Crown Holdings posts an 18.7% surge in Q3 operating income led by improved shipments of beverage cans

Crown Holdings Inc., a leading American company specialising in making metal beverage and food cans, metal closures, and speciality packing, has announced its third-quarter financial results, which have marked significant growth in each global beverage can business, exceeding original expectations.

In the third quarter ended September 30, 2024, net sales reached $3,074 million, increasing from $3,069 million a year ago, attributed to higher shipments of global beverage cans and food cans in Brazil, Europe, Mexico, and the United States. In H1 2024, Brazil reported growing beverage can sales led by favourable macroeconomic conditions. Brazilian Association of Aluminum Can Manufacturers expressed an estimated 5 per cent growth in beverage can sales at the end of the year, compared to an annual rise of 1.65 per cent last year.

However, lower volumes of shipments in most other businesses and unfavourable foreign currency translation of $9 million subdued net sales partially, resulting in a drop in total net sales through nine months to $8,898 million versus $9,152 million during the corresponding period of the last year.

Crown Holdings’ operating income surged over a year by 18.72 per cent from $374 million in Q3 2023 to $444 million in Q3 2024. Segment income was $472 million in the September quarter this year, up 10 per cent Y-o-Y from $430 million due to improved results in global beverage operations but partially offset by the impact of lower volumes in transit packaging and the beverage can equipment business.

In nine months, income from operations was $1,068 million, up by 5.74 per cent annually from $1,010 million. Segment income was $1,217 million, up 5 per cent Y-o-Y from $1,164 million.

Commenting on the quarterly results, Timothy J. Donahue, chairman, president and chief executive officer of Crown Holdings, said: “The Company continued its strong 2024 performance during the third quarter, with results in each of its global beverage can businesses exceeding original expectations. Global beverage shipments improved 5% during the quarter, with Brazil, Europe, Mexico and the United States all recording increases of 5% or more.”

Crown Holdings also highlighted in the latest fiscal report that its cash generation from operating activities amounted to $897 million through the first nine months of 2024, and adjusted free cash flow stood at $668 million.

During the third quarter, the company moved portions of its US and Canadian pension plan obligations to insurers, resulting in total pension settlement charges of $517 million. Net loss attributable to Crown Holdings in Q3 2024 was $175 million, up from $159 million in Q3 2024. Diluted loss per share was $1.47 in Q3 2024, compared to diluted earnings per share of $1.33 a year ago.