Crown (CCK) 20 Jul 212021 Q2 Earnings call transcript

Company Profile

Participants

Thomas Kelly	SVP & CFO
Timothy Donahue	President, CEO & Director
Michael Leithead	Barclays Bank
Arun Viswanathan	RBC Capital Markets
Kyle White	Deutsche Bank
George Staphos	Bank of America Merrill Lynch
Gabe Hajde	Wells Fargo Securities
Ghansham Panjabi	Robert W. Baird & Co.
Jeffrey Zekauskas	JPMorgan Chase & Co.
Mark Wilde	BMO Capital Markets
Neel Kumar	Morgan Stanley
Alton Stump	Longbow Research
Anthony Pettinari	Citigroup
Adam Samuelson	Goldman Sachs Group
Adam Josephson	KeyBanc Capital Markets
Philip Ng	Jefferies
Salvator Tiano	Seaport Research Partners

Call transcript

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Operator

Good morning and welcome to Crown Holdings Second Quarter 2021 Conference Call. [Operator Instructions]. Please be advised that this conference is being recorded. I would now like to turn the call over to Mr. Thomas Kelly, Senior Vice President and Chief Financial Officer. begin. may you Sir,

Thomas Kelly

and Donahue, With Officer. President Harley, call on is Tim and good you, me morning. today's Thank Chief Executive

you forward-looking crowncork.com. statements. the on have we from will in don't such it a release, results If available number could making is materially of the earnings earnings our Actual this On release, at be call, statements. as website already vary

for million the due compared in actual the prior our results in primarily higher share the including $XXX the press Additional XXXX. filings, compared $X.XX second to quarter volumes, foreign of to is the earnings to in could by increased were prior improved Segment in quarter information to segments, concerning unit per in quarter Form the to in factors $X.XX per sales Adjusted contained quarter. sales due and from million share Earnings to translation our recovery in in income release year quarter. increased $XXX in higher and up primarily locations in prior cause were favorable the $X.XX all pass-through last and to the XXXX costs. affected subsequent currency $X.XX year Net SEC that including across in COVID year's for vary XX-K year XX% the material volumes many quarter compared to filings.

Tinplate the third through currently the XXXX XX. per of between we As earnings in This and estimate quarter share. results release, we operations includes the outlined European August $X $X.XX adjusted estimate of

per the the Tinplate of $X.XX guidance year full the business closes sale our per of of earnings European midpoint the assuming increasing share August. $X.XX to again, are from share, end at We adjusted

now rate tax over the call I'll Tim. turn expected remains Our XX%. for the XX% to year to at full adjusted

Timothy Donahue

you and for health us best your Thank Tom. of Good the and wishes and continued for you this to thank continued and morning safety morning joining you, everyone, our families.

products months June last that clearly X And into of than June our in $XXX with for of per LTM As numerous with average Americas company income Beverage segment higher and approximately our change a recorded have step COVID associates Had and output. commercializing headwinds, the segment the operations significant operations, cost earnings global all growth $XX strong record The million to transitory in strong XX, into as next $X.X in included quarters safe Average packaging lines continuing high-quality delays, supplying and the to our increases, Demand quarters XXXX. earnings in night's and release, timely last the earnings. a supplier convert company customers operations another to across of XX to ended or manner. geographies challenge despite growth rise this transportation as and lockdowns continues income the product importantly, quarter reflected months X the continued last over from XXXX remained the look We approximately shown take X June this is found or discontinued. preceding to the the quarter June now XXXX, Tinplate new forward the European are would been changeup. billion. capacity in the LTM step approximated of year the second results the continuing half EBITDA in next business million of such

LME contractual cost. higher are increase than North last remind aluminum is year. America and Before in premium delivery pass-throughs, at reviewing so beverage reported the reflect both that aluminum time we XX% and the operating this segments, delivered the today approximately revenues you volume higher

overall to across first XXXX beverage related our bit all volumes segment of demand XX% so-called quarter strong first Americas half up As XXXX. last year's In quarter the was of serve second remained volume XXXX with give second growth. relevance, the Beverage, to compared we quarter, will of unit can to the perhaps versus percentages markets also we COVID provide growth more for the a beverage the information, half

half First half volumes XX%. first 'XX versus advanced 'XX

Commercial As the from commenced begin line Bowling described for previously, new first can June line the of in scheduled the we expect company's in beverage demand shipments future. the to plant outlay will September. shipments second from Green, continue supply Kentucky in with to foreseeable

third Brazil quarter fourth in Washington scheduled Olympia, The second Verde, now an line Rio line early and in the start-up. are for

