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Crown pleased with second quarter results
Date: 20/07/2010
One highlight of Crown’s second quarter results is the improved global volumes across all of the company’s product lines, including an 8% rise in global beverage can sales.In the three months to 30 June, net sales were $2,010 million compared to $2,055m in the second quarter of 2009. The company said the pass-through of lower raw material costs and the effect of foreign currency exchange had hit the value of sales despite rising volumes.
Second quarter gross profit improved to $335m over the $333m in the 2009 second quarter, reflecting an increase in global sales unit volumes and cost reductions, which more than offset inventory repricing gains recognised in the second quarter of 2009 that did not recur in 2010 and $4m from foreign currency translation.
Global beverage can sales rose 8% while income per diluted share increased to $0.69.
Net income attributable to Crown Holdings in the second quarter was $112m compared to $105m, or $0.65 per diluted share, in the second quarter of 2009.
Commenting on the results, John W Conway, chairman and chief executive officer, said: “Overall, we are pleased with our second quarter results which were driven by improved global volumes across all product lines. Our Americas beverage business had a very strong quarter on 10% volume growth reflecting increased North American volumes and contribution from our new plant in Brazil. Our North American food business enjoyed increased profitability reflecting the benefits of our cost reduction and realignment efforts over the last two years. Demand was strong throughout our European businesses with food can volumes up 6% and beverage can volumes increasing 7% in the quarter.”
Growth in the emerging markets in Asia, Latin America and Eastern Europe remains on track, according to the company.
“The second beverage can line in our Dong Nai, Vietnam plant will begin operations in the fourth quarter. Over the first two quarters of 2011, three additional beverage can lines in Brazil are expected to begin commercial production and the new Hangzhou, China plant is expected to become operational in the third quarter of 2011,” adds Conway.
“We further expect that recently opened plants in Brazil, Slovakia and Vietnam will continue to contribute as they improve productivity and operating efficiencies. Looking ahead, Crown is well positioned in many of the most exciting growth markets around the world as we continue to expand to meet our global and regional customers’ needs.”
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