DOW JONES NEWSWIRES
Crown Holdings Inc.'s (CCK) third-quarter profit slid 5.3% on a
restructuring charge as well as effects of foreign-currency
exchange.
Chairman and Chief Executive John Conway said the can
manufacturer's improved margins "reflects the country markets in
which we have expanded over the last several years, the
diversification of our geographic footprint, and our mix of
customers and products."
Demand for Crown's products has held up well in the U.S. as more
cash-strapped consumers turn to packaged foods they eat at home.
And metal containers remain a growing business in many parts of the
world.
The 117-year-old Crown reported a profit of $108 million, or 67
cents a share, down from $114 million, or 70 cents a share, a year
earlier.
The latest results included $40 million in restructuring charges
related to plant closures, a $35 million tax benefit and a $27
million loss from the early extinguishment of debt. The prior-year
quarter included $6 million in restructuring charges and asset
impairments and a $5 million tax benefit.
Excluding items, earnings rose 81 cents a share from 70
cents.
Revenue slid 3.7% to $2.28 billion, and the stronger dollar
reduced sales by $129 million.
Analysts' estimates were for per-share earnings of 80 cents on
revenue of $2.34 billion, according to a poll by Thomson
Reuters.
Gross margin rose to 16% from 15.8% on cost cuts and better
efficiency partially offset by higher pension costs and unfavorable
foreign-currency exchange.
Net sales fell in every segment except North America food, where
they grew 16%. Earnings were flat in the Americas beverage and
European beverage segments but jumped 53% in North America food.
European food profit fell 4.5%, while European specialty packaging
earnings climbed 25%.
Crown's shares fell 1.8% to $28.70 in after-hours trading. The
stock has more than doubled from a three-year low last November and
reached a new 52-week high earlier Wednesday.
- By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com