As being X in Brazil Monterrey, Mexico. Martinsville, with X-line second commercialize a both new Uberaba, lines XXXX, the can are beverage can company and Virginia, constructed installed line previously will along new announced, in in can being plants

in Income segment. European to construct advanced commercial shipments the volumes second it for and Customer the announces year recorded the plant compared quarter United capacity. first the Beverage contribution of can of XXXX. second reflects quarter prior XX% production plant's the late half half in Additionally, will been that was commitments secured the company volume already for Southwestern growth, XX% Unit have commencing a which beverage throughout X-line new over the with the today first from States XXXX.

mirrored ease. in significantly in Vietnam and Transit Results higher shipments well activity. beginning various and Asia expectations Southeast Pacific of able recorded the Vung the commence both for and in orders. despite numerous continued grow in lockdown to XXXX last industrial well is continue Asia than half year. Tau, new positioned COVID September Packaging the the solutions with as year at throughout half strong of transit and lockdowns the did shortages gradually increases and will delays, X% these in for the subject demand Commissioning were with plant and versus earnings control movement in overall growth our first most and quarter -- these as do and COVID as for conditions customer transportation business were We growth volume operations in XX% first supply line surge to intermittent the cost The to October. customer balance operations products across expect navigate Crown be measures to

half approximate the for half and earnings can beverage year summary, In remained the food of American along growth growth. half with North the firm the across expect We in aerosols company. a approximately first businesses. back record Demand to equipment-making first --

during commercialized the was the new back significant half commissioned be capacity will over the year. capacity and of New quarter

Importantly, growth flow. earnings common plan. and expanded half, Segment into the and repurchasing over company cash of the X.Xx XX% $XXX first earnings to adjusted XX% year to ahead leverage up we in after million convert income of at continue stock is prior and

of we full questions. to the with Thank have guidance expected that, As take in raised sales now Harley, Tom third tinplate and quarter. ready discussed, the are you. the remains still we closing year And

Operator

Instructions]. [Operator

question from first is The from Mike Leithead Barclays.

Michael Leithead

seeing supply pushed be touched does And much in these on overcame get of that was about of a I that. just that help the table could Tim, quarter? disruptions? quarter. any think you is on that. some the talk some little chain you quantifiable disruptions how may you quarter. of Or or the on where the Congrats Great. the I missed it more us left of kind you just think bit way you're And on third because out quarter into through this to hoping

Timothy Donahue

Yes.

are aware So think there all container well you're globally. I say I would shortages that of

in manufacturers are both product -- container economy and the -- overwhelmed. been component challenge. getting here restart with has rapid move to containers around There getting Europe, So are a suppliers of the

delayed. us, example, whether transit the so all equipment-making steel, bit can for in business business demand and our And and/or a beverage bit ability in other lumber, a of cement, their assembly for little construction to is drywall, that it's for Construction manufacture components delayed. products, high

And a quarters, of we on that's quarters. limitation had maybe There's next much how biggest handful, impact don't teams as we several pushed the several can I the the were $X just clearly, everything into there's mean, process our million. want in probably one in the there's to a characterize. transit if the in -- teams as I well. million So transit next tomorrow, been -- $X would limitation on waiting It business. half much or year, at to have not how the earnings time we gets received our still a back

the and But each company businesses, not the will trajectory about the of individual take So while. the a I'm that concerned overly in little it. performance overall given of

that service customers, service. business the of whether or products in high-quality are We providing be to our

always generally companies going to away. hearing suppliers, customers, have we're and And you they're they're it they're suppliers, of of to are. to turn hearing or -- customers -- the many but expect from so wait And many our tell their I it hate from all as

Michael Leithead

how Great. margins the much Tom. the hoping, year-over-year That's aluminum a cleaner quarter? look of us and of at get to hoping follow-up incremental boosted business. was helpful pass-through question a color. you sales And then other overall just materials could give input I in I the for maybe was

Thomas Kelly

on call that. have up me, don't Mike. of I follow that Yes. can post I front in

Operator

The Arun of next question is Capital from RBC Viswanathan Markets.

