Crown Holdings, an American company that makes metal beverage and food cans, has reported a net income of $147m for the second quarter ended 30 June 2018, compared to $148m for the same period in 2017.
Image: Crown’s easy-open end manufacturing facility inNagykörös plant, Hungary. Photo: courtesy of Crown Holdings, Inc.
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.
Crown president and CEO Timothy Donahue said: “We performed well in the second quarter. 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 U.S. 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.”
Interest expense was $103 million in the second quarter of 2018 compared to $61 million in 2017 primarily due to higher outstanding debt from borrowings incurred to finance the Signode acquisition.
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.
A reconciliation from net income and diluted earnings per share to adjusted net income and adjusted diluted earnings per share is provided below.
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.
Interest expense was $177 million for the first six months of 2018 compared to $123 million in 2017 primarily due to higher outstanding debt from borrowings incurred to finance the Signode acquisition.
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.
Crown Holdings, through its subsidiaries, is a leading global supplier of rigid packaging products to consumer marketing companies, as well as transit and protective packaging products, equipment and services to a broad range of end markets. World headquarters are located in Philadelphia, Pennsylvania.
Source: Company Press Release