Crown Holdings (NYSE: CCK) reported Q2 EPS of $1.55, $0.01 worse than the analyst estimate of $1.56. Revenue for the quarter came in at $3.05 billion versus the consensus estimate of $2.98 billion.

Second Quarter Highlights

• Earnings per share $0.99 versus $0.94 in 2017
• Adjusted earnings per share $1.55 versus $1.17 in 2017
• Global beverage can volumes grew 4% in the quarter and year-to-date
• Transit Packaging acquisition completed April 3, 2018

Commenting on the quarter, Timothy J. Donahue, President and Chief Executive Officer, stated, "We performed well in the second quarter. We saw solid gains in global beverage can shipments and excellent operating results in our European Food and newly-acquired Transit Packaging businesses. Global beverage can volume growth of over 4% was propelled by strong demand in Brazil, North America and Southeast Asia. This strong operational performance was somewhat offset by macroeconomic headwinds from elevated freight costs in North America and foreign currency losses in Brazil due to the strength of the U.S. dollar. We have revised our full year outlook with the expectation that elevated freight costs and the strength of the dollar will continue for the remainder of the year.

"As previously announced, the Company completed the acquisition of the Transit Packaging business on April 3, 2018. Transit Packaging made a significant contribution during the second quarter with continued growth across its leading equipment and tools businesses and is well positioned to continue to grow in the future. On August 1, 2018, Bob Bourque, previously the President of the Asia Pacific division, will become the President of Transit Packaging. I am confident that Bob will be an outstanding leader of this important business. On behalf of the Company, I would also like to thank Mark Burgess for his support throughout the transition.

"To meet the continually expanding demand for beverage cans, our global growth projects remain on schedule. We began production at a new one-line beverage can plant in Yangon, Myanmar earlier this month. The two-line beverage can plant in Valencia, Spain will commence operations during the fourth quarter. We are also constructing a third beverage can line at the Company\'s existing plant in Phnom Penh, Cambodia to start production during the fourth quarter."

Outlook

The Company currently expects third quarter and full year 2018 adjusted diluted earnings to be in the ranges of $1.60 to $1.70 and $5.15 to $5.30 per share, respectively.

Compared to its prior guidance, the Company is reducing its full year earnings estimate primarily due, in equal parts, to continued elevated freight costs in North America and the impact of foreign currency translation from the strength of the U.S. dollar.

The adjusted effective income tax rate for the full year of 2018 is expected to be between 25% and 26%, although it may vary from quarter to quarter. Adjusted free cash flow, as defined below, is currently expected to be approximately $625 million for 2018 and $775 million for 2019, unchanged from prior guidance.

GUIDANCE:

Crown Holdings sees FY2018 EPS of $5.15-$5.30, versus the consensus of $5.39.

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