Arun Viswanathan

maybe just on the guess data. understand, strong I results. some perspective on get and your I Congrats to scanner of thoughts the wanted

conflicting some and seen comps. volumes, obviously we've tough reports against up So some those on are

So kind of And maybe of, maybe next kind decline kind shake system? seeing of help the up own what you on -- of think I of over guess, beverage similar just your would scanner volumes expect to or as gains percentage again, offer we're can year-on-year. volumes, couple Would about obviously when nicely you're kind expect you you your those out the Where quarters? well? understand perspective own could in own you within us your

Timothy Donahue

Yes.

second not making the extrapolate of you it's had for -- quarter packaging businesses. it's we expect second picture clearly, not first COVID the last especially will quarter Perhaps growth expect second we you quarter 'XX the significant because last because but businesses, the certain the the It quarter we the second event growth a markets, get year. growth, don't -- anticipated some nonetheless, none of to better growth. little why second back half depending of at continue And first levels quarter what through very gave at versus to a provided all I of year. lockdowns, extremely depressed only the year the period. the that we in you want the of of a not But is forces year. a The So was easy half it 'XX, significant, last the on large That's say that be across business. but volumes of this so business will the to over perhaps be us of the growth I Asia slower the time, X-year a of relevant. But it's you comparisons half versus year significant

Europe still and away demand in fairly unfortunately States, the remains last of customer cans United requests. the but We're close level year, not importing are in We still the Americas, turning quite we at are -- and away high. still turning

may some data some you So of scanner have the of I understand worried.

especially the not country, within retailers. I'm retailer And way try our we -- it. think -- it I can. need measure But get that in running to include and data retailers, we're tell the customers, largest take as scanner our can desperate all to as you for up includes another sure all need where when from find doesn't you company to to I to cans. what capacity hearing desperate quickly our industry, they We're much you, and are as sits that

the remains for us growth very so outlook And strong.

Arun Viswanathan

just Great. can a And I Okay. cash. as and on maybe question capital a follow-up, quick ask

stock you'll So at have and capital out of new you year as here outlook some laid you but actions. obviously, some and Day, high your commitments dividend CapEx. at a as this a exiting for rate a potentially, far also kind be plan on, And from buyback of relatively Investor

So the debt expect finish just to cash and review this kind of year you could leverage? the point where you of net at and priorities on for use kind

Timothy Donahue

the of X on said we'd to is or Well, we've higher leverage, capital of in that determine whether at range. I the see we're X.Xx. forward, end end depending requirements range how before that or the to going like And will what think not we be that lower

forward, dividend. to depending we -- on going the be stock. think comfortably to us is should we've I is by requirements year, significant the after will dividend. a especially the the to end end within it leverage of where amount that year, be going sale. we to it pay intention going We're to initiated I capital by Obviously, the of the allow think continue want the of and -- the buy And tinplate this range a back

moves around the much year. you piece each so how that is And buy stock

some industry will One I other -- buyback. cash flow dividends you cash the words, all So thing say, company, and company, be we are -- of the in of of the packaging of fellows free with and for the some buy with investors each time I I'll year think packaging the a flow so newer who of -- flow have comfortable covering for you're the some almost a that cash especially we've used generate been got a share longer side, not characteristics of than fellows levels metal newer on debt. higher unfamiliar

to maintain maintain, see, can we had million you the tried from as have the buying and We still X.Xx. $XXX And never of stock a before we even problem. leverage is proceeds leverage with tinplate,

not is issue packaging company. leverage an So a for metal

like we're us fully get not it cash. get we're takes to but the time may going there You confident to we're generate and there, to going the

back Now we're lot a that stock. buy we're there, going of to

Operator

is question Bank. White Kyle next from Deutsche The of

Kyle White

XX% guidance half. raise walk on congrats wanted raise, the just Tom, on for get half, about EPS full of a Tim, specifically through back to the kind the for the The the back year. quarter. I to

driven July repurchases the driven is much some driven of in made how business you've by that having that August, underlying then is is of just and how by results much how and Tinplate wondering growth. the quarter the for much European by Just

Thomas Kelly

mean business, I so Yes. is worth months, the about European the two $X.XX. Tinplate

the net anything of So going else the everything is underlying in improvements residual way. the you effectively business mentioned, other then

Kyle White

I Got want to talk And about Europe. you. then

new some here -- the U.S. the announced in capacity You

and while really share you the you'd that such that you -- Asia not you peers Are in be the haven't though capital might as you're any maybe announced Americas markets better fast? Is have losing Europe function You Pac? new allocate and capacity in of in competitors markets, is it customers it as other to or Or considering a just rather just region? growing have. reason

Timothy Donahue

No. say. -- don't I'll matter on and just it's sleep that's I a think don't I to of timing all go us,

