Bearish stock to watch: Crown Holdings, Inc. (NYSE: CCK)

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Crown Holdings, Inc. (NYSE: CCK) stock fell over 1.7% on April 21st, 2020 (as of 1:29 pm GMT-4 ; Source: Google finance)  post the first quarter of FY 20. Net income attributable to Crown Holdings in the first quarter had fallen to $88 million compared to $103 million in the first quarter of 2019. Income from operations fell to $246 million in the first quarter compared to $262 million in the first quarter of 2019.  Segment income has fallen to $298 million in the first quarter compared to $315 million in the prior year first quarter.  The results for European Food and the nonreportable segments has included the unfavorable impacts of $18 million and $16 million, respectively, in 2020 versus 2019 that have grown from the carryover of tinplate costs from the prior year end inventory. Further, during the first quarter despite the face of the emerging coronavirus pandemic, the global beverage can shipments grew 10% in the first quarter, on the back of double-digit gains in Brazil, Canada, Europe, the Middle East and the United States, as consumers increasingly prefer cans for off-premise refreshment occasions.  Strong global food can volume growth is driven by a notable increase in North American shipments. The company has taken a number of specific actions during these challenging times, that includes the increased safety measures at the manufacturing facilities to ensure that they can continue to meet evolving requirements in a safe and timely manner. The Company intends to implement all previously announced capacity expansion projects, although due to certain near-term logistical challenges driven by the coronavirus pandemic may delay project timing in some cases.

Moreover, due to outbreak of COVID-19 pandemic, the Company has taken specific actions to ensure the safety of its employees.  The company had implemented the travel and visitor restrictions in February, and is now updating its policies as new information becomes available.  The Company has taken increased safety measures in its manufacturing facilities for the safety of its employees and the products they produce.

CCK in the first quarter of FY 20 has reported the adjusted earnings per share of $1.13, beating the analysts’ estimates for the adjusted earnings per share of 92 cents, according to figures compiled by Thomson Reuters. The company had reported flat adjusted revenue at $2.76 billion in the first quarter of FY 20. The revenue grew due to increased beverage can volumes offset by the pass through of lower raw material costs and $40 million of unfavorable currency translation.

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