Crown Holdings, Inc. Reports First Quarter 2018 Results

Crown Holdings, Inc. (NYSE: CCK) today announced its financial results for the first quarter ended March 31, 2018.

Highlights
Earnings per share $0.67 versus $0.77 in 2017
Adjusted earnings per share $0.94 versus $0.77 in 2017; excludes intangibles amortization and certain other items in both periods
Global beverage can volumes grew 3% over prior year
Completed acquisition of Signode Industrial Group on April 3

Net sales in the first quarter were $2,197 million compared to $1,901 million in the first quarter of 2017 reflecting increased beverage can volumes, the pass through of higher material costs to customers, and $121 million of favorable currency translation impact.

Income from operations was $221 million in the quarter compared to $225 million in the first quarter of 2017. Segment income increased to $245 million in the first quarter compared to $226 million in the prior year first quarter and included $12 million of favorable currency translation impact. Segment income for 2017 has been restated to reflect new accounting guidance on the presentation of pension and postretirement expense and the Company’s revised policy to exclude intangibles amortization charges from segment income.

Commenting on the quarter, Timothy J. Donahue, President and Chief Executive Officer, stated, “We are very pleased with the Company’s performance during the first quarter and we are on track for an excellent 2018. Adjusted earnings per share rose 22% and segment income gained 8% over the prior year, led by strong results across most operations.

“Global beverage can volume growth of 3% was fueled by notable gains in Brazil, Southeast Asia and the United States, as consumers in both emerging and developed markets continue to show a preference for cans over other packaging formats. To meet this expanding demand, our global beverage can projects remain on schedule. We expect to begin production at the new one-line beverage can plant in Yangon, Myanmar during the second quarter and the new two-line beverage can plant in Valencia, Spain during the fourth quarter. The Valencia plant will begin our conversion from steel to aluminum for beverage cans in the growing Spanish market. We will also construct a third beverage can line at the Company’s existing plant in Phnom Penh, Cambodia to start production during the fourth quarter. Additionally, in January 2018, ahead of schedule, the new glass facility in Chihuahua, Mexico commenced operations to serve the growing beer market in the northern part of the country.

“On April 3, 2018, Crown completed the acquisition of Signode Industrial Group for cash consideration of $3.9 billion. Signode’s products supply critical in-transit protection to high value, high volume goods across a number of end-markets, including food and beverage, agriculture, corrugated, metals and construction among others. Combined with a highly engineered equipment and service offering, Signode’s geographic and product mix will provide a strong platform for value creation. Signode adds a portfolio of premier transit and protective packaging franchises to Crown’s growing metal packaging businesses, further broadening and diversifying the customer base and substantially increasing cash flow. We welcome the 7,000 Signode employees to the Crown organization.”

Interest expense was $74 million in the first quarter of 2018 compared to $62 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 quarter was $90 million compared to $107 million in the first quarter of 2017. Reported diluted earnings per share were $0.67 in the first quarter of 2018 compared to $0.77 in 2017. Adjusted diluted earnings per share increased to $0.94 over the $0.77 in 2017. As noted below, the Company has revised its policy regarding the treatment of intangibles amortization charges in calculating adjusted net income and adjusted earnings per share.
more detail at:  https://www.crowncork.com/news/press-room/crown-holdings-inc-reports-first-quarter-2018-results

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