European exception participate have the in, we market of Western the -- that market. of we the the balance in So over don't we X with there participate

offer make confident announcements. So the ability the those we're platform's no, appropriate platform the company. will continued time, But those decisions Crown, to our make to at and and in growth fully Europe in

Operator

is Staphos George next Lynch. The question Bank Merrill from America of of

George Staphos

to some consider on Congratulations wanted year rest I what, commentary of come far. if your and we from in effect back your any, quarter should last progress XXXX for the comments. so see the to from

in little looking So last you versus pull XQ. quarter, you was for a accelerating a volume, about said a And you were volumes. reason forward worried were that bit sequentially, the of downtick XQ why,

that case. out, turned it the As was not

have are it's quarter year? back you better a had You still And stretching about that about concerned fourth worry through that sequentially. in Or that recognizing you're dilution European considering be bit, pull Do of forward? less we to Tinplate quarter, do to your terms plans the the you think to capital not from the allocate grow won't portfolio? part what be half a capacity you given ability seeing of should -- and customers your the 'XX food able that of European in from

Timothy Donahue

question, George. So understand the -- we because I think discussion I quarter we're that last had -- and this

sometimes as you said extent then would why a not that could forward I And year, other the of an the have it We that half Asia I lockdowns. not we're across you're the We have it some as as the more were were the time even available quarter anticipating. QX, we look as that, that's capacity difficult it's ecstatic in of some we countries. first markets, situation where the the of to we but that from are outperformance in Having or limited and anticipate upside back to we significantly conversation. reason COVID of get -- and do is is we then the the at to are amount are. to say, several more end surprise with across Asian baffled said of earning last overly the And going way, by go the the There lockdowns first were the quarter. that

in now weeks. We the right next jurisdictions have lockdowns X for X

that will So an have impact.

the in we're we the And the get having said some inflation. earning with other business. there is inflation transitory but in year, growth The inflation We'll it next through thing have. back the is that, formulas

we into earn George, to next that the a mountain the back to we're stock. dilution you're the one do me, Looking quarter buying though year, from tinplate is it's think enough and have Well, ways the of from earn anyway. to And growth not through of a at I tinplate? dilution trading on fourth multiple going clear P/E

and an whether we leave it's really looking multiple me So at company, $X.XX that for appropriate post at our not or $X, that. is sure anybody it to I'd P/E

George Staphos

can it Fair categories, mean as other the guidance is that model next we call, next What years? but in there over just better relative your about with marketing do this the enough. what expected for product was it's on if expect race out you at the are spiked the our new on was else about performance worth, What's have flavors the record, innovation? of up new company outlook for any? just categories, beverage view of enough, just Fair I take for couple matters for the keep telling folks new that baton to there than Tim. seltzers are for record. but something can driver that not seltzers? spiked your worry In or least And your of really growth or be the words, to to Or

Timothy Donahue

try to variety of much products cocktails or continue alcohol more that. alcohol-based term are some use, because mean going new want should of the of develop whether we be we mash to shortage flavors, have market to customer successful, real Well, from to it's I mixed Historically, to to group don't know artwork. talk variety going new but perhaps marketers incremental ideas expose worried kind I be the about want I given now, how at don't mixed across to don't that's we a specific And we the idea, is probably them. some they're these continue healthy with of the or a all strength for I the to the we I X spend it But coming But It expect they're that flavors, any about for doesn't to customers. to of might one. of which wrong see or to going think it of and going it a labels. healthy. develop. of less leave are but try been charge of to I'll think on artwork new

So slowed of I'm that imports America into not the do before if like it's -- bullish it amount we strong. -- outlook a -- hasn't on North a down next continue But really really I so this bit worried the than we artwork said, incremental coming as little about think perhaps we've would. we I from the year, product it given I'm have to last maintain XX that was And the more months is I thought year because fails.

