Crown Holdings (CCK) Tops Q2 Earnings Despite Lower Sales
Zacks Investment Research | Jul 21, 2016 03:36AM ET
Crown Holdings (NYSE:CCK) reported second-quarter 2016 adjusted earnings per share of $1.19, which surpassed the Zacks Consensus Estimate of $1.10 and increased 16% year over year. The year-over-year upside was driven by stronger beverage can volumes and improved European Beverage performance. On a reported basis, earnings came in at $1.21 per share, an increase from $1.02, in the year-ago quarter.
Operational Update
Net sales in the quarter declined nearly 6% year over year to $2,142 million from $2,278 million in the year-ago quarter primarily, due to unfavorable currency translation and the pass through of lower material costs. Revenues also lagged the Zacks Consensus Estimate of $2,240 million.
Cost of products sold went down 8.2% year over year to $1.69 billion. Gross profit increased by 3.7% to $451 million, with gross margin expansion of 200 basis points to 21.1% in the quarter, both on a year-over-year basis.
Selling and administrative expenses decreased 5% year over year to $94 million. Segment income improved 5.9% year over year to $288 million in the quarter. Operating margin improved to 13.4% from 12% in the year-ago quarter.
Segment Performance
Net sales from the Americas Beverage segment were $706 million, down 4.7% from $741 million in the year-ago quarter. Segment operating profit however rose to $106 million from $99 million in the year-ago quarter.
The North-America Food segment’s sales went down 1.2% year over year to $168 million. Operating earnings also fell 13% year over year to $20 million.
The European Beverage segment’s sales dropped 5% year over year to $401 million. However, operating income increased 13.6% year over year to $75 million.
Revenues in the European Food segment were down 6.1% year over year to $462 million. Segment operating profit went down1.5% to $67 million from $68 million in the year-ago quarter.
Revenues in the Asia-Pacific segment decreased 9.4% year over year to $281 million. Operating profit remained flat at $39 million in the reported quarter.
Financial Update
Crown Holdings had cash and cash equivalents of $370 million at the end of second-quarter 2016, compared with $288 million at the end of 2015. Cash flow from operations came in at $63 million for the six-month period ending Jun 30, 2016 compared with cash usage of $15 million in the comparable year-ago period. As of quarter end, Crown Holdings’ total debt fell to $5.05 billion from $5.67 billion as of Jun 30, 2015.
Get The News You Want
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.