Crown announces financial results for Q2
Crown Holdings, Inc. announced its financial results for the second quarter ended June 30, 2022.
Net sales in the second quarter were $3,510 million compared to $2,856 million in the second quarter of 2021 reflecting increased beverage can unit volumes and the pass through of higher raw material costs partially offset by unfavourable foreign currency translation of $104 million.
Income from operations was $466 million in the second quarter compared to $385 million in the second quarter of 2021.
Segment income of $432 million in the second quarter improved by $37 million compared to the $395 million in the prior year second quarter primarily due to improved profitability in the North American tinplate and can-making equipment businesses, recovery of inflation incurred in prior years and increased beverage can unit volumes, partially offset by unfavourable foreign currency translation of $11 million.
- Earnings per share of $2.43 versus $0.95 in 2021
- Global beverage can volumes grew 4%
- Self-made two-piece food cans up 43%
- Global beverage can capacity expansion projects on schedule
- Kiwiplan sale completed for $180 million, after tax gain of $102 million
- Repurchased $600 million in Company shares year to date
Commenting on the quarter, Timothy J. Donahue, President and Chief Executive Officer, said: “The Company performed well during the quarter despite accelerating European energy prices and currency translation headwinds.
“Global beverage can demand continues to be robust, with virtually every region operating at full capacity. Shipment growth during the second quarter was particularly strong in Mexico, the Middle East and Southeast Asia.
“In North America, demand currently exceeds our ability to supply, and we expect to remain in an over-sold position at least through the end of 2023.
“On April 1st, the inflation recovery mechanisms built into our North American beverage can contracts commenced, allowing us to begin to recoup many of the cost increases experienced over the past year.
“As previously noted, the Company is in the process of negotiating pending beverage can contracts in Europe to include more comprehensive raw material and other inflationary pass-through provisions.
“Demand remains strong across most Transit Packaging businesses with overall performance level to the prior year when accounting for currency translation and the sale of the Kiwiplan business.
“The Transit business has initiated an overhead cost reduction program that will begin to yield benefits during the second half of 2022 and throughout 2023.
“Performance across the North American Tinplate and can-making equipment businesses reflects firm demand and the installation of new two-piece food can capacity to plants in Iowa and Pennsylvania during 2021.
“Additional capacity is expected to be commercialised later this year as we complete the construction of a third two-piece food can line at the Owatonna, Minnesota plant.”