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Crown Holdings CEO Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: CCK

A reconciliation of generally accepted accounting principles to non- generally accepted accounting principles 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 will first review the quarter and update guidance for the year. John will have some comments and then we will open the call for questions. Diluted earnings per share were $0.89 compared to $0.83 in last year’s second quarter on a comparable basis, diluted earnings were $0.84 per share in both the second quarter of 2012 and 2011.

For the six months comparable diluted earnings per share were a $1.30 against $1.32 in 2011. All businesses were above met or were close to expectations in the first half and we remain confident in the full year.

Demand in Europe continues to be weak due to well-known ongoing economic issues and to very poor weather. Overall, European unit volume sales were 3% lower in the second quarter compared to 11.

Demand in our European beverage business was firm and slightly ahead of the prior year but was offset by lower unit volume sales in three-piece steel packaging, that is food can enclosures, aerosol cans and specialty packaging. Our business which is resilient but not immune economic conditions reflects the continued weakness in Europe. We had planned for much of this weakness and early in the year adjusted our production schedules to reduce inventory.

On a currency neutral basis net sales were level to the prior year as higher global beverage can sales were offset by lower unit volume sales in European three-piece steel packaging. The strength in U.S. dollar relative to the Mexican Peso, Euro, Pound, Sterling and Canadian Dollar had the effect of reducing sales by 110 million in the quarter. Our review of revenue by segment will be on a currency neutral basis and the unfavorable currency impact by segment was as follows, 7 million in the Americas beverage segment, $2 million in North American food, 30 million in European beverage, 47 million in European food, 10 million in specialty packaging and 5 million in non-reportable.

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