TAMPA, Fla. - Crown Holdings, Inc. (NYSE: NYSE:CCK) reported mixed financial results for the first quarter ended March 31, 2024, with adjusted earnings per share (EPS) slightly surpassing analyst expectations but revenue falling short.
The company, a leader in packaging products for consumer goods, announced an adjusted EPS of $1.02, which was $0.03 higher than the analyst estimate of $0.99. However, revenue for the quarter was reported at $2.78 billion, missing the consensus estimate of $2.95 billion and down from $2.97 billion in the same quarter last year.
The company's performance was influenced by higher beverage can shipments in the Americas and European Beverage, along with a favorable foreign currency impact of $10 million. These gains were partially offset by a pass-through of $130 million in lower material costs and decreased volumes in most other businesses. The income from operations saw a decline to $245 million from $269 million in the first quarter of the previous year. Timothy J. Donahue, Chairman, President, and Chief Executive Officer, attributed the strong performance in the beverage can businesses to an 11% increase in combined segment incomes over the prior year's first quarter.
Looking ahead, Crown Holdings provided guidance for the second quarter adjusted EPS in the range of $1.55 to $1.65, which is above the analyst consensus of $1.56. For the full year 2024, the company expects adjusted EPS to be between $5.80 and $6.20, compared to the consensus of $5.98.
The company's net income attributable to Crown Holdings was $67 million, down from $102 million in the first quarter of the previous year. Adjusted free cash flow improved by $296 million, driven by better cash from operations due to lower working capital and reduced capital spending. The adjusted net leverage ratio improved to 3.4 times for the twelve months ended March 31, 2024, from 4.1 times in the same period last year.
Crown Holdings' capital expenditure outlook remains conservative, with no more than $500 million expected in each of 2024 and 2025. Donahue expressed confidence in the company's position to service current and future demand following the completion of its beverage can expansion program.
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