Crown Holdings (CCK) Tops Q1 EPS by 44c, Revenues Beat; Offers 2Q EPS Guidance Above Consensus, FY21 EPS Views Below Consensus

April 19, 2021 5:02 PM EDT

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Crown Holdings (NYSE: CCK) reported Q1 EPS of $1.83, $0.44 better than the analyst estimate of $1.39. Revenue for the quarter came in at $3.08 billion versus the consensus estimate of $2.98 billion.

Highlights

  • Earnings per share $1.57 versus $0.65 in 2020
  • Adjusted earnings per share increased to $1.83 over the $1.13 in 2020
  • Global beverage can volumes grew 8%; capacity expansion projects on schedule
  • Solid food can demand
  • Announced agreement to sell European Tinplate business

Commenting on the quarter, 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."

GUIDANCE:

Crown Holdings sees Q2 2021 EPS of $1.70-$1.80, versus the consensus of $1.65.

Crown Holdings sees FY2021 EPS of $6.60-$6.80, versus the consensus of $6.86.

The Company currently expects second quarter adjusted earnings to be in the range of $1.70 to $1.80 per share. This guidance includes the results of the European Tinplate operations, which will be reported as discontinued operations beginning with the second quarter results.

The Company's full year adjusted earnings guidance of $6.60 to $6.80 per share is consistent with its previous guidance, as the assumed dilution from the sale of the European Tinplate business in the third quarter is expected to be offset by improved performance in the remaining operations.

For earnings history and earnings-related data on Crown Holdings (CCK) click here.



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