Crown Holdings’ net sales up by 12% to $3,078 million in Q1

Crown Holdings announced its financial results for the first quarter ended March 31, 2021. Net sales stood at $3,078 million, a hike of 12% from $2,757 million in the first quarter of 2020 reflecting increased sales unit volumes in all segments.

The company’s income from operations was $384 million in Q1 compared to $246 million in the first quarter of 2020. Segment income came in at $433 million from $298 million in the prior year first quarter primarily due to increased sales unit volumes.

Timothy J. Donahue, President and Chief Executive Officer, stated, "The Company's performance during the first quarter was excellent, as adjusted earnings per share and segment income grew 62% and 45%, respectively, from prior year results.  Each of our global businesses executed well both commercially and operationally in the face of the challenges posed by the continuing pandemic.”

“Beverage can volumes were strong across all global regions, led by North America, as consumers and customers alike continue to increasingly prefer the infinitely recyclable aluminum can over other packaging options.  Transit Packaging, having successfully implemented several cost reduction initiatives, exceeded our expectations and is well positioned for continuing improvement as global manufacturing activity further accelerates.”

"On April 8th the Company announced an agreement to sell its European Tinplate business, which is comprised of 44 manufacturing facilities in Europe, the Middle East and Africa that produce food cans and ends, aerosol cans, metal closures and promotional packaging for various consumer brands.  We are very pleased that the business will have a strong owner in KPS Capital Partners to support future profitable growth and innovation initiatives.  Net proceeds from the transaction will be used for debt reduction, beverage can capital projects and share repurchases over time.

"To meet accelerating demand for beverage cans, which now account for approximately 75% of our income from operations, the Company is implementing several capacity expansion projects globally, which include both the construction of new plants and the addition of production lines to existing facilities.  Between 2020 and the end of 2022, we expect to add 15 billion units of annual capacity to the 2019 base of 70 billion units.  During 2021, we will be commercializing approximately 6 billion units of annual capacity with projects including a new, two-line facility in Bowling Green, Kentucky and a new one-line plant in Vung Tau, Vietnam as well as additional production lines in Olympia, Washington and Rio Verde, Brazil."

Net income attributable to Crown Holdings was $211 million compared to $88 million in the first quarter of 2020.  Reported diluted earnings per share were $1.57 in the first quarter of 2021.