Crown Holdings Inc.
(
CCK
) reported third-quarter adjusted earnings per share (EPS) of
$1.00, down 1% from $1.01 in the year-ago quarter. Reported EPS
was in line with the Zacks Consensus Estimate and at the mid
point of the company's guided range of 95 cents to $1.05.
Including restructuring charges, gains on asset sale and
income tax benefit recorded in the third quarter, EPS stood at
$2.20. Including restructuring charges and gains on asset sale
and an income tax charge, EPS in the prior-year quarter was 84
cents.
Total revenue declined 5% on a year-over-year basis to $2.3
billion in the quarter, due to unfavorable currency translation,
but was in line with the Zacks Consensus Estimate. Global
beverage can volumes were up 5% in the quarter.
Costs and Margins
Cost of sales improved 5% to $1.89 billion in the reported
quarter. Gross profit dipped 7% to $369 million in the
quarter from $396 million in the prior-year quarter, reflecting
$16 million in unfavorable foreign currency translation. Gross
margin contracted 30 basis points year over year to 16%.
Selling, engineering and administration expenses also improved
to $92 million in the quarter from $96 million in the prior-year
quarter. Adjusted operating income declined 8% to $277 million
from $300 million in the year-ago quarter. Operating margins
contracted 40 basis points to 12% in the quarter.
Financial Position
As of September 30, 2012, cash and cash equivalents amounted
to $240 million compared with $230 million as of June 30, 2012.
Receivables increased to $1.4 billion as of September 30, 2012
compared with $1.2 billion as of June 30, 2012. Long-term debt
increased to $3.6 billion as of September 30, 2012 from $3.5
billion as of June 30, 2012.
Cash flow from operating activities was a usage of $117
million in the first nine months ended September 30, 2012
compared with usage of $134 in the prior-year comparable
period.
The company has entered into an agreement to purchase shares
of its common stock under an accelerated share repurchase
program. Under the program, as of August 14, 2012, 5,016,190
shares were initially purchased for $200 million.
Philadelphia, Pennsylvania-based Crown Holdings engages in the
design, manufacture, and sale of packaging products for consumer
marketing companies worldwide. The company's products include
aluminum beverage cans and ends, and other packaging products to
beverage and beer companies; food cans and ends, aerosol cans and
ends as well as steel containers for food products.
It competes with
Ball Corporation
(
BLL
),
Rexam plc
(
REXMY
) and
Silgan Holdings Inc.
(
SLGN
). The company currently retains a Zacks #3 Rank (short-term Hold
recommendation).
BALL CORP (BLL): Free Stock Analysis Report
CROWN HLDGS INC (CCK): Free Stock Analysis
Report
REXAM PLC-ADR (REXMY): Free Stock Analysis
Report
SILGAN HOLDINGS (SLGN): Free Stock Analysis
Report
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