PHILADELPHIA, April 18, 2018 /PRNewswire/ -- Crown
Holdings, Inc. (NYSE: CCK) today announced its financial results for the first quarter ended March 31,
2018.
Highlights
- Earnings per share $0.67 versus $0.77 in 2017
- Adjusted earnings per share $0.94 versus $0.77 in 2017;
excludes intangibles amortization and certain other items in both periods
- Global beverage can volumes grew 3% over prior year
- Completed acquisition of Signode Industrial Group on April 3
Net sales in the first quarter were $2,197 million compared to $1,901
million in the first quarter of 2017 reflecting increased beverage can volumes, the pass through of higher material costs
to customers, and $121 million of favorable currency translation impact.
Income from operations was $221 million in the quarter compared to $225
million in the first quarter of 2017. Segment income increased to $245 million in the
first quarter compared to $226 million in the prior year first quarter and included $12 million of favorable currency translation impact. Segment income for 2017 has been restated to
reflect new accounting guidance on the presentation of pension and postretirement expense and the Company's revised policy to
exclude intangibles amortization charges from segment income.
Commenting on the quarter, Timothy J. Donahue, President and Chief Executive Officer, stated,
"We are very pleased with the Company's performance during the first quarter and we are on track for an excellent 2018.
Adjusted earnings per share rose 22% and segment income gained 8% over the prior year, led by strong results across most
operations.
"Global beverage can volume growth of 3% was fueled by notable gains in Brazil, Southeast Asia and the United States, as consumers in both emerging and
developed markets continue to show a preference for cans over other packaging formats. To meet this expanding demand, our
global beverage can projects remain on schedule. We expect to begin production at the new one-line beverage can plant in
Yangon, Myanmar during the second quarter and the new two-line beverage can plant in
Valencia, Spain during the fourth quarter. The Valencia
plant will begin our conversion from steel to aluminum for beverage cans in the growing Spanish market. We will also
construct a third beverage can line at the Company's existing plant in Phnom Penh, Cambodia to
start production during the fourth quarter. Additionally, in January 2018, ahead of schedule,
the new glass facility in Chihuahua, Mexico commenced operations to serve the growing beer
market in the northern part of the country.
"On April 3, 2018, Crown completed the acquisition of Signode Industrial Group for cash
consideration of $3.9 billion. Signode's products supply critical in-transit protection to
high value, high volume goods across a number of end-markets, including food and beverage, agriculture, corrugated, metals and
construction among others. Combined with a highly engineered equipment and service offering, Signode's geographic and
product mix will provide a strong platform for value creation. Signode adds a portfolio of premier transit and protective
packaging franchises to Crown's growing metal packaging businesses, further broadening and diversifying the customer base and
substantially increasing cash flow. We welcome the 7,000 Signode employees to the Crown organization."
Interest expense was $74 million in the first quarter of 2018 compared to $62 million in 2017 primarily due to higher outstanding debt from borrowings incurred to finance the Signode
acquisition.
Net income attributable to Crown Holdings in the first quarter was $90 million compared to
$107 million in the first quarter of 2017. Reported diluted earnings per share were
$0.67 in the first quarter of 2018 compared to $0.77 in 2017.
Adjusted diluted earnings per share increased to $0.94 over the $0.77
in 2017. As noted below, the Company has revised its policy regarding the treatment of intangibles amortization charges in
calculating adjusted net income and adjusted earnings per share.
A reconciliation from net income and diluted earnings per share to adjusted net income and adjusted diluted earnings per share
is provided below.
Outlook
The Company currently expects second quarter and full year 2018 adjusted diluted earnings to be in the ranges of $1.55 to $1.65 and $5.35 to $5.55 per share, respectively. Consistent with the Company's revised policy, adopted with the closing of
the Signode acquisition, intangibles amortization charges are excluded when calculating adjusted net income and adjusted
earnings per share. Accordingly, these adjusted earnings estimates exclude amortization arising from the Signode
acquisition as well as from the Company's prior acquisitions of Mivisa in 2014 and Empaque in 2015. The pre-tax,
after-tax and earnings per share impact of the new policy are summarized in the reconciliation tables below.
The adjusted effective income tax rate for the full year of 2018 is expected to be between 25% and 26%, although it may vary
from quarter to quarter. Adjusted free cash flow, as defined below, is currently expected to be approximately $625 million for 2018 and $775 million for 2019.
