Packaging products company Crown Holdings Inc (CCK) on Thursday reported a profit for the third quarter that more than doubled from last year, reflecting higher revenues and a tax benefit.
John Conway, Chairman and Chief Executive Officer of Crown Holdings, said, "The integration of the Mivisa acquisition is proceeding according to plan and European food can demand in the third quarter was strong. Demand for beverage cans was robust throughout our developing market portfolio and was particularly strong in Southeast Asia and Turkey."
The company's net income for the third quarter was $244 million or $1.76 per share, up from $101 million or $0.73 per share in the year-ago period.
The latest quarter's results included an income tax benefit of $90 million in connection with the reversal of tax valuation allowances in France.
In addition, the company issued €650 million of 4.0 percent senior notes due 2022 and recorded a charge of $27 million net of tax, for premiums paid and the write off of deferred financing fees in connection with the redemption of its outstanding €500 million senior notes due 2018.
Excluding items, adjusted earnings for the quarter were $1.36 per share, compared to $1.04 per share in the year-ago period. On average, thirteen analysts polled by Thomson Reuters expected the company to report earnings of $1.21 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter grew 8 percent to $2.59 billion from $2.39 billion in the prior-year quarter, mainly due to the impact of the Mivisa acquisition. Analysts had a consensus revenue estimate of $2.61 billion for the quarter.
Sales growth was seen in Asia Pacific and European Beverage segments, while sales in the Americas Beverage, North America Food and European Food businesses declined.
In September, Philadelphia, Pennsylvania-based Crown said it has entered into a definitive agreement with Dutch brewer Heineken N.V. (HINKY.PK) to buy its Mexican beverage packaging company Empaque for a cash consideration of $1.225 billion.
The company expects Empaque to contribute between $0.15 and $0.20 to Crown's earnings per share on an annual basis before synergies, but including estimated amortization and depreciation for purchase accounting adjustments.
CCK closed Thursday's trading at $44.87, up $1.02 or 2.33 percent on a volume of 1.79 million shares.
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