³Ô¹Ï51±¬ÁÏÍø

TAMPA, Fla., Feb. 5, 2025 /PRNewswire/ -- ³Ô¹Ï51±¬ÁÏÍø Holdings, Inc. (NYSE: CCK), a worldwide leader in the design, manufacture and sale of packaging products for consumer goods and industrial products, today announced its financial results for the fourth quarter and full year ended December 31, 2024.

Highlights

Fourth Quarter

• Diluted earnings per share of $3.02
• Adjusted diluted earnings per share increased 28% to $1.59

Full Year

• Diluted earnings per share of $3.55
• Adjusted diluted earnings per share increased 9% to $6.41
• Operating cash flow of $1,192 million
• Adjusted free cash flow a record $814 million
• Net debt reduction of $878 million, adjusted net leverage ratio now 2.7x

2025 Outlook

• Expect full year 2025 adjusted diluted earnings per share in the range of $6.60-$7.00
• Expect full year 2025 adjusted free cash flow of approximately $800 million

"³Ô¹Ï51±¬ÁÏÍø delivered strong results in the fourth quarter, with segment income advancing 12% compared to the prior year," stated Timothy J. Donahue, Chairman, President and Chief Executive Officer. "Combined global beverage can segment income improved 17%, driven by global volume growth of 4%, led by shipment increases in Europe and North America, which grew 8% and 7%, respectively. The North American food can business also generated increased income during the quarter as a result of increased volumes while Transit Packaging saw lower volume and profitability as industrial activity remains sluggish.

"2024 was an excellent year overall, exceeding previous expectations. Segment income advanced nearly $100 million or 6% over the prior year, following a 7% improvement in 2023. Combined global beverage can segment income expanded 19% over the prior year, reflecting robust volume growth – 10% in Brazil and 7% in both North America and Europe – and excellent manufacturing performance. The Company generated record adjusted free cash flow of $814 million, supported by earnings growth combined with normalized capital expenditures. During the year, we reduced net debt by $878 million and, when combined with our record EBITDA, we ended 2024 with net leverage of 2.7x. The Company remains well-positioned for continued strong performances in 2025 and beyond with a balanced portfolio, optimized manufacturing footprint and strengthened balance sheet," concluded Donahue.

Fourth Quarter Results
Net sales in the fourth quarter were $2,903 million reflecting 4% higher global beverage can volumes and increased North American food can shipments.

Income from operations was $351 million in the fourth quarter compared to $259 million in the fourth quarter of 2023. Segment income in the fourth quarter of 2024 increased to $428 million compared to $382 million in the prior year, a result of improved results in global beverage operations.

During the fourth quarter, the Company received gross proceeds of $338 million and recorded a gain of $275 million from the sale of its equity investment in Eviosys.

Net income attributable to ³Ô¹Ï51±¬ÁÏÍø Holdings improved in the fourth quarter to $358 million from $32 million in the fourth quarter of 2023, mainly due to the $275 million gain on the Eviosys equity investment sale and improved segment income. Reported diluted earnings per share were $3.02 in the fourth quarter of 2024 compared to $0.27 in 2023. Adjusted diluted earnings per share were $1.59 compared to $1.24 in 2023.

Full Year Results
Net sales for 2024 were $11,801 million, as 5% higher global beverage can shipments were offset by the pass through of $196 million in lower material costs and lower volumes in Transit Packaging.

Income from operations was $1,419 million in 2024, compared to $1,269 million in 2023. Segment income for 2024 was $1,645 million, $99 million higher than 2023, driven primarily by improved results in global beverage operations.

Net income attributable to ³Ô¹Ï51±¬ÁÏÍø Holdings in 2024 was $424 million compared to $450 million in 2023. Reported diluted earnings per share were $3.55 compared to $3.76 in 2023 and adjusted diluted earnings per share were $6.41 compared to $5.86 in 2023.

Outlook
Kevin C. Clothier, Senior Vice President and Chief Financial Officer, stated, "Our multi-year global beverage can expansion program that commenced in 2019 has substantially been completed, resulting in a manufacturing platform that will allow us to meet existing and additional demand with significantly reduced levels of capital expenditures."