Non-GAAP Measures
Segment income, adjusted free cash flow, adjusted net income, the adjusted effective tax rate and adjusted diluted earnings
per share are not defined terms under U.S. generally accepted accounting principles (non-GAAP measures). Non-GAAP measures
should not be considered in isolation or as a substitute for income from operations, net income, diluted earnings per share or
cash flow data prepared in accordance with U.S. GAAP and may not be comparable to calculations of similarly titled measures by
other companies.
The Company views segment income as the principal measure of the performance of its operations and adjusted free cash flow as
the principal measure of its liquidity. The Company considers both of these measures in the allocation of resources.
Adjusted free cash flow has certain limitations, however, including that it does not represent the residual cash flow available
for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not
deducted from the measure. The amount of mandatory versus discretionary expenditures can vary significantly between
periods. The Company believes that adjusted net income, the adjusted effective tax rate and adjusted diluted earnings per
share are useful in evaluating the Company's operations as these measures are adjusted for items that affect comparability
between periods. Reconciliations of estimated adjusted diluted earnings per share for the second quarter and full year of
2018 to estimated diluted earnings per share on a GAAP basis are not provided in this release due to the unavailability of
estimates of the following, the timing and magnitude of which the Company is unable to reliably forecast without unreasonable
efforts, which are excluded from estimated adjusted diluted earnings per share and could have a significant impact on earnings
per share on a GAAP basis: gains or losses on the sale of businesses or other assets, restructuring costs, asset impairment
charges, acquisition related costs including fair value adjustments to inventory, asbestos-related charges, losses from early
extinguishment of debt, the tax impact of the items above, and the impact of tax law changes or other tax matters. The Company
believes that adjusted free cash flow provides a meaningful measure of liquidity and a useful basis for assessing the Company's
ability to fund its activities, including the financing of acquisitions, debt repayments, share repurchases or possible future
dividends. Segment income, adjusted free cash flow, the adjusted effective tax rate, adjusted net income and adjusted
diluted earnings per share are derived from the Company's Consolidated Statements of Operations and Cash Flows and Consolidated
Balance Sheets, as applicable, and reconciliations to segment income, adjusted free cash flow, the adjusted effective tax rate,
adjusted net income and adjusted diluted earnings per share can be found within this release.
Conference Call
The Company will hold a conference call tomorrow, April 19, 2018 at 9:00
a.m. (EDT) to discuss this news release. Forward-looking and other material information may be discussed on the
conference call. The dial-in numbers for the conference call are (630) 395-0194 or toll-free (888) 324-8108 and the access
password is "packaging." A live webcast of the call will be made available to the public on the internet at the Company's
website, www.crowncork.com. A replay of the
conference call will be available for a one-week period ending at midnight on April 26. The telephone numbers for the
replay are (203) 369-3175 or toll free (888) 562-4201.
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all other information in this press release consists of forward-looking statements.
These forward-looking statements involve a number of risks, uncertainties and other factors, including the future impact of
currency translation; the continuation of performance and market trends in 2018, including consumer preference for beverage cans
and increasing global beverage can demand; the Company's ability to successfully complete and begin production at capacity
expansion projects within expected timelines and budgets in Cambodia, Myanmar and Spain; the Company's ability to generate expected earnings and
cash flow in 2018 and 2019; and the successful integration of Signode that may cause actual results to be materially different
from those expressed or implied in the forward-looking statements. Important factors that could cause the statements made
in this press release or the actual results of operations or financial condition of the Company to differ are discussed under the
caption "Forward Looking Statements" in the Company's Form 10-K Annual Report for the year ended December
31, 2017 and in subsequent filings made prior to or after the date hereof. The Company does not intend to review or
revise any particular forward-looking statement in light of future events.
Crown Holdings, Inc., through its subsidiaries, is a leading global supplier of rigid packaging products to consumer marketing
companies, as well as transit and protective packaging products, equipment and services to a broad range of end markets.
World headquarters are located in Philadelphia, Pennsylvania.
