Crown Holdings net sales rise by 12% in Q1
Crown Holdings saw its net sales increase by 12% in the first quarter of 2021, up to $3,078million from $2,757million in the first quarter of 2020.
Income from operations was $384 million in the first quarter compared to $246 million in the first quarter of 2020.
Segment income was $433 million in the first quarter compared to $298 million in the prior year first quarter primarily due to increased sales unit volumes and $11 million of favourable currency translation.
Commenting on the quarter, Timothy J. Donahue, President and Chief Executive Officer, said: “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.
“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 the Company announced an agreement to sell its European Tinplate business, which is comprised of 44 manufacturing facilities in Europe, the Middle East and Africa that produce food cans and ends, aerosol cans, metal closures and promotional packaging for various consumer brands.
“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.
“To meet accelerating demand for beverage cans, which now account for approximately 75% of our income from operations, the Company is implementing several capacity expansion projects globally, which include both the construction of new plants and the addition of production lines to existing facilities.
“Between 2020 and the end of 2022, we expect to add 15 billion units of annual capacity to the 2019 base of 70 billion units. During 2021, we will be commercialising approximately 6 billion units of annual capacity with projects including a new, two-line facility in Bowling Green, Kentucky and a new one-line plant in Vung Tau, Vietnam as well as additional production lines in Olympia, Washington and Rio Verde, Brazil.”
For the full report on Crown Holdings’ 2021 first quarter results, visit the company’s website.