Crown Holdings Reports Mixed Q3 Results, Net Loss Amid Restructuring Charges and Pension Settlement Costs

Crown Holdings, Inc. reported mixed financial results for the third quarter and the first nine months of 2024, reflecting both revenue stability and significant challenges in profitability. For the three months ended September 30, 2024, net sales reached $3,074 million, a slight increase from $3,069 million in the same period of 2023. However, for the nine months ended September 30, 2024, net sales declined to $8,898 million from $9,152 million year-over-year.

Income from operations improved in the third quarter, rising to $444 million from $374 million in 2023, and for the nine-month period, it increased to $1,068 million from $1,010 million. Despite this operational growth, net income for the third quarter fell sharply to a loss of $132 million, compared to a profit of $200 million in the prior year. For the nine months, net income also decreased significantly to $168 million from $509 million in 2023. This decline in net income was attributed to restructuring charges and pension settlement costs totaling $517 million, which included $469 million related to U.S. defined benefit plans.

Segment performance varied, with the Americas Beverage segment showing resilience, reporting net sales of $1,368 million for the third quarter, up from $1,295 million in 2023, driven by a 10% increase in shipments. Conversely, the Transit Packaging segment experienced a decline in net sales to $526 million from $554 million, attributed to lower shipment volumes and unfavorable foreign currency translation.

Crown Holdings undertook strategic actions, including the closure of its food can plant in La Villa, Mexico, and the sale of related equipment for $30 million. The company also authorized a new stock repurchase program of $2,000 million through 2027, replacing a previous $3,000 million program set to expire in 2024. Additionally, the company reported a significant reduction in depreciation expenses due to revised useful lives of its assets, which contributed to improved operational efficiency.

As of September 30, 2024, cash and cash equivalents increased to $1,738 million from $1,310 million at the end of 2023, while total assets rose slightly to $15,095 million. The company’s total equity also improved to $3,045 million from $2,864 million. However, the net leverage ratio stood at 2.9 to 1.0, indicating a need for continued focus on debt management.

Overall, Crown Holdings is navigating a complex landscape of operational improvements and significant restructuring costs, impacting its profitability while maintaining stable revenue streams in key segments.