For more information, contact:
Thomas A. Kelly, Senior Vice President and Chief Financial Officer, (215) 698-5341
Thomas T. Fischer, Vice President, Investor Relations and Corporate Affairs, (215) 552-3720
Edward Bisno, Bisno Communications, (212) 717-7578
Unaudited Consolidated Statements of Operations, Balance Sheets, Statements of Cash Flows, Segment Information and
Supplemental Data follow.
|
Consolidated Statements of Operations (Unaudited)
|
|
(in millions, except share and per share data)
|
|
|
Three Months Ended March 31,
|
|
|
2018
|
|
2017 (1)
|
|
|
Net sales
|
$2,197
|
|
$1,901
|
|
|
|
|
|
|
|
Cost of products sold
|
1,808
|
|
1,531
|
|
|
Depreciation and amortization
|
65
|
|
59
|
|
|
Selling and administrative expense
|
90
|
|
90
|
|
|
Restructuring and other
|
13
|
|
(4)
|
|
|
Income from operations (2)
|
221
|
|
225
|
|
|
Other pension and postretirement
|
(17)
|
|
(12)
|
|
|
Foreign exchange
|
18
|
|
(1)
|
|
|
Earnings before interest and taxes
|
220
|
|
238
|
|
|
Interest expense
|
74
|
|
62
|
|
|
Interest income
|
(6)
|
|
(3)
|
|
|
Income before income taxes
|
152
|
|
179
|
|
|
Provision for income taxes
|
39
|
|
46
|
|
|
Net income
|
113
|
|
133
|
|
|
Net income attributable to noncontrolling interests
|
(23)
|
|
(26)
|
|
|
Net income attributable to Crown Holdings
|
$90
|
|
$107
|
|
|
Earnings per share attributable to Crown Holdings
common shareholders:
|
|
|
|
|
|
Basic
|
$0.67
|
|
$0.77
|
|
|
Diluted
|
$0.67
|
|
$0.77
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
Basic
|
133,479,364
|
|
138,475,013
|
|
|
Diluted
|
133,806,636
|
|
138,956,825
|
|
|
Actual common shares outstanding at quarter end
|
134,299,633
|
|
137,758,282
|
|
|
|
|
|
(1)
|
Prior year results have been restated to reflect new accounting guidance on
the presentation of pension and postretirement expense in the statement of operations.
|
|
|
|
(2)
|
A reconciliation from income from operations to segment income
follows.
|
|
Consolidated Supplemental Financial Data (Unaudited)
|
|
(in millions)
|
|
|
|
Reconciliation from Income from Operations to Segment Income
|
|
The Company views segment income, as defined below, as a principal measure
of performance of its operations and for the allocation of resources. Segment income is defined by the Company as
income from operations adjusted to exclude intangibles amortization charges, provisions for asbestos and restructuring
and other, the impact of fair value adjustments to inventory acquired in an acquisition, and the timing impact of hedge
ineffectiveness.
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2018
|
|
|
2017 (2)
|
|
|
|
|
|
Income from
operations
|
$
|
221
|
|
|
$
|
225
|
|
|
|
|
|
|
Intangibles amortization
|
|
11
|
|
|
|
10
|
|
|
|
|
|
|
Provision for restructuring and
other
|
|
13
|
|
|
|
(4)
|
|
|
|
|
|
|
Impact of hedge ineffectiveness
(1)
|
|
|
|
|
|
(5)
|
|
|
|
|
|
|
Segment Income
|
$
|
245
|
|
|
$
|
226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Included in cost of products sold
|
|
|
|
(2)
|
Prior year results have been restated to reflect new accounting guidance on
the presentation of pension and postretirement expense and the Company's revised policy to exclude intangibles
amortization charges from segment income.
|
|
|
|
|
Segment Information
|
|
|
Net Sales
|
|
2018
|
|
2017
|
|
|
|
|
Actual
|
|
Actual
|
|
|
Americas Beverage
|
|
$
|
758
|
|
$
|
674
|
|
|
European Beverage
|
|
|
371
|
|
|
303
|
|
|
European Food
|
|
|
428
|
|
|
379
|
|
|
Asia Pacific
|
|
|
337
|
|
|
278
|
|
|
Total reportable
segments
|
|
|
1,894
|
|
|
1,634
|
|
|
Non-reportable segments
(3)
|
|
|
303
|
|
|
267
|
|
|
Total
net sales
|
|
$
|
2,197
|
|
$
|
1,901
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Income
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas Beverage
|
|
$
|
98
|
|
$
|
104
|
|
|
European Beverage
|
|
|
55
|
|
|
50
|
|
|
European Food
|
|
|
56
|
|
|
51
|
|
|
Asia Pacific
|
|
|
44
|
|
|
39
|
|
|
Total reportable
segments
|
|
|
253
|
|
|
244
|
|
|
Non-reportable segments
(3)
|
|
|
31
|
|
|
28
|
|
|
Corporate and other unallocated
items
|
|
|
(39)
|
|
|
(46)
|
|
|
Total
segment income
|
|
$
|
245
|
|
$
|
226
|
|
|
|
|
(3)
|
Includes the Company's food can and closures businesses in North
America, aerosol can businesses in North America and Europe, the promotional packaging business in Europe, and
tooling and equipment operations in the U.S. and United Kingdom.
