
Income from operations was $513 million in the first half of 2018 compared to $484 million in the first half of 2017. Segment income in the first half of 2018 increased to $634 million over the $521 million in the prior year period reflecting the Signode acquisition and increased beverage can volumes.
Net income attributable to Crown Holdings in the first six months of 2018 was $222 million compared to $235 million in the first six months of 2017. Reported diluted earnings per share were $1.66 compared to $1.71 in 2017. Adjusted diluted earnings per share increased to $2.49 over the $1.94 in 2017.
