On July 22, 2024, Crown Holdings Inc (CCK, Financial) released its 8-K filing for the second quarter of 2024. Crown Holdings, one of the world's largest producers of metal packaging, reported mixed results with earnings per share (EPS) surpassing analyst estimates while revenue fell short.
Company Overview
Crown Holdings Inc (CCK, Financial) manufactures beverage cans, metal food cans, closures, and aerosol cans. The company also has a presence in protective transport packaging through its acquisition of Signode. Although headquartered in the United States, the majority of Crown's sales come from Europe, South America, and Southeast Asia.
Q2 2024 Financial Performance
Net sales for the second quarter were $3,040 million, a slight decline from $3,109 million in the same period last year. This decrease was primarily due to the pass-through of $94 million in lower material costs and unfavorable foreign currency impacts of $13 million, despite higher global beverage can shipments.
Income from operations increased to $379 million from $367 million in Q2 2023, driven by improved results in global beverage operations. Segment income rose to $437 million from $414 million in the prior year, reflecting a 21% improvement in beverage segment income on a global basis.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales | $3,040 million | $3,109 million |
| Income from Operations | $379 million | $367 million |
| Segment Income | $437 million | $414 million |
| Net Income | $174 million | $157 million |
| Diluted EPS | $1.45 | $1.31 |
| Adjusted Diluted EPS | $1.81 | $1.68 |
Commentary and Analysis
"The Company performed well during the quarter, led by strong results in each of the global beverage businesses. Benefitting from our broad geographic presence and strategic customer alliances, beverage segment income improved by 21% in the second quarter on a combined global basis." - Timothy J. Donahue, Chairman, President, and CEO
Net income attributable to Crown Holdings in Q2 2024 was $174 million, up from $157 million in Q2 2023. Reported diluted EPS was $1.45, exceeding the analyst estimate of $1.43. Adjusted diluted EPS was $1.81, compared to $1.68 in the prior year, reflecting higher global beverage can results.
Six-Month Performance
For the first six months of 2024, net sales were $5,824 million, down from $6,083 million in the same period of 2023. Income from operations was $624 million, compared to $636 million in the first half of 2023. Segment income for the first half of 2024 was $745 million, up from $734 million in the prior year.
Net income for the first six months was $241 million, down from $259 million in the same period of 2023. Reported diluted EPS was $2.01, compared to $2.16 in 2023, while adjusted diluted EPS was $2.83, down from $2.88 in the prior year.
Outlook
Given the first half results, Crown Holdings now projects full-year diluted EPS in the range of $6.00 to $6.25, up from the previous guidance of $5.80 to $6.20. Free cash flow for the year is expected to be at least $750 million. Third-quarter adjusted earnings per share are anticipated to be between $1.75 and $1.85.
For more detailed insights and analysis, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from Crown Holdings Inc for further details.