|
|
|
|
(4)
|
Prior year segment income has been restated to reflect new accounting
guidance on the presentation of pension and postretirement expense and the Company's revised policy to exclude
intangibles amortization charges from segment income. A reconciliation from 2017 segment income to amounts
previously reported is included below.
|
|
Consolidated Supplemental Data (Unaudited)
|
|
(in millions, except per share data)
|
|
|
|
Reconciliation from Net Income and Diluted Earnings Per Share to
Adjusted Net Income and Adjusted Diluted Earnings Per Share
|
|
|
The following table reconciles reported net income and diluted earnings per
share attributable to the Company to adjusted net income and adjusted diluted earnings per share, as used elsewhere in
this release.
|
|
|
|
Three Months Ended March 31,
|
|
|
2018
|
|
2017
|
|
Net income/diluted earnings per share attributable to
Crown Holdings, as reported
|
$90
|
|
$0.67
|
|
$107
|
|
$0.77
|
|
Intangibles amortization (1)
|
11
|
|
.08
|
|
10
|
|
.07
|
|
Restructuring and other
(2)
|
13
|
|
.10
|
|
(4)
|
|
(.03)
|
|
Impact of hedge ineffectiveness
(3)
|
|
|
|
|
(5)
|
|
(.03)
|
|
Acquisition costs (4)
|
24
|
|
.18
|
|
|
|
|
|
Income taxes (5)
|
(12)
|
|
(.09)
|
|
(1)
|
|
(.01)
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income/diluted earnings per share
|
$126
|
|
$0.94
|
|
$107
|
|
$0.77
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate as reported
|
25.7%
|
|
|
|
25.7%
|
|
|
|
Adjusted effective tax rate
|
25.5%
|
|
|
|
26.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income, adjusted diluted earnings per share and the adjusted
effective tax rate are non-GAAP measures and are not meant to be considered in isolation or as a substitute for net
income, diluted earnings per share and effective tax rates determined in accordance with U.S. generally accepted
accounting principles. The Company believes these non-GAAP measures provide useful information to evaluate the
performance of the Company's ongoing business.
|
|
|
(1)
|
In the first quarters of 2018 and 2017, the Company recorded charges of $11
million ($8 million net of tax) and $10 million ($7 million net of tax) for intangibles amortization arising from its
acquisitions of Mivisa in 2014 and Empaque in 2015.
|
|
|
|
(2)
|
In the first quarter of 2018, the Company recorded restructuring and other
charges of $6 million ($5 million net of tax) including $3 million of transaction costs. In the first quarter of
2017, the Company recorded restructuring and other charges of $2 million ($2 million net of tax) related to previously
announced restructuring projects.
|
|
|
|
In the first quarter of 2018, the Company recorded charges of $7 million
($6 million net of tax) for asset sales and impairments. In the first quarter of 2017, the Company recorded net
gains of $6 million ($5 million net of tax) for asset sales and impairments.
|
|
|
|
(3)
|
In the first quarter of 2017, the Company recorded a benefit of $5 million
($4 million net of tax) in cost of products sold related to hedge ineffectiveness caused primarily by volatility in the
metal premium component of aluminum prices.
|
|
|
|
(4)
|
In the first quarter of 2018, the Company recorded a charge of $15 million
($10 million net of tax) for net losses arising from its hedge of the U.S. dollar purchase price for its acquisition of
Signode. In addition, the Company incurred net charges of $9 million ($7 million net of tax) for pre-acquisition
interest carrying costs on borrowings to finance the transaction.
|
|
|
|
(5)
|
In the first quarter of 2018, the Company recorded income tax benefits of
$12 million related to the items described above. In the first quarter of 2017, the Company recorded income tax
benefits of $1 million related to the items described above.
