American packaging company Crown has reported net sales of $2.16bn for the second quarter of 2017, compared to $2.14bn for the same period in 2016.
Increase in sales has been attributed to increased global beverage can volumes and pass through of higher raw material costs.
Compared to same period last year, the company net profit has fallen short of $41m. While its net profit for this year is $128m, its last year’s net profit was $169m.
Gross income for the period was $271m, but segment income increased to $297m from $288m compared to same period during last year.
Interest expenses increased from $58m last year to $61m for the present year. The increase has been attributed to increase in average borrowing rates.
Crown Holdings president and CEO Timothy Donahue said: "Our second quarter performance puts us well on our way to a strong 2017, as all businesses delivered solid results. Beverage can volume growth was notable in Europe, Latin America and Southeast Asia.”
"Importantly, our various global growth projects remain on schedule. Both lines at our new beverage can facility in Nichols, New York are commercially operational and are progressing through their learning curve. Our one-line beverage can plant in Monterrey, Mexico, which commenced production in December 2016, is performing well and meeting the rapidly expanding demand for beer in that region.
"We are excited about the continued future opportunities for global beverage can growth. This growth is being fueled by rising per capita incomes, significant investments by our customers in select emerging markets and the increasing preference for cans compared to other packaging substrates by both customers and consumers."
In June, the company started production at its new beverage can plant in Jakarta, Indonesia and also increased its capacity in Columbia.
The company is close to starting operations at a second beverage can line at it Danang facility in Vietnam. It will be completed in this year’s third quarter.
It is also planning a new beverage can plant in Yangon, Myanmar and a glass bottle facility in Chihuahua in Mexico. Both these are plants are scheduled to start operations in the first half of next year.
