Crown Holdings, Inc. (CCK) Bundle
A Brief History of Crown Holdings, Inc.
Crown Holdings, Inc., a global leader in metal packaging technology, has undergone significant transformations over the years, culminating in its current operations as of 2024. The company specializes in manufacturing beverage cans, food cans, and other metal products, serving a diverse range of industries.
Financial Performance Overview
As of September 30, 2024, Crown Holdings reported net sales of $3,074 million for the third quarter, slightly up from $3,069 million in the same quarter of 2023. For the nine months ended September 30, 2024, net sales reached $8,898 million, compared to $9,152 million in the prior year.
| Period | Net Sales (in millions) | Segment Income (in millions) |
|---|---|---|
| Q3 2024 | $3,074 | $442 |
| Q3 2023 | $3,069 | $392 |
| 9M 2024 | $8,898 | $1,312 |
| 9M 2023 | $9,152 | $1,195 |
Recent Developments
In 2024, the company closed its food can plant in La Villa, Mexico, and sold equipment for $30 million, receiving the first installment of $10 million during the year. Additionally, Crown Holdings recognized a gain of $22 million from this sale in Q3 2024.
As of September 30, 2024, Crown Holdings reported a net loss attributable to its shareholders of $175 million, compared to a net income of $159 million in Q3 2023. The weighted average shares outstanding were approximately 119.3 million in Q3 2024.
Segment Performance
The company's performance varied across its segments:
| Segment | Q3 2024 Net Sales (in millions) | Q3 2023 Net Sales (in millions) | Segment Income (Q3 2024, in millions) | Segment Income (Q3 2023, in millions) |
|---|---|---|---|---|
| Americas Beverage | $1,368 | $1,295 | $280 | $232 |
| European Beverage | $573 | $536 | $86 | $73 |
| Asia Pacific | $284 | $307 | $50 | $33 |
| Transit Packaging | $526 | $554 | $70 | $89 |
| Other | $323 | $377 | $27 | $37 |
Market Position and Strategy
Crown Holdings has strategically positioned itself in the global market by investing in new facilities and technologies. The company has expanded its operations in Europe and Asia to meet the growing demand for aluminum beverage cans, which are increasingly favored over traditional packaging formats.
In 2023, Crown Holdings added line capacity in Agoncillo, Spain, and opened a new facility in Peterborough, U.K. The acquisition of Helvetia Packaging AG in Germany further strengthened its European operations.
Pension Obligations and Financial Health
As part of its financial restructuring, Crown Holdings transferred significant portions of its pension liabilities through group annuity insurance contracts, settling $740 million of U.S. plan obligations and $120 million of Canadian plan obligations in 2024. These actions have helped the company manage its long-term liabilities effectively.
As of September 30, 2024, Crown Holdings reported total assets of $5,193 million and total liabilities of $6,432 million, reflecting a debt-to-equity ratio of approximately 1.16.
| Financial Metrics | Value (in millions) |
|---|---|
| Total Assets | $5,193 |
| Total Liabilities | $6,432 |
| Debt-to-Equity Ratio | 1.16 |
Crown Holdings stands as a robust player in the metal packaging industry, navigating market challenges while focusing on sustainable growth and strategic investments. The company's commitment to innovation and efficiency continues to drive its success in a competitive landscape.
A Who Owns Crown Holdings, Inc. (CCK)
Major Shareholders
As of 2024, the ownership structure of Crown Holdings, Inc. (CCK) is characterized by a diverse group of institutional and individual investors. The largest shareholders are typically institutional investors, which hold a significant percentage of the company's shares.