George Staphos

and one last I'll over. turn My it

some you the the how to -- the on And we've look of its at the over importance what us years? in is the North portfolio? portfolio update and transit Just American you gotten, next couple for from can at in the particular, relative you that think inbound transit, trajectory you look tinplate relevance, how

Timothy Donahue

Sure.

than for today. don't purposes discussion think XX it hopeful that. say of closes XX. it's I to for the pegged sale that So July thing we've going tinplate the close We're the the August first is earlier I'll that

and previously businesses they we've generated quite those high. the quite from businesses at that The return As in lot your a is to specifically of we the portfolio is require the and the cash don't discussed non-beverage question, capital flow businesses, capital. other high, on look

its plant the be important, of lot have that tend and on capital it business has that the cash to dividends, cash, lot where return trees. to just so flow of well-balanced organization a and/or shareholders, of a you to generate it's in not And of our businesses -- any a view, a garden, share having growth another lot buybacks, you're a to in capital X extent demands versus

tend But those to business garden. to running of discussion And so point. like for the we're have efficiently we as to were able upside you The can. I We to -- time demonstrate businesses like the you a the being, as being, for the we're just Transit all Packaging. at would going time with a some to

Operator

Fargo is The Wells Hajde next question Gabe of from Securities.

Gabe Hajde

to to dialogue I these Tim, us I about is there the that doing XX of go in I'm from it everyone with is share consumer underappreciating path over Brazil the But effect of meaningful a what I that of time but part talk industry this. that that oversupply anything to months? recognizing happened behavior, kind customer returnable difficult itself doesn't to for some well. and cocktails we're of topics maybe think find that forum obviously multiplier like glass. you you about observing gives maybe hope talking a substrate revisit trying kind important started in comfort situation were is of question in more Tom, predicting guess in similar the a to with gains that's can And of XX down potential you or that's George it premixed

Timothy Donahue

Yes.

this So Gabe. bit time, we touched last on a

think were right, another. they're bar to a come -- and products, first. theft the to you going of spiked gun, not to bottles better control from And you one than back thing, bar way the a about pandemic, seltzers as can. going going mixed in you cetera. a bar those I that think alcohol out be of mixed a to et even much a were think and control you owner, we I served if seltzer to control going in if with be drink inventory have even owner, offers we to to a it if bar and the cocktails they're they're people going be are are back not They're opportunity And served if tender. waste mixed by be the -- And

changed when a not you I the And portion but especially upside we're is we're -- only going reopening. post-pandemic, on future. so in for the the or normal to it. of we're consumer -- to think worried historical see offers longer that, it's about X for a as as do still not return behavior time never take that, yes, there's you're anticipate. post-pandemic not what standpoint, lot have what to habits know about I into United always in that perhaps really think X to view you large But we to we're happening in going think can from the and that to it the where there's Europe, piggybacking think possibility But right, we going than industry, I years. population to where, an of a next But don't overbuild. be. States, And that I the So a

I day me feel. do is -- And right doing by said scare so know this of or some going banging door and going for people only no. to me I've we've and how to in customers don't not doing where guys as can years. more guys every you're times, telling we the got it on that supply you for -- demand now I not supply. I think, we're the telling far say today, some looking I business sit we outweigh several many next And

about it. we're not worried So

Gabe Hajde

have is that of think kind was something side with somewhat robust. on much anything on of you sell holiday least terms the that, can where I kind think Again, are? ahead Memorial reopening of said, share of I we or Day guess the great opening the I don't of indications July then going visibility of country. terms Okay. visibility From our and necessarily factory fill obviously at missed think the kind appreciating in was And scanner kind -- in I have of pretty that from data, different across given just pipeline back Do to of research, and holiday. is the of I in supply the I X think chain inventories on-premise the early any timing kind us those like you

Timothy Donahue

Yes.

and typically, -- right given it's is in because warehouse Day That, couldn't about But I can of demands cans Labor the had on a are when an of us But only warehouse are supply, buying product. X for because I months conversation of months the don't the tell lot now are So warehousing a the supply, handle worried I don't tell cans empty balance cans you. interesting question or you lot they the a honestly summer or customers ago. what filled have I increased or on they're the that cans in have fill the we ahead supply. from X in short short

Operator

The next RW from question is Ghansham Baird. Panjabi of

Ghansham Panjabi

what plant, new that that X? for just or this do versus we the of of know in growth 'XX the existing don't to you categories the at industry product then terms the combination categories, about is is in Tim, realistic specific 'XX? the X-line think a that And U.S. for rates new plant point the announced, you just

Timothy Donahue

of was sorry, would the existing Ghansham. categories, what say customers, it's and existing the I'm part I but new question? first

Ghansham Panjabi

Just the industry growth rate.

Timothy Donahue

have, you So -- it would if do what imports, had the tell quarter is COVID right? are XX that screws we units? we we last year, kind about XXX, XXX? Tom, with And problem of The I up, billion

Thomas Kelly

XXX.

