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.