Crown Holdings’ 2Q results hit by exchange rate; Mexican plant on schedule to open in 2018

25 July, 2017

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Package manufacturer for food and beverages Crown Holdings, Inc. reported net sales in the second quarter for US$ 2.16 billion compared to US$ 2.14 billion in the second quarter of 2016, reflecting increased global beverage can volumes and the pass through of higher raw material costs, partially offset by US$ 48 million of unfavorable currency translation.

Income from operations was US$ 271 million in the second quarter of 2017. Segment income increased to US$ 297 million in the quarter over the US$ 288 million in the second quarter of 2016, despite US$ 5 million of unfavorable currency translation.

“Our second quarter performance puts us well on our way to a strong 2017, as all businesses delivered solid results,” Timothy J. Donahue, president and CEO, said. “Beverage can volume growth was notable in Europe, Latin America and Southeast Asia.

The company highlighted that various global growth projects remain on schedule. “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,” Donahue added. Meanwhile, a glass bottle facility in Chihuahua, Mexico is scheduled for start-up in the first half of 2018.

Net sales for the first six months of 2017 were US$ 4.06 billion compared to US$ 4.03 billion in the first six months of 2016, primarily due to increased global beverage can volumes and the pass through of higher raw material costs, partially offset by US$ 102 million of unfavorable currency translation.

Income from operations was US$ 508 million in the first half of 2017. Segment income in the first half of 2017 increased to US$ 525 million over the US$ 509 million in the first six months of 2016, despite US$ 11 million of unfavorable currency translation.

Crown Holdings owns 6 plants in Mexico, 5 facilities manufacture cans and bottles for beverages in Ensenada, Monterrey, Guadalajara, Toluca and Orizaba. The company also supplies cans for the pet food industry from a plant located in Mexico, City.

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