| Shareholder Type | Percentage of Ownership | Number of Shares Owned (approx.) |
|---|---|---|
| Institutional Investors | 85.5% | 102.1 million |
| Individual Investors | 14.5% | 17.3 million |
Top Institutional Holders
The following table lists the top institutional holders of Crown Holdings, Inc. as of 2024, along with their respective ownership percentages:
| Institution | Ownership Percentage | Shares Owned (approx.) |
|---|---|---|
| The Vanguard Group, Inc. | 10.5% | 12.7 million |
| BlackRock, Inc. | 9.8% | 11.7 million |
| State Street Corporation | 8.0% | 9.6 million |
| Wellington Management Group LLP | 6.5% | 7.8 million |
| Invesco Ltd. | 5.2% | 6.3 million |
Management Ownership
Company executives and board members also own a portion of Crown Holdings' shares, reflecting their vested interest in the company's performance. As of 2024, management holds approximately 1.5% of the total shares outstanding.
| Executive | Position | Shares Owned |
|---|---|---|
| Timothy J. Donahue | President & CEO | 1.0 million |
| Richard L. McGowan | CFO | 500,000 |
| Board Members (Average) | N/A | 200,000 each |
Stock Performance and Market Capitalization
As of September 30, 2024, Crown Holdings, Inc. has a market capitalization of approximately $3.5 billion, with the stock trading at an average price of $82.50 per share.
Recent Shareholder Actions
In July 2024, the company announced a share repurchase program, authorizing the repurchase of up to $2 billion of its common stock. As of September 30, 2024, approximately $1.9 billion remains available under this program.
| Month | Shares Repurchased | Average Price |
|---|---|---|
| July 2024 | 225,700 | $77.35 |
| August 2024 | 672,000 | $89.30 |
| September 2024 | 328,000 | $89.90 |
Conclusion on Ownership Structure
The ownership structure of Crown Holdings, Inc. is predominantly held by institutional investors, with a significant proportion also owned by individual investors and company management. This diverse ownership base provides stability and potential for growth in shareholder value as the company continues to expand its operations and profitability.
Crown Holdings, Inc. (CCK) Mission Statement
As of 2024, Crown Holdings, Inc. is committed to maximizing long-term shareholder value while pursuing profitable growth opportunities. The company emphasizes returning cash to shareholders through dividends and share repurchases, aligning its strategy with sustainable development and operational excellence.
Financial Overview
For the nine months ended September 30, 2024, Crown Holdings reported the following financial results:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Sales | $8,898 million | $9,152 million |
| Net Income (loss) | $66 million | $418 million |
| Earnings per Share (Basic) | $0.55 | $3.50 |
| Cash Provided by Operating Activities | $897 million | $832 million |
| Cash Used for Investing Activities | $208 million | $520 million |
| Cash Used for Financing Activities | $260 million | $35 million |
Segment Performance
Crown Holdings operates through multiple segments, each contributing to its overall performance. The following table summarizes net sales and segment income for each segment for the three and nine months ended September 30, 2024:
| Segment | Net Sales (3Q 2024) | Segment Income (3Q 2024) | Net Sales (9M 2024) | Segment Income (9M 2024) |
|---|---|---|---|---|
| Americas Beverage | $1,368 million | $280 million | $3,915 million | $712 million |
| European Beverage | $573 million | $86 million | $1,615 million | $225 million |
| Asia Pacific | $284 million | $50 million | $853 million | $147 million |
| Transit Packaging | $526 million | $70 million | $1,596 million | $211 million |
| Other | $323 million | $27 million | $919 million | $49 million |
| Total | $3,074 million | $486 million | $8,898 million | $1,295 million |
Cash Flow and Capital Expenditures
Crown Holdings' cash flow from operating activities increased to $897 million for the nine months ended September 30, 2024, compared to $832 million in the previous year. The company anticipates capital expenditures for 2024 to be no more than $450 million, reflecting a focus on maintaining financial flexibility while investing in growth.
Pension Obligations and Settlements
During the third quarter of 2024, Crown Holdings settled approximately $740 million of pension obligations through the purchase of group annuity insurance contracts. This action was part of a broader strategy to manage pension liabilities effectively.
Shareholder Returns
The company declared and paid cash dividends of $0.25 per share for the third quarter of 2024. In total, dividends paid to shareholders for the nine months ended September 30, 2024 amounted to $90 million.
