Emerging markets still key for Crown

Can making company Crown Holdings is set to press ahead with its emerging market expansion program, despite a slump in 2011 net profits.

As part of the program Crown has announced plans to build three new beverage can plants in China and a new plant in Turkey.

The company’s results for the year ended 31 December 2011 show that net income attributable to Crown amounted to $282 million compared to $324m in 2010.

Before certain items, net income increased 19.3% to $433 million over the $363 million in 2010.

Commenting on the results, Crown’s chairman and CEO John Conway (pictured), said: “Our emerging market expansion program remains on schedule and budget. We are in the process of constructing three new beverage can plants in China which are expected to be completed by the end of the third quarter of 2012. We have also announced three additional beverage can lines in China for completion in 2013.  Additional beverage can capacity expansion in Vietnam is expected to be completed in the second quarter of 2012 followed by the completion of a new beverage can plant in Osmaniye, Turkey in the third quarter.  Importantly, all of these investments are being made to meet local demand.  We continue to evaluate many new and exciting opportunities but remain committed to conservative deployment of capital by growing with our customers to meet long term demand in promising emerging markets.”

Gross profit for 2011 improved to $1,348 million over the $1,250 million in 2010 and reflects global sales unit volume growth, ongoing productivity improvements, and $27 million of favourable foreign currency translation.  Emerging markets accounted for 41% of global beverage can volume.

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