Industrial Packaging operating profits in the second quarter of 2019 were $507 million ($515 million excluding special items) compared with $404 million ($421 million excluding special items) in the first quarter of 2019. In North America, earnings increased due to seasonally higher demand for boxes, strong manufacturing performance and favorable input costs. Earnings were negatively impacted by lower export containerboard prices and volumes. Printing Papers operating profits in the second quarter of 2019 were $(33) million ($114 million excluding special items) versus $143 million ($144 million excluding special items) in the first quarter of 2019. Earnings were negatively affected by the net impairment of our India Papers business, included as a special item below. In North America, increased planned maintenance outages were partially offset by improved sales prices and improved manufacturing operations. Click Read More below for additional information.
Crown Holdings, Inc. (NYSE: CCK) (“Crown”) today announced that it will conduct a comprehensive Board-led review of its portfolio and capital allocation/return to ensure that the Company maintains its strong competitive position and its continued stock price outperformance.
“In 2019, Crown and its shareholders have benefitted from our strategic plan with a 75% total shareholder return, far in excess of our peers and most relevant indices,” said Chief Executive Officer Timothy J. Donahue. “Our stock currently trades near an all-time high, with our robust performance driven by the leading market positions of our businesses and our commitment to operational excellence and continuous cost reduction across the entire platform. We continue to invest to meet accelerating global demand for beverage cans as evidenced by an expected increase in beverage can capacity in excess of 10% in 2019 and 2020. In addition, we expect the strong and stable cash flows generated across all of our businesses will enable us to delever to our target range of 3.5x – 4.0x net leverage and return substantial capital to our shareholders. The Company does not plan to pursue acquisitions as part of its capital allocation program.”
“That said, our Board and management team believe there may be substantial opportunities to create further value for Crown shareholders. We have decided to commence a Board-led review of the Company to unlock potential shareholder value, including substantial capital return to our shareholders. We have engaged leading financial, legal, tax and other advisors to assist in this review.”
The Board will also continue its Board refreshment process by adding new independent directors who will participate in the review and assist the Company in the evolution of its strategy and its focus on delivering strong operational and financial performance. In addition, consistent with its longstanding practice, the Board and management team will be engaging with its shareholders as part of this process.
Crown reaffirms the guidance announced on its third quarter earnings call of approximately $725 million in adjusted free cash flow and adjusted diluted earnings of $5.00 – $5.05 per share for the full year 2019 and expected capital investment of approximately $450 million in 2019, and expects at least $500 million of capital investment for 2020.
more at: https://www.crowncork.com/news/press-room/crown-holdings-inc-announces-comprehensive-review-portfolio-and-capital