Packaging company Crown reports Q2 2019 results

Aerosol packaging company Crown Holdings has announced its financial results for the second quarter of 2019, with income from operations of $383 million.

Net sales in Q2 were $3,035 million, compared to $3,046 million in the corresponding quarter last year, reflecting $80 million of unfavourable currently translation offset by increased beverage can volumes, the company noted.

Income of $383 million in the quarter was up from $292 million in Q2 2018.

"Our overall performance during the quarter was generally in line with expectations,” commented president and CEO Timothy Donahue. “Strong results throughout our global beverage can operations offset a disappointing result in our European food can business. Beverage can volume growth was fuelled by notable gains in Brazil, Europe and Southeast Asia, as consumers in both emerging and developed markets continue to show a preference for cans over other packaging options.

“Recently installed beverage can capacity additions, including a third line at the company's existing plant in Phnom Penh, Cambodia, a new one line high-speed plant in Parma, Italy, and a new two line high-speed plant in Valencia, Spain, have helped us meet the continuing expansion in demand. In November 2019, we plan to commence operations at a new beverage can facility in Rio Verde, central Brazil.

"To meet volume requirements in our North American beverage can business, we have begun the construction of a third high-speed line at our Nichols, New York facility which will begin production during the second quarter of 2020. Also to support demand growth and targeted for a first quarter 2020 start-up, we will convert an existing two-piece steel food can production line at our Weston, Ontario plant to produce aluminium beverage cans. Both the Nichols and Weston lines will be capable of producing multiple sizes. The underlying demand supporting these projects underscores that beverage cans are the world's most sustainable and recycled beverage packaging and are increasingly being viewed as the most responsible format."

Net income attributable to Crown for Q2 2019 was $137 million, up from $132 million in the previous year period.

Reported diluted earnings per share were $1.02 in the quarter, up from $0.99 in Q2 2018.

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