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Crown Holdings Reports First Quarter 2013 Results

              Crown Holdings Reports First Quarter 2013 Results

PR Newswire

PHILADELPHIA, April 17, 2013

PHILADELPHIA, April 17, 2013 /PRNewswire/ --Crown Holdings, Inc. (NYSE: CCK)
today announced its financial results for the first quarter ended March 31,
2013.

First Quarter Highlights

  oIncome per diluted share $0.28; Before Certain Items $0.50
  oGlobal beverage can volumes grew 6% driven by strong growth in Brazil and
    Asia Pacific
  oSecond production lines in Putian, China and Bangi, Malaysia were
    commercialized

Net sales in the first quarter grew to $1,973 million over the $1,947 million
in the first quarter of 2012, primarily driven by increased global beverage
can sales unit volumes more than offsetting lower raw material costs.

First quarter gross profit improved to $299 million over the $287 million in
the 2012 first quarter, primarily due to increased beverage can sales and
reduced depreciation expense, partially offset by lower profits in the
European Food segment.

Selling and administrative expenses were $104 million in the first quarter
compared to $106 million in the same period last year.

Segment income (a non-GAAP measure defined by the Company as gross profit less
selling and administrative expense) increased to $195 million in the first
quarter compared to $181 million in the first quarter of 2012 primarily due to
improved gross profit.

Commenting on the quarter, John W. Conway, Chairman and Chief Executive
Officer, stated, "Overall we are off to a strong and promising 2013.
Globally, beverage can volumes were up 6% in the first quarter, primarily
driven by growth in Brazil and Asia Pacific. This is on top of strong double
digit improvements for both in the same period last year, and reflects our
capacity expansion projects in these growth markets over the last several
years.European Beverage also posted a strong start to the year with a 4%
increase in sales volumes, while European Food had 2% lower sales volumes.

"During the quarter, we commercialized second beverage can lines in Putian,
China and Bangi, Malaysia, both on time and budget. In the second quarter we
will be opening new beverage can plants in Danang, Vietnam and Bangkok,
Thailand; and, in the third quarter, we will begin production at our new plant
in Sihanoukville, Cambodia. We have begun construction of a new facility in
northern Brazil in the city of Teresina and expect to begin commercial
shipments early next year," Mr. Conway added.

In January 2013, the Company issued $1.0 billion principal amount of 4.5%
senior unsecured notes due 2023. In connection with the issuance, the Company
redeemed its outstanding $400 million 7.625% senior notes due 2017, repaid
$500 million of indebtedness under its senior secured term loan facilities,
and recognized a charge of $38 million for premiums paid and the write off of
deferred financing fees and unamortized discounts.

Interest expense in the first quarter was $60 million compared to $58 million
in the first quarter of 2012, primarily due to higher average debt
outstanding.

Net income attributable to Crown Holdings in the first quarter was $41
million, compared to $69 million in the first quarter of 2012. Reported
earnings per diluted share were $0.28 in the first quarter of 2013 compared to
$0.46 in the 2012 first quarter. Net income per diluted share before certain
items was $0.50 compared to $0.46 in 2012.

A reconciliation from net income and income per diluted share to net income
before certain items and income per diluted share before certain items is
provided below.

Non-GAAP Measures
Segment income and free cash flow are not defined terms under U.S. generally
accepted accounting principles (non-GAAP measures). In addition, the
information presented regarding net income before certain items and income
before certain items per diluted share does not conform to GAAP and includes
non-GAAP measures. Non-GAAP measures should not be considered in isolation or
as a substitute for net income, income per diluted 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 and free cash flow as the principal measures
of performance of its operations and for the allocation of resources. 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 net income before certain items and income before
certain items per diluted share can be used to evaluate the Company's
operations. Segment income, free cash flow, net income before certain items
and income before certain items per diluted 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, free cash flow, net income before certain items and income before
certain items per diluted share can be found within this release.

Conference Call
The Company will hold a conference call tomorrow, April 18, 2013 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 (212) 519-0813 or toll-free (888) 994-8798 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 web site,
www.crowncork.com. A replay of the conference call will be available for a
one-week period ending at midnight on April 25. The telephone numbers for the
replay are (203) 369-0832 or toll free (866) 422-8156.

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
extent of future demand for the Company's products in Brazil, Southeast Asia,
China and other emerging markets and the Company's ability to successfully
commercialize new production capacity in Brazil, Cambodia, China, Malaysia,
Thailand and Vietnam, andto realize its plans for expanding beverage can
production in emerging markets 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, 2012 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 supplier of
packaging products to consumer marketing companies around the world. World
headquarters are located in Philadelphia, Pennsylvania.

For more information, contact:
Thomas A. Kelly, Senior Vice President and Chief Financial Officer, (215)
698-5341, or
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,
                                               2013             2012
Net sales                                      $1,973           $1,947
Cost of products sold                          1,640            1,618
Depreciation and amortization                  34               42
Gross profit (1)                               299              287
Selling and administrative expense             104              106
Provision for restructuring                    4
Loss from early extinguishment of debt         38
Interest expense                               60               58
Interest income                                (2)              (2)
Translation and foreign exchange adjustments   2                3
Income before income taxes                     93               122
Provision for income taxes                     24               32
Equity earnings                                (2)
Net income                                     67               90
Net income attributable to noncontrolling      (26)             (21)
interests
Net income attributable to Crown Holdings      $41              $69
Earnings per share attributable to Crown
Holdings

 common shareholders:
 Basic                                     $0.29            $0.47
 Diluted                                   $0.28            $0.46
Weighted average common shares outstanding:
 Basic                                    142,496,422      147,813,672
 Diluted                                  144,026,054      150,017,661
Actual common shares outstanding               143,774,872      148,825,503


(1) A reconciliation from gross profit to segment income follows.



