Crown Holdings, Inc. Reports Second Quarter 2017 Results

Crown Holdings, Inc. (NYSE: CCK) today announced its financial results for the second quarter ended June 30, 2017.

Second Quarter Highlights

  • Earnings per share $0.94
  • Adjusted earnings per share $1.12
  • $144 million of Q2 share repurchases; $277 million Q2 YTD
  • Beverage can growth projects on schedule

Net sales in the second quarter were $2,161 million compared to $2,142 million in the second quarter of 2016, reflecting increased global beverage can volumes and the pass through of higher raw material costs, partially offset by $48 million of unfavorable currency translation.

Income from operations was $271 million in the second quarter of 2017. Segment income increased to $297 million in the quarter over the $288 million in the second quarter of 2016, despite $5 million of unfavorable currency translation.

Commenting on the quarter, Timothy J. Donahue, President and Chief Executive Officer, stated, “Our second quarter performance puts us well on our way to a strong 2017, as all businesses delivered solid results. Beverage can volume growth was notable in Europe, Latin America and Southeast Asia.

“Importantly, our various global growth projects remain on schedule. Both lines at our new beverage can facility in Nichols, New York are commercially operational and are progressing through their learning curve. Our one-line beverage can plant in Monterrey, Mexico, which commenced production in December 2016, is performing well and meeting the rapidly expanding demand for beer in that region. During June, we began commercial production at our new beverage can plant in Jakarta, Indonesia and completed our capacity expansion project in Colombia. We are also on track to commence commercial production on the second beverage can line at our Danang, Vietnam facility during the third quarter. A new beverage can plant in Yangon, Myanmar and a glass bottle facility in Chihuahua, Mexico are both scheduled for start-up in the first half of 2018.

“We are excited about the continued future opportunities for global beverage can growth. This growth is being fueled by rising per capita incomes, significant investments by our customers in select emerging markets and the increasing preference for cans compared to other packaging substrates by both customers and consumers.”

Interest expense was $61 million in the second quarter of 2017 compared to $58 million in 2016 primarily due to an increase in average borrowing rates.

Net income attributable to Crown Holdings in the second quarter was $128 million compared to $169 million in the second quarter of 2016. Reported diluted earnings per share were $0.94 in the second quarter of 2017 compared to $1.21 in the 2016 second quarter. Adjusted diluted earnings per share were $1.12 compared to $1.19 in 2016.

Through June 30, the Company repurchased a total of 5.1 million shares of its common stock for $277 million. Subsequent to the end of the second quarter, the Company repurchased an additional 0.3 million shares for $19 million.

read more/source: https://www.crowncork.com/news/press-room/crown-holdings-inc-reports-second-quarter-2017-results

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