Crown Holdings, Inc. announced its financial results for the second quarter ended June 30, 2024.

Net sales in the second quarter were $3,040 million compared to $3,109 million in the second quarter of 2023 reflecting higher global beverage can shipments offset primarily by the pass through of $94 million in lower material costs and unfavourable foreign currency of $13 million.

Income from operations was $379 million in the second quarter compared to $367 million in the second quarter of 2023. Segment income in the second quarter of 2024 was $437 million compared to $414 million in the prior year second quarter driven by improved results in global beverage operations.

Commenting on the quarter, Timothy J. Donahue, Chairman, President and Chief Executive Officer, stated, “The Company performed well during the quarter, led by strong results in each of the global beverage businesses. Benefitting from our broad geographic presence and strategic customer alliances, beverage segment income improved by 21% in the second quarter on a combined global basis. 

“Beverage can shipments improved 6% globally in the second quarter, including 9% in North America. Beverage can shipments in Europe and Latin America were also strong and exceeded longer-term expectations of low-to mid-single digit volume growth.

“Cash generated in our non-beverage businesses combined with tightly managed working capital and lower capital expenditures resulted in the Company delivering cash from operating activities of $343 million and record first half year free cash flow of $178 million. Net leverage ended the quarter at 3.2 times down from 4.0 times a year earlier.

“In June, KPS Capital Partners announced the sale of European metal packaging supplier Eviosys. Crown’s 20% stake in Eviosys is included as part of the agreement with closing of the transaction anticipated later this year.

“With improved earnings, strong free cash flow, and the expected proceeds from the Eviosys sale, we now expect year-end 2024 net leverage to be below 3.0 times. Cash flow is expected to remain strong, allowing us to resume share repurchases while also continuing to delever towards our new long-term net leverage target of 2.5 times.”

Net income attributable to Crown Holdings in the second quarter was $174 million compared to $157 million in the second quarter of 2023. Reported diluted earnings per share were $1.45 in the second quarter of 2024 compared to $1.31 in 2023 and adjusted diluted earnings per share were $1.81 compared to $1.68 in 2023 reflecting higher global beverage can results.

Six Month Results
Net sales for the first six months of 2024 were $5,824 million compared to $6,083 million in the first six months of 2023, reflecting higher global beverage can shipments, offset by the pass through of $224 million in lower material costs and lower volumes in most other businesses.

Income from operations was $624 million in the first half of 2024 compared to $636 million in the first half of 2023. Segment income in the first half of 2024 was $745 million versus $734 million in the prior year period as improved results in global beverage operations offset lower volumes in most other businesses and higher corporate costs.

Net income attributable to Crown Holdings in the first six months of 2024 was $241 million compared to $259 million in the first six months of 2023. Reported diluted earnings per share were $2.01 compared to $2.16 in 2023 and adjusted diluted earnings per share were $2.83 compared to $2.88 in 2023.

Outlook
In light of first half operating results, the Company now projects full-year diluted EPS in the range of $6.00 to $6.25 compared to previous guidance of $5.80 to $6.20. Free cash flow for the year is now expected to be at least $750 million.

Third quarter adjusted earnings per share are expected to be in the range of $1.75 to $1.85.