|
|
Consolidated Balance Sheets (Condensed & Unaudited)
(in millions)
|
|
March 31,
|
2018
|
|
2017
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
2,201
|
|
|
$
|
338
|
|
|
Receivables, net
|
|
|
1,386
|
|
|
|
899
|
|
|
Inventories
|
|
|
1,431
|
|
|
|
1,417
|
|
|
Prepaid expenses and other current assets
|
|
|
243
|
|
|
|
234
|
|
|
Total
current assets
|
|
|
5,261
|
|
|
|
2,888
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill and intangible assets
|
|
|
3,621
|
|
|
|
3,357
|
|
|
Property, plant and equipment, net
|
|
|
3,322
|
|
|
|
2,898
|
|
|
Other non-current assets
|
|
|
875
|
|
|
|
727
|
|
|
Total
|
|
$
|
13,079
|
|
|
$
|
9,870
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and equity
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
Short-term debt
|
|
$
|
32
|
|
|
$
|
37
|
|
|
Current maturities of long-term debt
|
|
|
61
|
|
|
|
57
|
|
|
Accounts payable and accrued
liabilities
|
|
|
2,768
|
|
|
|
2,402
|
|
|
Total
current liabilities
|
|
|
2,861
|
|
|
|
2,496
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, excluding current maturities
|
|
|
7,778
|
|
|
|
5,206
|
|
|
Other non-current liabilities
|
|
|
1,328
|
|
|
|
1,309
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling interests
|
|
|
347
|
|
|
|
316
|
|
|
Crown Holdings shareholders' equity
|
|
|
765
|
|
|
|
543
|
|
|
Total equity
|
|
|
1,112
|
|
|
|
859
|
|
|
Total
|
|
$
|
13,079
|
|
|
$
|
9,870
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Cash Flows (Condensed &
Unaudited)
(in millions)
|
|
Three months ended March 31,
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
113
|
|
|
$
|
133
|
|
|
Depreciation and
amortization
|
|
|
|
65
|
|
|
|
59
|
|
|
Restructuring and other
|
|
|
|
13
|
|
|
|
(4)
|
|
|
Pension expense
|
|
|
|
1
|
|
|
|
5
|
|
|
Pension contributions
|
|
|
|
(5)
|
|
|
|
(13)
|
|
|
Stock-based compensation
|
|
|
|
6
|
|
|
|
4
|
|
|
Working capital changes and
other
|
|
|
|
(944)
|
|
|
|
(761)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
used for operating activities (1)
|
|
|
|
(751)
|
|
|
|
(577)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(92)
|
|
|
|
(107)
|
|
|
Beneficial interest in transferred
receivables
|
|
|
|
175
|
|
|
|
257
|
|
|
Proceeds from sale of assets
|
|
|
|
|
|
|
|
3
|
|
|
Other
|
|
|
|
(25)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by investing activities
|
|
|
|
58
|
|
|
|
153
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
Net change in debt
|
|
|
|
2,475
|
|
|
|
343
|
|
|
Dividends paid to noncontrolling
interests
|
|
|
|
|
|
|
|
(13)
|
|
|
Common stock repurchased
|
|
|
|
(1)
|
|
|
|
(133)
|
|
|
Other, net
|
|
|
|
(19)
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash
provided by financing activities
|
|
|
|
2,455
|
|
|
|
199
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
14
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
|
1,776
|
|
|
|
(221)
|
|
|
Cash and cash equivalents at January 1
|
|
|
|
435
|
|
|
|
576
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at March 31 (2)
|
|
|
$
|
2,211
|
|
|
$
|
355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted free cash flow is defined by the Company as net cash
used for operating activities plus beneficial
interest in transferred receivables less capital expenditures and certain other
items. A reconciliation from
net cash used for operating activities to adjusted free cash flow for the three months
ended March 31, 2018
and 2017 follows.
|
|
|
(2) Cash and cash equivalents includes $10 and $17 of restricted cash
at March 31, 2018 and 2017.
|
|
|
Three months ended March 31,
|
|
|
|
2018
|
|
|
|
|
2017
|
|
|
Net cash used for operating activities
|
|
|
|
($751)
|
|
|
|
|
($577)
|
|
|
Beneficial interest in transferred receivables (3)
|
|
|
|
175
|
|
|
|
|
257
|
|
|
Acquisition costs
|
|
|
|
3
|
|
|
|
|
|
|
|
Adjusted cash used for operating activities
|
|
|
|
( 573)
|
|
|
|
|
( 320)
|
|
|
Capital expenditures
|
|
|
|
( 92)
|
|
|
|
|
( 107)
|
|
|
Adjusted free cash flow
|
|
|
|
($665)
|
|
|
|
|
($427)
|
|
|
|
|
(3) Prior year cash flow has been restated to reflect new accounting
guidance related to the classification of
certain cash receipts associated with the Company's receivable securitization
programs. Certain receipts
previously reported in cash from operations are now reported in cash from investing
activities as
"Beneficial interest in transferred receivables".
