CROWN HOLDINGS ANNOUNCES STRONG FIRST QUARTER 2022 RESULTS

Crown Holdings, a multinational company, has announced its first quarter financial results through March 31, 2022. Net sales in the first quarter were US$3,162 million compared to US$2,564 million in the first quarter of 2021, reflecting higher beverage sales unit volumes and the pass-through of higher material costs.

Income from operations was US$344 million in the first quarter compared to US$327 million in the first quarter of 2021. Specifically, segment revenues were US$383 million in the first quarter compared to US$369 million for the prior year, mainly due to improved profitability in North American tinplate and can.

Timothy J. Donahue, president and chief executive officer, said, “The company’s overall results for the first quarter were as expected. Strong performances in the North American canmaking equipment and tinplate businesses, combined with solid beverage results”.

On the other hand, can shipments in Vietnam offset significant inflationary pressures in Europe and North America and transitory market weakness in Brazil, began the inflation recovery mechanisms built into our North American beverage can contracts, which will allow us to begin to recover many of the cost increases experienced during the past year.

The company is also in the process of negotiating pending beverage can contracts in Europe to include more integral raw materials and other inflation pass-through provisions. As expected, the company’s transit packaging business experienced an inflationary cost/price contraction during the first quarter, the recovery of which we expect to begin in the second quarter.

“To meet increasing global growth requirements, the company will market significant new beverage can capacity through the end of 2023 with several projects under construction, including new plants in Martinsville, Virginia, Mesquite, Nevada, Uberaba, Brazil and Peterborough, United Kingdom. Additional production lines are also being installed at existing plants in Monterrey, Mexico, Phnom Penh, Cambodia and Agoncillo, Spain,” the company adds.

“Regarding first quarter results in the North American food can business benefited from unit volume growth of 16% in two-piece cans manufactured in-house as a result of new capacity installed at the Iowa and Pennsylvania plants in 2021. The additional two-piece food can capacity is expected to be commercialized later this year when we complete construction of a third line to our Owatonna, Minnesota plant.

Net income attributable to Crown Holdings in the first quarter was $216 million compared to $211 million in the first quarter of 2021. In addition, the company has entered into a definitive agreement to sell the Kiwiplan business in the Transit Packaging segment and will receive proceeds of approximately $182 million following the transaction.