Crown Holdings, Inc. announced its financial results for the second quarter ended June 30, 2020.
Net sales in the second quarter were $2,689 million compared to $3,035 million in the second quarter of 2019, primarily reflecting the impact of the coronavirus pandemic on sales unit volumes, the pass-through of lower material costs and $73 million of unfavorable currency translation.
Income from operations was $275 million in the quarter compared to $383 million in the second quarter of 2019. Segment income was $322 million in the second quarter compared to $386 million in the prior year second quarter primarily due to lower sales unit volumes, pandemic-related inefficiencies and $11 million of unfavorable currency translation.
“The company's overall performance during the second quarter was solid in the face of the ongoing global coronavirus pandemic,” said Timothy J. Donahue, president and CEO. "Our global food can businesses recorded strong shipments in both Europe and North America. Although global beverage can shipments decreased 5% during the quarter, North America was propelled by double-digit gains.
“Disappointing results in European Beverage stemmed from soft volumes, particularly in southern Europe, where a steep drop in tourism due to the pandemic significantly curtailed on-premise consumption,” he added. The global slowdown in manufacturing activity in several end markets adversely impacted results in Transit Packaging.
"Beverage cans continue to gain preference among both brand owners and consumers, as reflected by increasing offerings of new beverage products – both non-alcoholic and alcoholic – being introduced in cans versus alternative packaging formats. In addition, beverage cans are the world's most sustainable and recycled beverage packaging and are increasingly being viewed as its most responsible format,” he concluded. “To meet this rising demand, the company continues to implement a number of beverage can capacity expansion projects.”
Six Month Results
Net sales for the first six months of 2020 were $5,446 million compared to $5,790 million in the first six months of 2019, primarily due to the impact of the coronavirus pandemic on sales unit volumes, the pass-through of lower material costs and $113 million of unfavorable currency translation.
Income from operations was $521 million in the first half of 2020 compared to $645 million in the first half of 2019.
