USA – Global rigid packaging supplier Crown Holdings has reported a net income of US$157 million for the second quarter (Q2) of the financial year 2023 (FY23), a decline of 46.7% from US$295 million for the same period in FY22.
The company’s net sales for this quarter, which ended on 30 June 2023, were US$3.10 billion versus net sales of US$3.51 billion in Q2 FY22.
The company witnessed favorable foreign currency change of US$11 million and higher beverage can volumes in its Americas Beverage segment.
However, the growth in the Americas Beverage segment was offset by the pass-through of approximately US$288 million in lower volumes and lower material costs recorded across the company’s other business segments.
The income from operations for this year’s Q2 totaled US$367 million while the same was US$466 million a year ago.
Crown’s interest expense this quarter was US$110 million, compared with US$64 million in Q2 FY22, signifying that the company has higher outstanding debt and higher interest rates.
The diluted and adjusted diluted earnings per share in Q2 FY23 were US$1.31 and US$1.68, respectively.
Crown’s chair, president, and CEO Timothy Donahue said: “The company performed well during the second quarter, as strong results in European Beverage and Transit Packaging offset softer than expected beverage can volumes in Asia and sluggish aerosol can demand in North America.”
The company’s net sales for the first half (H1) or six months of FY23 has also declined from US$6.67 billion in FY22 to US$6.08 billion in FY23.
The net income for the reported H1 was US$259 million while income from operations during H1 FY23 stood at US$636 million, against US$810 million in H1 FY22.
Donahue added: “As we near completion in late 2023 of the multiyear program to profitably expand global beverage can production capacity to support expanded customer requirements, the company expects capital expenditures to be significantly reduced in 2024 and 2025 from this year’s US$900 million to approximately US$500 million and we plan to use increased cash flow to pay down debt and return capital to shareholders.”
Stora Enso’s Q2 FY23 sales drop by 22%
Meanwhile, Finnish pulp and paper manufacturer Stora Enso has reported a decline in its sales in the second quarter (Q2) of financial year 2023 (FY23), as weak demand persists.
Sales at Enso dropped to €2.37 billion (Us$2.63bn) in Q2 FY23, from €3.05 billion (US$3.37bn) in the prior year’s same quarter.
During the quarter, the company saw its operational earnings before income and taxes (EBIT) decline by 93% to €37 million (US$40.94m) while its operational EBIT margin fell by 1.6%.
Its operational earnings before interest, taxes, depreciation and amortization were €198 million (US$219.09m) in Q2 FY23, down 70.1% from €663 million (US$733.61m) in the corresponding period a year ago.
Enso also reported a loss per share of €0.29 in Q2 FY23 against earnings per share of €0.38 in the same period a year ago.
Enso’s president and CEO Annica Bresky said: “The weak market demand further worsened in the second quarter.”
“Unfortunately, we see no imminent signs of improved market demand and we expect destocking to persist for most of our segments also in the second half of 2023. In this turbulent market we must adapt.
“We continue to focus on what we can impact and control: investing and restructuring to improve our future business profitability, cost-competitiveness and asset footprint, controlling our costs, and curtailing production to manage our own and customer inventories.”
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