Timothy Donahue

XXX. of reasonable number. like Is seems XX% a year, it could say That to that XXX? this you big have

-- this I'd output. initiation feel X% apples we more base. could XX% We're but year, I Crown that be we I'd were think if industry. range comfortable It depends capacity suppliers' have the XX% say the its of well on X% comfortable with to that in apples, is it an on to as

Ghansham Panjabi

the year. of versus in think that across variant don't significant time? are comparisons you And and year what the lap of the impact some the about also And country going an obvious, mentioned seeing in Delta et then on regions I you Got pretty last cetera, it. terms real lockdowns, the Brazil, is the half for extraordinary Brazil, back to much but then

Just your half year as to back of outlook well. specific the Brazil for the

Timothy Donahue

Yes.

how Rio is in The out we think comparisons going up second all If remain line to we to chew we're in quickly going we up wouldn't I headwind capacity. much mean the all it in I capacity, sold Yes. Clearly, Brazil Brazil. this Brazil. in are We're more Verde. higher matter. only the -- get had have new

as customers. quickly be taken to the cans, can going they're As we by the make

or On world, are to with Asia. restrict of XX the number have I other some don't cities about we've say miscellaneous like talked take new And cases. the the variant cases, variants they the When to trying around big new really governments Delta Asian the Asian of new people, cases. restrict number you several the million

So there are the different. that's so restrictions why much

many availability availability Europe, vaccines the in and not in -- these the and to United and I'm able get States. of Now much across quality to don't haven't it Europe. Europe we been the is Asian jurisdictions than of lower is of I vaccines

being. the to Philadelphia, city I And don't point. bigger going know to some political I back this I extent with at fully point, don't popular I'm care. States, And I able the say some XX% United to got They're any lockdown. were would So we to pass to that other not go had, in to to accomplished back of to on we've time political cities they for the as at vaccinated to the lockdowns believe lockdowns purpose. say, of whatever they not really purpose perhaps And use far least are XX% at governors going of -- say Philadelphia. for the the that want the But in would that I in other go they've of people

not lives to out they delay because when vaccinated to complain where or more lives companies pretty They're extend to but do some to people don't And clear, you've get one good if bad rest suffer us for your can a got don't trying way kill belief I drugs. vaccination. so why trying to the don't heard protect reason you the be vaccinated, vaccine. want the It's take you, and to us. the Drug you and right? you're ask other to family. get you. something our an There's on don't you haven't aren't our there don't happens us that, of that's willing for yourself living You opportunity to and sell

cities of the up anytime don't So variants, some United to back any of mask in might we're Angeles forcing are soon. regardless that I I shutdowns don't Los States going to have we us think like again. the think, any

Operator

Zekauskas question is Jeff JPMorgan. The of next from

Jeffrey Zekauskas

your about can sequential What in can your was beverage? year-over-year growth spoke You growth.

Timothy Donahue

from QX to QX? Oh,

Jeffrey Zekauskas

Yes.

Timothy Donahue

Oh, boy. Hold on.

Thomas Kelly

X%. up was QX So

Timothy Donahue

No. No. up No. that It is -- no. was but that's it's I -- know a... X%,

Thomas Kelly

It is number. the

Timothy Donahue

number, got sell is than the more you it's how meaningless know COVID year, to first because quarter we quarter. a right? I many really cans in what right, quarter the last want did think second That's

Jeffrey Zekauskas

question. the That's it. That's

Thomas Kelly

quarter. XX.X% in the first

Timothy Donahue

Yes.

like Tom second for I you something XX.X%, XX.X% So we're in full over XX% like a we're the XX%, maybe XX.X%, but globally, -- quarter. tell think in what the said it's And not XX.X%. little that. -- can year, maybe it's is, I the

help? So does that give you

Jeffrey Zekauskas

I'll the take Okay. what you're was... quarter, EPS In what What continuing was giving. from operations?

Timothy Donahue

the Jeff? question What was Sorry. again,

Jeffrey Zekauskas

you operations didn't pro In and was second EBITDA continuing forma from EPS tinplate if what business? continuing what quarter, discontinue the Sure. the from was And operations?

Timothy Donahue

is EPS the So on schedule, right? the

Thomas Kelly

Yes.

Timothy Donahue

The $X.XX?

Jeffrey Zekauskas

discounts. exclusive But of No.

Thomas Kelly

So was operations the $X.XX, continuing of a $X.XX from was share I'm $X.XX. $X.XX, was earnings discontinued per sorry, discontinued But... continuing loss -- was

Jeffrey Zekauskas

Adjusted. No.

