Crown Holdings has announced its financial results for the third quarter ended on 30 September 2018.
Image: Crown has reported increased net sales in third quarter of 2018. Photo: courtesy of Thiago Miqueias / FreeImages.
Net sales in the third quarter were $3,174 million compared to $2,468 million in the third quarter of 2017 reflecting the impact of the Signode acquisition, an increase in beverage can volumes and the pass through of higher material costs to customers.
Income from operations was $365 million in the quarter compared to $328 million in the third quarter of 2017. Segment income increased to $415 million in the third quarter compared to $352 million in the prior year third quarter primarily due to the Signode acquisition.
Crown Holdings president and CEO Timothy Donahue said: “The Company’s performance was solid, and we remain on plan for the remainder of the year. Growth in our global beverage can businesses continued to be robust, offsetting soft European food can volumes reflecting the extremely challenging weather conditions which resulted in poor harvest yields.
“Growth in beverage cans is underpinned by the can’s increasing popularity among customers and consumers due to its many inherent benefits, including being the world’s most sustainable form of beverage packaging.”
“Equally important, our global growth projects remain on schedule. We commenced production in July at a new one-line beverage can plant in Yangon, Myanmar.
The first line of the beverage can plant in Valencia, Spain began operations in October, with the second line to begin in December. We will also start up a third beverage can line at the Company’s existing plant in Phnom Penh, Cambodia in November.
“We continue to expect the combined results of our business portfolio will generate significant cash this year and next which will be used, as planned, to reduce the floating rate portion of our debt.”
Interest expense was $105 million in the third quarter of 2018 compared to $64 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 third quarter was $164 million compared to $177 million in the third quarter of 2017. Reported diluted earnings per share were $1.23 in the third quarter of 2018 compared to $1.32 in 2017. Adjusted diluted earnings per share increased to $1.71 over the $1.46 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 nine months of 2018 increased to $8,417 million compared to $6,530 million in the first nine 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 $187 million of favorable currency translation.
Income from operations was $878 million in the first nine months of 2018 compared to $812 million in the prior year period. Segment income for the nine months increased to $1,049 million over the $873 million in 2017 reflecting the Signode acquisition.
Interest expense was $282 million for the first nine months of 2018 compared to $187 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 nine months of 2018 was $386 million compared to $412 million in the first nine months of 2017. Reported diluted earnings per share were $2.88 compared to $3.02 in 2017. Adjusted diluted earnings per share increased to $4.20 over the $3.39 in 2017.
Source: Company Press Release