CROWN HOLDING MAINTAINS ITS STRENGTH

THE AMERICAN CROWN HOLDING REMAINS STRONG DESPITE LAST YEAR’S STOCK MARKET DECLINE

The American Crown Holdings, settled since 2018 in Parc Sagunt, gave up 3.12 billion on the stock market last year. Which translates into a difficult year for Crown Holdings, with a negative performance in the stock market as its shares fell 25.68% compared to a 10.40% rise in 2021. This reduction of 3.21 billion euros had an impact on the company’s capitalization, placing it between Redeia and IAG in the Ibex 35.

The multinational company presided and directed by Timothy J. Donahue accused the strength of the dollar and the economic slowdown on its shares, despite the fact that its latest results – up to September – showed an increase of 19.08% in net sales compared to the first nine months of the previous year, up to 9,162 million euros at the exchange rate; while net profit rose by 44.67% to 589 million.

Donahue further noted that “third-quarter global beverage can shipments exceeded the prior year’s third quarter by 6%, led by solid shipments in Brazil, Mexico and Vietnam.” Despite the improvement, this figure did not meet previously estimated expectations. This situation resulted in higher inventory at the end of the quarter. In addition, other factors have put the company under economic pressure for the remainder of 2022, such as inflation, European energy prices and interest rates, among others.

The short-term outlook is not the most encouraging, however, the company is focusing on its long-term activities in order to improve its success. “While the near-term environment is expected to remain challenging, we continue to focus on activities that will enhance our long-term success and remain confident in our 2023 outlook. Our global beverage can expansion projects remain on track; while we are adding additional production lines to existing plants in Phnom Penh (Cambodia), Agoncillo (Spain) and Parma (Italy),” he remarked.

Specifically, the plant in the Riojan municipality of Agoncillo will build a new high-speed aluminum line, whose commercial production is expected to begin during this quarter. From there, it will supply customers in northern Spain.

“Understanding that we cannot control inflation or interest rates, so we have focused on actions to reduce costs for the current environment by reducing headcount and reducing capital spending. In addition, in August we extended our existing credit facility through the same month in 2027. The balance sheet remains strong with no significant maturities until September 2024,” concluded the US company’s chief executive.