Crown Holdings, Inc. (NYSE: CCK) stock fell over 5.5% in the pre market session on October 18th, 2018 (Source: Google finance). The firm witnessed a soft European food can volumes reflecting the extremely challenging weather conditions which resulted in poor harvest yields. Growth in beverage cans is underpinned by the can’s increasing popularity among customers and consumers due to its many inherent benefits, including being the world’s most sustainable form of beverage packaging.
Net income attributable to Crown Holdings in the third quarter was $164 million compared to $177 million in the third quarter of 2017.
CCK in the third quarter of FY 18 has reported the adjusted earnings per share of $1.71, beating the analysts’ estimates for the adjusted earnings per share of $1.66. The company had reported the adjusted revenue growth of 35.9 percent to $3.17 billion in the third quarter of FY 18, which is as per the analysts’ estimates for revenue of $3.17 billion. The increase in the net sales compared to $2,468 million in the third quarter of 2017 reflecting the impact of the Signode acquisition, an increase in beverage can volumes and the pass through of higher material costs to customers. Income from operations is of $365 million in the third quarter compared to $328 million in the third quarter of 2017. Segment income increased to $415 million in the third quarter compared to $352 million in the prior year third quarter primarily due to the Signode acquisition.
Moreover, Interest expense was $105 million in the third quarter of 2018 compared to $64 million in 2017 primarily due to higher outstanding debt from borrowings incurred to finance the Signode acquisition.
CCK currently expects fourth quarter adjusted diluted earnings to be in the range of $0.97 to $1.02 per share. The adjusted effective income tax rate for the full year of 2018 is expected to be between 25% and 26%. Adjusted free cash flow, as defined below, is currently expected to be approximately $625 million for 2018 and $775 million for 2019, unchanged from prior guidance.
Meanwhile, this year Crown partnered with design and research agency Kinneir Dufort to drill down into what is driving consumers to purchase the packaging formats they do and their perceptions, specifically, on metal products. The results were interesting. Crown has developed eight ‘opportunity platforms’ that aim to deliver packaging concepts that appeal to modern consumer