Crown Holdings announced its financial results for the third quarter ended 30 September 2016.
Third Quarter Highlights
Earnings per share $1.31 for the quarter; $3.09 YTD versus $2.35 in 2015Adjusted earnings per share $1.33 for the quarter; $3.21 YTD versus $2.89 in 2015Income from operations up 14% YTD, from $726 million to $829 millionSegment income up 6% YTD, from $792 million to $842 millionBeverage can growth projects on schedule
Net sales in the third quarter were $2,326 million compared to $2,460 million in the third quarter of 2015, reflecting $55 million of unfavorable currency translation in 2016 compared to 2015 and the pass through of lower raw material costs.
Income from operations improved to $315 million in the quarter compared to $281 million in the third quarter of 2015. Segment income improved to $333 million in the quarter compared to $328 million in 2015, and included $9 million of unfavorable currency translation.
Commenting on the quarter,
Timothy J. Donahue, President and Chief Executive Officer, stated, "Performance in the third quarter was solid across most businesses, notably beverage cans where global sales volumes grew 4% during the quarter.
"We are on schedule with our capacity expansion projects to meet continuing growth in beverage can demand. In June, we successfully commenced operations at our third Cambodian beverage can plant in Phnom Penh. Our new beverage can plant in Monterrey, Mexico as well as the second production line at our Osmaniye, Turkey facility are scheduled to begin production during this year's fourth quarter. In early 2017, we expect to start up our Nichols, New York beverage can plant, which will expand our specialty can presence in North America. In Colombia, we have begun a capacity expansion with the added production expected to be available for shipment in the second quarter of 2017.
We will also begin installation of a second high speed aluminum production line at our beverage can plant in Custines, France, which will complete that facility's conversion from steel to aluminum. Commercial start-up of the line is scheduled for April 2017.
"Looking ahead, we continue to see opportunities as we meet growing customer and consumer demand."
Interest expense was $59 million in the third quarter of 2016 compared to $68 million in 2015 primarily due to lower outstanding debt.
Net income attributable to Crown Holdings in the third quarter increased to $183 million over the $141 million in the third quarter of 2015. Reported diluted earnings per share were $1.31 in the third quarter of 2016 compared to $1.01 in the 2015 third quarter. Adjusted diluted earnings per share were $1.33 compared to $1.34 in 2015.
A reconciliation from net income and diluted earnings per share to adjusted net income and adjusted diluted earnings per share is provided below.
Nine Month Results
Net sales for the first nine months of 2016 were $6,361 million compared to $6,735 million in the first nine months of 2015, and included $200 million of unfavorable currency translation in 2016 compared to 2015 and the pass through of lower raw material costs.
Income from operations improved to $829 million compared to $726 million in the first nine months of 2015. Segment income improved to $842 million compared to $792 million in the first nine months of 2015, and included $30 million of unfavorable currency translation.
Interest expense was $181 million for the first nine months of 2016 compared to $202 million in the same period of 2015 primarily due to lower outstanding debt.
Net income attributable to Crown Holdings for the first nine months of 2016 increased to $431 million over the $327 million in the first nine months of 2015. Reported diluted earnings per share for the first nine months of 2016 were $3.09 compared to $2.35 in the same period of last year. Adjusted diluted earnings per share were $3.21 compared to $2.89 in 2015.
