Q3 2024 Crown Holdings Inc Earnings Call Transcript
Key Points
- Crown Holdings Inc (CCK) reported strong third-quarter operating results, with segment income increasing to $472 million from $430 million in the prior year.
- The company achieved a 15% increase in adjusted earnings per diluted share, reaching $1.99 compared to $1.73 in the prior quarter.
- Free cash flow remained robust at $668 million through nine months, driven by excellent operational performance and reduced capital spending.
- Crown Holdings Inc (CCK) successfully strengthened its balance sheet by transferring $860 million of pension plan assets and liabilities to insurance companies, reducing future cash flow and earnings risk.
- The Board of Directors authorized a $2 billion share repurchase program through the end of 2027, with $110 million repurchased during the quarter.
- The company recorded a GAAP loss of $1.47 per share in the quarter, primarily due to a noncash pension settlement charge of $4.33 per share.
- Demand softness was noted across most businesses, impacting overall performance despite gains in specific segments.
- Transit Packaging income declined due to weakening global manufacturing conditions, with activity expected to remain in contraction through year-end.
- The Asia Pacific segment experienced an 11% decline in unit volume sales, although income improved due to capacity reduction efforts.
- The company anticipates potential headwinds from PPI adjustments in 2025, which could impact pricing dynamics.
Good morning, and welcome to Crown Holdings Third Quarter 2024 Conference Call. (Operator Instructions). Please be advised that this conference is being recorded.
I would now like to turn the call over to Mr. Kevin Clothier, Senior Vice President and Chief Financial Officer. Sir, you may begin.
Thank you, and good morning. With today's call is Tim Donahue, President and Chief Executive Officer. If you do not already have the earnings release, it is available on our website at crowncork.com.
On this call, as in the earnings release, we will be making a number of forward-looking statements. Actual results could vary materially from statements. Additional information concerning factors that could cause actual results to vary is contained in the press release and in our SEC filings, including our Form 10-K for 2023 and subsequent filings.
Net sales in the quarter were level with prior year at $3.1 billion, reflecting increases in global beverage can
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