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Crown Holding's CEO Discusses Q3 2011 Results - Earnings Call Transcript

A reconciliation of generally accepted accounting principles to non-GAAP earnings can be found in our earnings release. And if you do not already have the earnings release, it is available on the Company's website at crowncork.com. You will also find a reconciliation from net income to EBITDA, credit ratio computations, and supplemental cash flow data on the Company's website.

I'll first review the quarter, update guidance, and then pass on to John for his comments.

Comparable diluted earnings per share were up 19% to $1.01 versus a $0.85 in last year's third quarter. For the nine months, comparable diluted EPS was $2.32 compared to $1.81 last year, an increase of 28%.

Despite the recent strength in the U.S. dollar, currency translation has had a positive impact in the quarter, and if current rates hold will be positive for the full year.

Net sales in the quarter increased 10% over the prior year due to global unit volume growth in beverage, the pass-through of higher raw material costs, and $92 million of currency translation, off-setting softness in Global food can volumes.

In addition to weakening macro factors, adverse weather in both North America and Europe had an impact on volumes in those regions. Additionally and as an example of how severe regional weather conditions have been, Ireland is currently experiencing its worst flooding in over 50 years. Conditions there are very bad in many areas and while not disrupting our plant operating activities, certainly have impacted food and beverage cans demand there. However, continued strong volume growth across the balance of Asia and also in Brazil resulted in global beverage volumes being up 3% in the quarter, while food cans with only little emerging market exposure were down 4% in the quarter

America’s Beverage revenue increased 9% in the quarter, due mainly to the pass-through of higher aluminum cost and $7 million of currency translation. Segment income was up 4% in the quarter, reflecting positive mix and improvements to ongoing productivity on the three new Brazilian lines commercialized in the first half of this year.

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