Crown Holdings, Inc. announced its financial results for the first quarter ended 31 March, 2023.

Net sales in the first quarter were $2,974 million compared to $3,162 million in the first quarter of 2022 reflecting higher beverage can volumes in Americas Beverage, offset by lower volumes across most other businesses, the pass through of approximately $100 million in lower steel and aluminium costs and unfavourable foreign currency translation of $36 million.

Income from operations was $269 million in the first quarter compared to $344 million in the first quarter of 2022. 

Segment income in the first quarter of 2023 was $320 million compared to $383 million in the prior year first quarter as benefits from the contractual recovery of prior years’ inflationary cost increases in European Beverage and cost reduction initiatives in Transit Packaging were offset by $60 million of year over year inventory impact of steel repricing in the Other segment and lower volumes.

Commenting on the quarter, Timothy J. Donahue, Chairman, President and Chief Executive Officer, said: “Operating results for the Company during the first quarter exceeded our earlier estimates as better than anticipated results in European Beverage and Transit Packaging more than offset softer than expected overall volumes. 

“The benefits from actions taken in 2022 to negotiate more comprehensive raw material and other inflationary pass-through provisions in European Beverage and a significant overhead reduction program initiated in Transit Packaging were clearly visible in the first quarter and will continue to yield benefits throughout the balance of the year.

“Volumes in Americas Beverage were up 6% during the quarter with North America up 4%, despite lighter than expected consumer promotional activity to date. On April 1, the inflation-recovery mechanisms built into our North American beverage can contracts commenced, allowing us to begin to recover cost increases experienced during the past year.

“Our strategy from 2019 has been to responsibly deploy capital into our global beverage can operations to profitably expand production capacity in support of growing customer demand. As we near completion of the multi-year beverage can expansion program, we will remain keenly focused on supporting customers’ needs from our global platform and will use expected increasing cash flow to pay down debt and return capital to shareholders. 

“In the near term, consumer demand may continue to be impacted by inflationary pressures; however, we believe the beverage can remains the preferred package for new product launches with unmatched sustainability benefits.”

Interest expense was $102 million in the first quarter of 2023 compared to $54 million in the first quarter of 2022 reflecting higher outstanding debt and higher interest rates.

Net income attributable to Crown Holdings in the first quarter was $102 million compared to $216 million in the first quarter of 2022. Reported diluted earnings per share were $0.85 in the first quarter of 2023 compared to $1.74 in 2022. Adjusted diluted earnings per share were $1.20 compared to $2.01 in 2022 and compared to the quarterly guidance range of $1.00 to $1.10.

In the first quarter of 2023, the Company received an $83 million distribution from its European tinplate equity interest, Eviosys, bringing cumulative distributions to $116 million since the Company sold the business in August 2021.