Crown Holdings reports strong Q1 results

news item image
Crown Holdings' net sales in the first quarter were $3.07 billion (€2.55 billion), compared to $2.75 billion (€2.29 billion) in the same period in 2020.

The company’s president and CEO, Timothy Donahue, said each of the global businesses “executed well both commercially and operationally” in the face of the COVID-19 pandemic.

The figures reflect increased sales unit volumes in all segments and favourable currency translation of $92 million (€76.6 million).

Income from operations was $384 million (€319 million) in Q1 compared to $246 million (€204 million) in the first quarter of 2020. Segment income was $433 million (€360 million) in Q1 compared to $298 million (€248 million) in 2020, primarily due to increased sales unit volumes and $11 million (€9.1 million) of favourable currency translation.

“The company’s performance during the first quarter was excellent, as adjusted earnings per share and segment income grew 62% and 45%, respectively, from prior year results," said Donahue.

“Each of our global businesses executed well both commercially and operationally in the face of the challenges posed by the continuing pandemic.

“Beverage can volumes were strong across all global regions, led by North America, as consumers and customers alike continue to increasingly prefer the infinitely recyclable aluminium can over other packaging options.

“Transit Packaging, having successfully implemented several cost reduction initiatives, exceeded our expectations and is well-positioned for continuing improvement as global manufacturing activity further accelerates.”

On 8 April, Crown agreed to sell its European Tinplate business, which is comprised of 44 manufacturing facilities in Europe, the Middle East, and Africa that produce aerosol cans, food cans and ends, metal closures, and promotional packaging for various consumer brands.

Commenting on the sale, Donahue said: “We are very pleased that the business will have a strong owner in KPS Capital Partners to support future profitable growth and innovation initiatives. Net proceeds from the transaction will be used for debt reduction, beverage can capital projects, and share repurchases over time.”

Net income attributable to Crown Holdings in Q1 was $211 million (€175 million) compared to $88 million (€73 million) in Q1 2020.

Latest News