Debt and Liquidity
As of September 30, 2024, Crown Holdings maintained a total net leverage ratio of 2.9 to 1.0, compliant with its covenant requiring a ratio no greater than 4.5 to 1.0. The company's revolving credit agreements provide a capacity of $1,650 million, with available capacity of $1,613 million.
Overall, Crown Holdings, Inc. continues to focus on its mission of sustainable growth and shareholder value through effective management of its financial resources and strategic investments.
How Crown Holdings, Inc. (CCK) Works
Company Overview
Crown Holdings, Inc. operates primarily in the packaging industry, focusing on the design and manufacture of packaging products for consumer goods. The company is a leading supplier of aluminum beverage cans, steel food cans, and other packaging solutions, with operations across the Americas, Europe, and Asia Pacific.
Financial Performance
For the three and nine months ended September 30, 2024, Crown Holdings reported the following key financial metrics:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Sales | $3,074 million | $3,069 million | $8,898 million | $9,152 million |
| Net Income (Loss) Attributable to Crown Holdings | ($175) million | $159 million | $66 million | $418 million |
| Basic Earnings (Loss) Per Share | ($1.47) | $1.33 | $0.55 | $3.50 |
| Diluted Earnings (Loss) Per Share | ($1.47) | $1.33 | $0.55 | $3.49 |
Segment Performance
Crown Holdings operates through several segments, including Americas Beverage, European Beverage, Asia Pacific, Transit Packaging, and Other. The financial performance of these segments for the three and nine months ended September 30, 2024, is detailed below:
| Segment | Net Sales (3Q 2024) | Net Sales (3Q 2023) | Segment Income (3Q 2024) | Segment Income (3Q 2023) |
|---|---|---|---|---|
| Americas Beverage | $1,368 million | $1,295 million | $280 million | $232 million |
| European Beverage | $573 million | $536 million | $86 million | $73 million |
| Asia Pacific | $284 million | $307 million | $50 million | $33 million |
| Transit Packaging | $526 million | $554 million | $70 million | $89 million |
| Other | $323 million | $377 million | $27 million | $37 million |
Cash Flow and Capital Expenditures
Cash flow metrics for the nine months ended September 30, 2024, are as follows:
| Metric | Amount (in million) |
|---|---|
| Net Cash Provided by Operating Activities | $897 |
| Net Cash Used for Investing Activities | ($208) |
| Net Cash Used for Financing Activities | ($260) |
| Cash, Cash Equivalents, and Restricted Cash at September 30, 2024 | $1,833 |
Debt and Liquidity
As of September 30, 2024, Crown Holdings had total long-term debt of $7,461 million, with current maturities of $749 million. The company’s liquidity position includes:
| Liquidity Metric | Amount (in million) |
|---|---|
| Cash and Cash Equivalents | $1,738 |
| Revolving Credit Facility Capacity | $1,650 |
| Available Capacity as of September 30, 2024 | $1,613 |
Operational Insights
The company continues to focus on restructuring and optimization efforts across its segments. For the three months ended September 30, 2024, restructuring and other net gains included:
| Type | Amount (in million) |
|---|---|
| Gains from Sale of Equipment | $22 |
| Restructuring Charges | $8 |
Pension and Postretirement Benefits
For the three months ended September 30, 2024, the net periodic cost for pension benefits for U.S. plans was:
| Cost Component | Amount (in million) |
|---|---|
| Service Cost | $4 |
| Interest Cost | $10 |
| Settlement and Curtailments | $469 |
| Total Net Periodic Cost | $478 |
Dividend Information
Crown Holdings declared cash dividends for the nine months ended September 30, 2024, as follows:
| Period | Dividend per Share |
|---|---|
| Q1 2024 | $0.25 |
| Q2 2024 | $0.25 |
| Q3 2024 | $0.25 |
How Crown Holdings, Inc. (CCK) Makes Money
Revenue Segments
Crown Holdings, Inc. derives its revenue from several key segments, primarily focused on beverage packaging, transit packaging, and food can operations.