The Company currently estimates full year 2025 adjusted diluted earnings per share to be in the range of $6.60 to $7.00 compared to $6.41 in 2024. The adjusted effective tax rate is expected to approximate 25% with adjusted free cash flow of approximately $800 million after estimated capital spending of $450 million.

First quarter adjusted diluted earnings per share is expected to be in the range of $1.20 to $1.30.

Non-GAAP Measures
Segment income, adjusted free cash flow, net debt, adjusted net leverage ratio, adjusted net income, the adjusted effective tax rate, adjusted diluted earnings per share, net interest expense, EBITDA and adjusted EBITDA 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, cash flow, leverage ratio, net income, effective tax rates, diluted earnings per share or interest expense and interest income 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 and adjusted net leverage ratio as the principal measures of its liquidity. The Company considers all 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 free cash flow and adjusted net leverage ratio provide meaningful measures 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 dividends. The Company believes that adjusted net income, segment 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. Segment income, adjusted free cash flow, net debt, adjusted net leverage ratio, adjusted net income, the adjusted effective tax rate, adjusted diluted earnings per share, net interest expense, EBITDA and adjusted EBITDA are derived from the Company's Consolidated Statements of Operations, Cash Flows and Consolidated Balance Sheets, as applicable, and reconciliations to segment income, adjusted free cash flow, net debt, adjusted net leverage ratio, adjusted net income, the adjusted effective tax rate, adjusted diluted earnings per share and adjusted EBITDA can be found within this release. Reconciliations of estimated adjusted diluted earnings per share, adjusted free cash flow, adjusted effective tax rate and adjusted net leverage ratio for the first quarter and full year of 2025 to estimated diluted earnings per share, operating cash flow, the effective tax rate and income from operations 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, the adjusted effective tax rate and adjusted net leverage ratio and could have a significant impact on earnings per share, and the effective tax rate on a GAAP basis: gains or losses on the sale of businesses or other assets, restructuring and other costs, asset impairment charges, asbestos-related charges, losses from early extinguishment of debt, pension settlement and curtailment charges, the tax and noncontrolling interest impact of the items above, and the impact of tax law changes or other tax matters.

Conference Call
The Company will hold a conference call tomorrow, February 6, 2025 at 9:00 a.m. (EST) 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, . A replay of the conference call will be available for a one-week period ending at midnight on February 13, 2025. The telephone numbers for the replay are 203-369-3997 or toll free 800-876-4955.

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 Company's ability to continue to operate its plants, distribute its products and maintain its supply chain; the future impact of currency translation; the continuation of performance and market trends in 2025, including consumer preference for beverage cans and global beverage can demand; the future impact of inflation, including the potential for higher interest rates and energy prices and the Company's ability to recover raw material and other inflationary costs; future demand for food cans; the Company's ability to deliver continuous operational improvement; future demand in the Transit Packaging segment and the Company's ability to decrease capital expenditures and increase cash flow and to further reduce net leverage, 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, 2023 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.

³Ô¹Ï51±¬ÁÏÍø Holdings, Inc., through its subsidiaries, is a worldwide leader in the design, manufacture and sale of packaging products for consumer goods and industrial products. World headquarters are located in Tampa, Florida.

For more information, contact:
Kevin C. Clothier, Senior Vice President and Chief Financial Officer, (215) 698-5281
Thomas T. Fischer, Vice President, Investor Relations and Corporate Affairs, (215) 552-3720

Unaudited Consolidated Statements of Operations, Balance Sheets, Statements of Cash Flows, Segment Information and Supplemental Data follow.

 

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 and provisions for restructuring and other.

 

 

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.

 

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.

 

 

 

Adjusted free cash flow is defined by the Company as net cash from operating activities less capital expenditures and certain other items. A reconciliation of net cash from operating activities to adjusted free cash flow for the three months and year ended December 31, 2024 and 2023 follows.

 

 

 

 

 

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