Crown Holdings, a supplier of metal packaging products, has reported net sales of $1.78bn for the first quarter of 2010, compared to $1.68bn for the same quarter previous year.
The increase in net sales was primarily due to increased global sales unit volumes and $79m from foreign currency translation, which offset the pass-through of lower raw material costs.
Net income for the first quarter was $41m or $0.25 per diluted share, compared to $40m or $0.25 per diluted share for the previous year quarter.
Gross profit improved to $250m over the $245m in the 2009 first quarter, reflecting an increase in global sales unit volumes, cost reductions, efficiency improvements and $9m from foreign currency translation, all of which is more than offset inventory repricing gains recognized in the first quarter of 2009 that did not recur in 2010.
During the quarter, the company has announced four expansion projects two in Brazil and one each in China and Vietnam. These are in addition to projects that were underway in Brazil and Thailand, all of which are to meet the growing demand in these emerging markets.
John Conway, chairman and chief executive officer of Crown Holdings, said: Globally, beverage can sales rose 4.5% fueled by continued growth in the emerging markets of Asia and South America as well as initial production from our new plant in Slovakia. At the same time, North American beverage can volume increased 3.9%, outpacing the market on volume gains resulting from changing customer mix.
“Volumes were significantly higher in our aerosols, metal vacuum closures and specialty packaging businesses, all of which we view as leading indicators of recovery in consumer demand. Equally important, volumes in our food can businesses continued their recovery compared to last year and ongoing benefits from cost reductions offset much of the inventory repricing recognized in the prior year first quarter.