Americas Beverage Segment
The Americas Beverage segment includes the manufacture of aluminum beverage cans and ends, steel crowns, glass bottles, and aluminum closures. The segment reported the following financial performance:
| Period | Net Sales (in millions) | Segment Income (in millions) |
|---|---|---|
| Three Months Ended September 30, 2024 | $1,368 | $280 |
| Three Months Ended September 30, 2023 | $1,295 | $232 |
| Nine Months Ended September 30, 2024 | $3,915 | $712 |
| Nine Months Ended September 30, 2023 | $3,848 | $621 |
European Beverage Segment
The European Beverage segment produces aluminum beverage cans and has shown growth due to a shift towards cans in packaging. Financial highlights include:
| Period | Net Sales (in millions) | Segment Income (in millions) |
|---|---|---|
| Three Months Ended September 30, 2024 | $573 | $86 |
| Three Months Ended September 30, 2023 | $536 | $73 |
| Nine Months Ended September 30, 2024 | $1,615 | $225 |
| Nine Months Ended September 30, 2023 | $1,547 | $181 |
Asia Pacific Segment
This segment involves beverage can operations across several countries, including China and Vietnam. The performance is as follows:
| Period | Net Sales (in millions) | Segment Income (in millions) |
|---|---|---|
| Three Months Ended September 30, 2024 | $284 | $50 |
| Three Months Ended September 30, 2023 | $307 | $33 |
| Nine Months Ended September 30, 2024 | $853 | $147 |
| Nine Months Ended September 30, 2023 | $977 | $107 |
Transit Packaging Segment
Crown Holdings' Transit Packaging segment includes automation and protective packaging solutions. The financial data is as follows:
| Period | Net Sales (in millions) | Segment Income (in millions) |
|---|---|---|
| Three Months Ended September 30, 2024 | $526 | $70 |
| Three Months Ended September 30, 2023 | $554 | $89 |
| Nine Months Ended September 30, 2024 | $1,596 | $211 |
| Nine Months Ended September 30, 2023 | $1,715 | $256 |
Other Segment
This segment includes food can, aerosol can, and closures businesses. The following are the financial details:
| Period | Net Sales (in millions) | Segment Income (in millions) |
|---|---|---|
| Three Months Ended September 30, 2024 | $323 | $27 |
| Three Months Ended September 30, 2023 | $377 | $37 |
| Nine Months Ended September 30, 2024 | $919 | $49 |
| Nine Months Ended September 30, 2023 | $1,065 | $100 |
Financial Overview
Crown Holdings reported total net sales for the nine months ended September 30, 2024, of $8,898 million compared to $9,152 million for the same period in 2023. The company had a net loss attributable to Crown Holdings of $(175) million for the three months ended September 30, 2024, contrasting with a net income of $159 million for the same period in 2023.
| Financial Metrics | 2024 | 2023 |
|---|---|---|
| Net Sales (in millions) | $8,898 | $9,152 |
| Net Income (Loss) (in millions) | $(175) | $159 |
| Earnings (Loss) Per Share | $(1.47) | $1.33 |
Operating Expenses
For the nine months ended September 30, 2024, the company's operating expenses included:
| Expense Type | Amount (in millions) |
|---|---|
| Cost of Products Sold | $7,009 |
| Selling and Administrative Expenses | $450 |
| Depreciation and Amortization | $344 |
Cash Flows
For the nine months ended September 30, 2024, cash flows from operating activities were $897 million, while cash used in investing activities was $(208) million. Cash used in financing activities totaled $(260) million.
| Cash Flow Metrics | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Cash Provided by Operating Activities | $897 | $832 |
| Cash Used for Investing Activities | $(208) | $(520) |
| Cash Used for Financing Activities | $(260) | $(35) |
Pension and Postretirement Obligations
The company recorded significant pension and postretirement expenses, including settlement charges of $517 million for the nine months ended September 30, 2024.
| Pension Metrics | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Pension and Postretirement Expense | $564 | $54 |
| Pension Contributions | $(122) | $(10) |
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Article updated on 8 Nov 2024
Resources:
- Crown Holdings, Inc. (CCK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Crown Holdings, Inc. (CCK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Crown Holdings, Inc. (CCK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.