Crown Holdings announced its financial results for the fourth quarter and year ended 31 December 2016.
Highlights
Earnings per share $0.47 for the quarter; $3.56 full year versus $2.82 in 2015Adjusted earnings per share $0.71 for the quarter; $3.93 full year versus$3.59 in 2015Cash from operations $930 million; adjusted free cash flow $479 millionShare repurchase authorization for $1 billion in aggregate through the end of 2019
Fourth Quarter Net sales in the fourth quarter were $1,923 million compared to$2,027 million in the fourth quarter of 2015, reflecting $77 million of unfavorable currency translation in 2016 compared to 2015 and the pass through of lower raw material costs.
Income from operations was $192 million in the quarter compared to $201 millionin the fourth quarter of 2015. Segment income improved to $236 million in the quarter compared to $234 million in 2015. The improvement in segment income compared to the prior year's quarter included benefits from lower corporate costs, offset by $9 million of unfavorable currency translation and lower volumes in Saudi Arabia. Corporate and unallocated costs of $156 million for the full year of 2016 are consistent with the Company's expectations for 2017.
Commenting on the quarter, Timothy J. Donahue, President and Chief Executive Officer, stated, "We are pleased to report another solid quarter and strong year for Crown. Fourth quarter operating results were in line with our expectations, and we exceeded our free cash flow projections due to another quarter of excellent working capital performance. Global beverage can volumes increased three percent for the full year, and in the quarter were level to the prior year as strong performances in the U.S., Brazil and Asia offset softness in Saudi Arabia.
"Our new beverage can plant in Monterrey, Mexico and the second production line at the Osmaniye, Turkey facility began commercial production in the fourth quarter of 2016. The first beverage can line at the Nichols, New York can plant was commissioned and began commercial shipments in late January of this year and will be followed by completion of the second line in April. In the second quarter, we will also complete the conversion of our Custines, France beverage can facility from steel to aluminum with the start-up of the second high speed line and expand capacity at our beverage can plant in Colombia.
In addition to these previously announced projects, we are also constructing a new beverage can facility inJakarta, Indonesia, our first in that country, that is scheduled to begin commercial production in the third quarter of this year to serve the growing local market, adding a second line at our beverage can plant in Danang, Vietnam that is also expected to begin production in the third quarter, and constructing a new beverage can plant in Yangon, Myanmar and a new glass bottle facility in Chihuahua, Mexico, both scheduled for start-up in the first half of 2018."
Interest expense decreased to $62 million in the fourth quarter of 2016 compared to $68 million in 2015 primarily due to lower outstanding debt.
Net income attributable to Crown Holdings in the fourth quarter was $65 millioncompared to $66 million in the fourth quarter of 2015. Reported diluted earnings per share were $0.47 in the fourth quarters of both years. Adjusted diluted earnings per share were $0.71 compared to $0.70 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.
Full Year Results Net sales for the full year were $8,284 million compared to$8,762 million in 2015, and included $277 million of unfavorable currency translation in 2016 compared to 2015 and the pass through of lower raw material costs.
Income from operations improved to $1,021 million compared to $927 million in 2015. Segment income improved to $1,078 million compared to $1,026 million in 2015, and included $39 million of unfavorable currency translation.
Interest expense decreased to $243 million in 2016 compared to $270 million in 2015 primarily due to lower outstanding debt.
Net income attributable to Crown Holdings increased to $496 million in 2016 over the $393 million in 2015. Reported diluted earnings per share in 2016 were $3.56compared to $2.82 last year. Adjusted diluted earnings per share were $3.93compared to $3.59 in 2015.