|
|
Consolidated Supplemental Data (Unaudited)
|
|
(in millions, except per share data)
|
|
|
Reconciliation of Q1 and Full Year 2018 Adjusted Earnings per
Share
|
|
|
|
|
Q1
Actual
|
|
Full Year
Estimate
|
|
Previous adjusted earnings per share guidance
|
|
$0.80
|
(midpoint)
|
$4.30-$4.50
|
|
Mivisa and Empaque amortization (1)
|
|
0.06
|
|
0.22
|
|
Addition of Signode for nine months
|
|
|
|
0.69
|
|
All other
|
|
0.08
|
|
0.14
|
|
Revised actual/estimated adjusted earnings per share
|
|
$0.94
|
|
$5.35-$5.55
|
|
|
|
(1)
|
Add-back of amortization charges was not considered in previous
guidance.
|
|
Impact of Intangibles Amortization Charges Excluded from Adjusted
Earnings per Share
|
|
|
The following table provides information on the impact of the Company's
revised policy to exclude intangibles amortization charges when calculating adjusted net income and adjusted earnings per
share, including the impact on amounts reported in prior periods.
|
|
|
Acquisition
|
Q1
2017
|
|
Full year
2017
|
|
Q1
2018
|
|
Full year
2018 (3)
|
|
Mivisa and Empaque (2)
|
$10
|
|
$39
|
|
$11
|
|
$42
|
|
Signode
|
|
|
|
|
|
|
102
|
|
Pre-tax impact
|
10
|
|
39
|
|
11
|
|
144
|
|
Tax
|
(3)
|
|
(11)
|
|
(3)
|
|
(38)
|
|
After tax impact
|
$7
|
|
$28
|
|
$8
|
|
$106
|
|
|
|
|
|
|
|
|
|
|
Shares
|
139.0
|
|
135.6
|
|
133.8
|
|
134.3
|
|
|
|
|
|
|
|
|
|
|
Per share impact
|
$0.05
|
|
$0.21
|
|
$0.06
|
|
$0.79
|
|
|
|
(2)
|
Prior to this earnings release, intangibles amortization charges for Mivisa
and Empaque were not an excluded item when calculating adjusted net income and adjusted earnings per share. The
Company has revised its policy with the acquisition of Signode.
|
|
|
|
(3)
|
Full year 2018 amounts for Signode include intangibles amortization charges
for the period beginning April 3, 2018 through December 31, 2018. The amounts for Signode are estimates and subject
to change based on the final purchase price allocation.
|
|
Consolidated Supplemental Data (Unaudited)
|
|
(in millions, except per share data)
|
|
|
Reconciliation of First Quarter 2017 Segment Income
(1)
|
|
|
Segment
|
|
As Previously Reported
|
|
Pension and Postretirement
|
|
Intangibles Amortization
|
|
As Currently Reported
|
|
Americas Beverage
|
|
$105
|
|
($6)
|
|
$5
|
|
$104
|
|
European Beverage
|
|
51
|
|
(1)
|
|
|
|
50
|
|
European Food
|
|
47
|
|
|
|
4
|
|
51
|
|
Asia Pacific
|
|
39
|
|
|
|
|
|
39
|
|
Non-reportable
|
|
31
|
|
(4)
|
|
1
|
|
28
|
|
Corporate and unallocated
|
|
(45)
|
|
(1)
|
|
|
|
(46)
|
|
Total segment income
|
|
$228
|
|
($12)
|
|
$10
|
|
$226
|
|
|
|
(1)
|
Prior year segment income has been restated to reflect new accounting
guidance on the presentation of pension and postretirement expense and the Company's revised policy to exclude
intangibles amortization charges from segment income.
|
|
|
|
Historical Revenue for Signode
|
|
|
The information below presents Signode's revenue for 2017 and the first
quarter of 2018 at actual exchange rates prevailing during the periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
$588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
|
|
$526
|
|
|
|
|
|
|
|
|
|
|
Q2
|
|
575
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
565
|
|
|
|
|
|
|
|
|
|
|
Q4
|
|
566
|
|
|
|
|
|
|
|
|
|
|
|
|
$2,232
|
|
View original content:http://www.prnewswire.com/news-releases/crown-holdings-inc-reports-first-quarter-2018-results-300632565.html
SOURCE Crown Holdings, Inc.