Timothy Donahue

Yes. It's $X.XX.

Jeffrey Zekauskas

Is and rough operations? No. -- in disc that? $X.XX order it of ops continuing that the does in $X.XX, Is the $X.XX

Thomas Kelly

Yes.

disc with back everything because else. forma and have interest careful we're doesn't lose, be to got -- right? to You've you pro to ops out to the going mean have You what that

Timothy Donahue

face There's operations, expenses up the by from operations? of on EBITDA income question statement, Yes. it's -- as second interest you second expense. reduced in the continuing interest when for quarter operations, we And any no was show the continuing income not your All from required. the discontinued

Jeffrey Zekauskas

forma. And Right. pro

Timothy Donahue

don't So press the quarter have first release. I

pro forma months XX So June...

Jeffrey Zekauskas

but forma the... know months, pro XX I

Timothy Donahue

Yes.

out... press had backed you you if prior the if release, So

Jeffrey Zekauskas

I you million million pro at So if for forma it's look the quarter pro But numbers. correct. know prior that for forma? that's the it $XXX don't right number? Is $XXX if the Is

Timothy Donahue

No.

operations, if was LTM right? $X.XXX that what EBITDA operations. as quarter, pro continued no were I XX and look the at $X.XXX billion. we say, billion discontinued is June has trying to And months first There So forma the March food -- Jeff, was

second you the discontinued second other best some can didn't than the spend. for without It's year. time quarter, last more on if a do I in on million we the call, $XXX have this the second -- quarter that's -- So spending a quarter higher lot operations, is

Operator

The next of from Wilde Mark is question Montreal. of Bank

Mark Wilde

number Southern did that for new plant? of a you capacity provide U.S. First Tim, all,

Timothy Donahue

about tell Bowling and/or would Green $X.X to I billion, to you think similar very Martinsville.

Mark Wilde

to That's your it Packaging, efforts in in light little quarter going little lower when higher, Is All the acquired of Okay. $XX you've you still Then improve business? than Transit in view made $XX that helpful. you a EBITDA. million that kind were or right. pointing the a in think is I business, to Or the reasonable a million a forward? of about number

Timothy Donahue

Yes.

would higher we a think million see doubt. million plus going million year. I than to where be $XXX this be be to we're So $XXX no income year, segment -- $XX going We're depreciation,

And on reason least what 'XX, into of why to year industrial a continue there's number try see that for at shouldn't GDP next balance to the business. time into we'll much rates is we that view that different to grow how grow so year activity at and but no this we such want and take until

Mark Wilde

And if and number that that second cyclically of just business we that number, Or full? say, the Tim, pretty at quarter would there second weak? any that still were up much business is running look pieces is reflect you were quarter

Timothy Donahue

right items. and is place is folks in supply. So $X have the about our other issues all business exceptionally What from And don't components the supply I earlier we strong. suppliers there's million depressed as have if little cyclically Demand weak. earlier, we we we're is even the than far the getting maybe because supply, all now equipment but I at having nothing with can the a that we had call. on during estimated just the said handle And probably stronger side

Mark Wilde

given landfill going of XX% this sustainability that rate the intensity wondered I all of Okay. American to I think to And to about moved about And that's is energy for the you of us rate XX%. isn't last what them, I broadly -- just cans? if around somehow aluminum one whole the cans, for recycling me. time? argument talk to doing cans over boost help if beverage Crown threaten is it we running North continue from possible with Is just

Timothy Donahue

a Mark, back went when a shill this that did last thought industry. I for paper we and thought crossed -- the time, it, you're about my I mind and

I'm... So

Mark Wilde

for the business. You're

Timothy Donahue

One find I to feel thing never guys going to really carbonated good package about way a paper beverages. is the are

disposing had However, doubt, going your is. it responsibility customers' responsibility we're question is we I handling individuals vote disagreement -- we're question. in elections. elections, -- consumers and have have answer. government aluminum different a make responsibility on going to either as our don't products or if to No good who that the start it because a you or in don't find real value, point value going But are of And your whose has individuals to a is real our properly vote

We that. our have of have in talked really of higher nondeposit I don't the past issue states. to side in rates strong one deposit that customers the other And or feelings recycling versus get of states some about want because on

pick the having deposits stream. my everything aluminum into better It's not view substrate. X going we're that else fair waste you However, have for to is start deposits for on if to cans, goes

Mark Wilde

enough. Okay. Fair

Timothy Donahue

the the internationally. not individually is nationally in as only Manufacturers number Crown organization do sponsor doing? a coordination it well. as but Institute What we company, it of Can we and around efforts a do We And with

Operator

Kumar The of question next Morgan Neel from is Stanley.