Consolidated Supplemental Financial Data (Unaudited)
(in millions)
Reconciliation from Gross Profit 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 gross profit less selling and
administrative expense. A reconciliation from gross profit to segment income
for the three months ended March 31, 2013 and 2012 follows:



                                                      Three Months Ended

                                                      March 31,
                                                      2013       2012
Gross profit  $  299     $  287
Selling and administrative expense                       104        106
Segment income                                        $  195     $  181

Segment Information
                                       Three Months Ended March 31,
Net Sales                              2013             2012
Americas Beverage                      $    552         $   534
North America Food                          197             200
European Beverage                           371             362
European Food                               376             402
Asia Pacific                                276             225
 Total reportable segments              1,772           1,723
Non-reportable segments                     201             224
 Total net sales                 $    1,973       $   1,947
Segment Income
Americas Beverage                      $    76          $   69
North America Food                          31              32
European Beverage                           51              42
European Food                               32              40
Asia Pacific                                33              31
 Total reportable segments              223             214
Non-reportable segments                     22              23
Corporate and other unallocated items       (50)            (56)
 Total segment income            $    195         $   181



Consolidated Supplemental Data (Unaudited)
(in millions, except per share data)
Reconciliation from Net Income and Income Per Diluted Common Share to Net
Income before Certain Items and Income Per Diluted Common Share before Certain
Items
The following table reconciles reported net income and diluted earnings per
share attributable to the Company to net income before certain items and
income per diluted common share before certain items, as used elsewhere in
this release.

                                                         Three Months Ended
                                                         March 31,
                                                         2013       2012
  Net income attributable to Crown Holdings, as reported $  41      $ 69
  Items, net of tax:
   Provision for restructuring [ ]^(1)                 3
   Loss from early extinguishment of debt ^(2)          28
  Net income before the above items                      $  72      $ 69
  Income per diluted common share as reported            $  0.28    $ 0.46
  Income per diluted common share before the above items $  0.50    $ 0.46
  Effective tax rate as reported                            25.8%     26.2%
  Effective tax rate before the above items                 25.9%     26.2%

Net income before certain items, income per diluted common share before
certain items and the effective tax rate before certain items are non-GAAP
measures and are not meant to be considered in isolation or as a substitute
for net income, income per diluted common 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 quarter of 2013, the Company recorded a charge of $4
million ($3 million, net of tax, or $0.02 per diluted share) for costs related
to previously announced restructuring actions.


(2) In the first quarter of 2013, the Company recorded a charge of $38
million ($28 million net of tax, or $0.20 per diluted share) for premiums paid
and the write off of deferred financing fees in connection with the redemption
of its outstanding $400 million senior notes due 2017 and repayment of $500
million of indebtedness under its senior secured term loan facilities.



Consolidated Balance Sheets (Condensed & Unaudited)

(in millions)
March 31,                                     2013      2012
Assets
Current assets
 Cash and cash equivalents                  $ 304     $ 250
 Receivables, net                             1,155     1,066
 Inventories                                  1,352     1,313
 Prepaid expenses and other current assets    193       195
Total current assets                  3,004     2,824
Goodwill                                         1,937     1,998
Property, plant and equipment, net               1,988     1,796
Other non-current assets                         765       560
 Total                              $ 7,694   $ 7,178
Liabilities and equity
Current liabilities
 Short-term debt                            $ 267     $ 164
 Current maturities of long-term debt         129       66
 Accounts payable and accrued liabilities     1,910     1,863
 Total current liabilities            2,306     2,093
Long-term debt, excluding current maturities     3,708     3,685
Other non-current liabilities                    1,516     1,482
Noncontrolling interests                         292       242
Crown Holdings shareholders' deficit             (128)     (324)
Total equity/(deficit)                           164       (82)
 Total                              $ 7,694   $ 7,178



Consolidated Statements of Cash Flows (Condensed & Unaudited)

(in millions)
Three months ended March 31,          2013                       2012
Cash flows from operating
activities
 Net income                       $    67                    $   90
 Depreciation and                      34                        42
amortization
 Provision for                         4
restructuring
 Pension expense                       19                        24
 Pension contributions                 (20)                      (18)
 Stock-based compensation              10                        10
 Working capital changes               (546)                     (537)
and other
 Net cash used for               (432)                     (389)
operating activities (A)
Cash flows from investing
activities
 Capital expenditures                  (63)                      (62)
 Insurance proceeds                    8                         23
 Other                                 3                         (9)
 Net cash used for               (52)                      (48)
investing activities
Cash flows from financing
activities
 Net change in debt                    460                       351
 Common stock repurchased              (6)                       (7)
 Dividends paid to                     (8)                       (16)
noncontrolling interests
 Other, net                            (7)                       10
 Net cash provided               439                       338
by financing activities
Effect of exchange rate
changes on cash and cash                   (1)                       7
equivalents
Net change in cash and cash                (46)                      (92)
equivalents
Cash and cash equivalents at               350                       342
January 1
Cash and cash equivalents at          $    304                   $   250
March 31
(A) Free cash flow is defined by the Company as net cash used for
operating activities less capital expenditures. A reconciliation from net
cash used for operating activities to free cash flow for the three months
ended March 31, 2013 and 2012 follows:


Three months ended March 31,               2013                      2012
Net cash used for operating                ($432)                    ($389)
activities
Premiums paid to retire debt               23
early
Adjusted net cash used for                 (409)                     (389)
operating activities
Capital expenditures                       (63)                      (62)
Insurance proceeds from                    8                         23
Thailand flooding
Free cash flow                             ($464)                    ($428)



SOURCE Crown Holdings, Inc.

Website: http://www.crowncork.com