Crown releases second quarter results

Beverage can volumes at Crown increased by 5% during the second quarter. Despite this net sales were down on the same period of 2011, mainly due to a $101 million unfavourable currency translation.

Net sales in the second quarter were $2,184 million compared to $2,281 million in the second quarter of 2011.

Second quarter gross profit was $340 million compared to $371 million in the 2011 second quarter, reflecting reduced European profits, the result of lower customer demand and production activity for three-piece steel products and $13 million of unfavourable foreign currency translation.

Segment income was $250 million in the second quarter compared to $271 million in the second quarter of 2011 due to lower European profits and $9 million of unfavourable foreign currency translation.  Segment income was 11.4% of net sales compared to 11.9% in the second quarter of 2011.

Commenting on the quarter, John Conway (pictured), chairman and chief executive officer, said: “We are pleased with overall performance in the second quarter in the context of challenging European economic and weather conditions.  In the Americas and Asia we continued to perform well.  Importantly, the results demonstrate the benefit of our product and geographic diversity.  Globally, beverage can volumes grew 5%, driven by our emerging market capacity expansion program over the last few years.”

During the quarter the company commercialised new beverage can plants in Ziyang, China and Osmaniye, Turkey, completed the expansion of its Ho Chi Minh City, Vietnam plant and started commercial production of beverage can ends at its new plant in Heshan, China.

“All of these projects are to meet customer demand in these growing markets. Equally important, we are committed to the conservative deployment of capital and remain focused on the opportunities and challenges in our markets around the world,” Conway adds.

Net sales for the first six months of 2012 were $4,131 million compared to $4,163 million in the first six months of 2011, reflecting $137 million of unfavourable foreign currency translation offset by increased global sales unit volumes.

Gross profit for the six month period was $627 million compared to $663 million in the first six months of 2011.

Net income attributable to Crown Holdings for the first six months of 2012 was $203 million compared to $145 million in the first six months of 2011.  Income per diluted share for the first six months of 2012 were $1.35 compared to $0.93 in the first half of last year.

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