Crown Holdings has announced its financial results for the third quarter ended 30 September 2017.
Third Quarter Highlights
Earnings per share $1.32Adjusted earnings per share $1.41$62 million of Q3 share repurchases; $339 million YTDBeverage can growth projects on schedule
Net sales in the third quarter increased to $2,468 million compared to $2,326 million in the third quarter of 2016, reflecting increased global beverage, food and aerosol can volumes, the pass through of higher raw material costs, and $38 million of favorable currency translation.
Income from operations was $347 million in the third quarter of 2017. Segment income improved to $358 million in the quarter over the $333 million in the third quarter of 2016, including a benefit of $5 million from currency translation.
Commenting on the quarter, Timothy J. Donahue, President and Chief Executive Officer, stated, "Performance during the third quarter was solid across all businesses, fueled in part by increased global volumes in beverage cans, food cans and aerosol cans. Beverage can shipments were particularly strong in Europe, Latin America and Southeast Asia. With its many inherent benefits, including being infinitely recyclable, the beverage can continues to become the increasingly preferred package for marketers and consumers around the world and is widely recognized as the most sustainable beverage container.
"Our various global growth projects remain on schedule. Earlier this month, we began commercial production on the second beverage can line at our Danang, Vietnam facility. The new beverage can plant in Jakarta, Indonesia, which commenced operations in June, is progressing through the learning curve and our new beverage can plants in Nichols, New York and Monterrey, Mexico are both performing well.
A new beverage can facility inYangon, Myanmar and a glass bottle facility in Chihuahua, Mexico are both scheduled for start-up in the first half of 2018. We also recently announced that we will construct a new beverage can plant in the Valencia region of Spain, expected to commence production during the fourth quarter of 2018, to facilitate the conversion from steel to aluminum beverage cans and serve customers in the growing Spanish market. We are excited about the opportunity to create meaningful shareholder value through these compelling growth initiatives."
Interest expense was $64 million in the third quarter of 2017 compared to $59 million in 2016 primarily due to an increase in average borrowing rates.
Net income attributable to Crown Holdings in the third quarter was $177 millioncompared to $183 million in the third quarter of 2016. Reported diluted earnings per share were $1.32 in the third quarter of 2017 compared to $1.31 in the 2016 third quarter. Adjusted diluted earnings per share were $1.41 compared to $1.33 in the third quarter of 2016.
Through September 30, the Company repurchased a total of 6.2 million shares of its common stock for $339 million, including 1.1 million shares for $62 million during the third quarter.
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 2017 were $6,530 million compared to $6,361 millionin the first nine months of 2016, primarily due to increased global beverage, food and aerosol can volumes and the pass through of higher raw material costs, partially offset by$64 million of unfavorable currency translation.
Income from operations was $855 million in the first nine months of 2017. Segment income in the first nine months of 2017 increased to $883 million over the $842 million in the first nine months of 2016, despite $6 million of unfavorable currency translation.
Interest expense was $187 million for the first nine months of 2017 compared to $181 million in the same period of 2016 primarily due to an increase in average borrowing rates.
Net income attributable to Crown Holdings for the first nine months of 2017 was $412 million compared to $431 million in the first nine months of 2016. Reported diluted earnings per share for the first nine months of 2017 were $3.02 compared to $3.09 in the same period of last year.Adjusted diluted earnings per share were $3.23 compared to$3.21 in 2016.
