Crown witnesses strong demand across all product lines
Crown Holdings, Inc. has witnessed strong demand across all product lines with demand for beverage cans being particularly strong.
Zacks Equity Research reports that investments in new plant construction, addition of production lines to existing facilities and strategic acquisitions to make the most of this trend will act as a key catalyst.
There still remains some challenges, though, with increased in raw material and freight costs as well as other supply-chain issues.
Inflated raw material and freight costs, and supply-chain issues remain headwinds.
Backed by strong demand, Crown Holdings expects adjusted earnings per share in 2022 between $7.65 and $7.85. In 2021, Crown reported adjusted earnings per share of $7.66.
By the end of 2023, Crown expects to commercialise new production capacity at new plants in Martinsville, VA , Mesquite, NV, Uberaba, Brazil and Peterborough, the United Kingdom.
Additional production lines are also being installed at the existing plants in Phnom Penh, Cambodia; Monterrey, Mexico and Agoncillo, Spain and Parma, Italy.
Shares of Crown Holdings have fallen 19% in the past year compared with the industry’s decline of 34.7%.