Neel Kumar

segment the In then... Americas you Beverage, just year-over-year and Mexico? America, volume growth Brazil can And in terms down volume of growth in XX% North break the

Timothy Donahue

could. I Yes,

I our those down. the shut -- cans going because have were The numbers customers COVID but some in were quarter -- those of many markets they think in and of so were year those and those lot North America. sold that -- made, were the in to depressed -- last exceptional was you're Mexico a Brazil alcohol of cans

Mexican I digits, double mean would numbers, the say the digits; digits. North high double number, double say So high in high single I the American high And Brazil and I digits. when

Neel Kumar

Okay.

Timothy Donahue

Neel, I start because what meaningless meaningless. quarter numbers said As some I -- of the quarter earlier want the that, when year. like of seeing somewhat said don't COVID the as we to as rates second But was we last growth they're characterize in earlier,

Neel Kumar

Right. sense. That And... makes

Timothy Donahue

We at the Here's if that looked digits Mexico we -- and single XXXX, to up half first high what the of at Brazil half I'd period. first are in of mid-double 'XX tell versus looked you.

about a quarter year of than -- forward. we against up and -- measurement second just growth them period because you mean relevant So rates XX% growth over that or that nothing unbelievable more America, than last still is quite period. high. sit North It's more can it's And think you're model a the talk I here comparing can't

Neel Kumar

lower imports industry then you Crown's sense. just makes That of And but know can are beverage than seems it beverage imports, last Right. up year, a can I year-to-date. terms overall mentioned that imports that for in the are bit significantly

seeing other was from cans import businesses imported in billion the any X of sold And as are customers versus large are cans wondering if independently X abroad the many estimate I got this billion out? you year. So potentially you to having of year and cans last how you've an evidence quarter of beverage generally

Timothy Donahue

Yes.

slightly for again, imported year. We're a importing lot I year, we're -- last cans you less So below lot of I if a importing to we mean didn't think that this cans. what

we're importing cans there's the manufacturers, of don't deals of what global other so and I but other those. their because industry much are year. we cans trying can were -- the tell imports extraordinary know If import our did, make still own this amount only what year, an of there you So to can't we the we XX% mentioned you customers There do. probably out to that's billion. $X I number last guys case, a the imported

Operator

The Longbow Research. Alton question is from of next Stump

Alton Stump

Bev expectations, and surprise to the of course, big I guys number the volume versus drive drove as seeing the 'XX European was segment of ago? can region as growth that years but versus every being strength are first Actually, first Americas. half -- mean you strong what almost much beat guess I half a the where huge half of you versus to pretty of X particularly me first mid-teens certain

Timothy Donahue

Europe And market. X.X beverage consistent for there's in year last in decades. euphoria, growth even to to to -- well, So or all X% prior out growth the is X%, the can been X% decade there year this and I across X%

in today, new Spain put You capacity have right our can 'XX now. couple Parma, that Valencia, X-line a plant in we in anything and we operations, throughout we Italy. X-line although and Between can -- European with installed plant don't new new have a -- announced

So we capacity. have new

to the that why will specific Crown, the are compared half So that first to be reason high numbers of would growth be pretty -- our 'XX.

Alton Stump

is Great. in you capacity. guess next the have be Or new to Europe that big then Makes add over need XX coming? view? how referenced, announced how XX to sense. capacity in just soon I months the And might you just as your

Timothy Donahue

know I I -- to I you due going don't we're I don't not talk -- we'll that now. We'll time. about in let guess to -- want -- right

Operator

The is Anthony from of Citigroup. next Pettinari question

Anthony Pettinari

XXXX. At can the Analyst volumes expectations grow by Day, global beverage you talked about think in to XX% I

able if that being your heard to XX% Jeff, about plus, in you to think response right. I I talked maybe grow

Or more primarily that's better driven in terms these so by it it view, of that extent really by And the in is better-than-expected of been that is there plants some up And than expected the operations earlier question. running has demand? and getting change driven then first to well?

Timothy Donahue

the June, was asking what quarter was rate the growth what quarter Well, XX%. XX% year-to-date the quarter. Jeff we said And second about so second XX.X%. was the up versus And about we was we're first I think -- in of said up or

half the I quarter quarter second the going comparison and quarter, fourth third clearly, rates rate but due not still some the of than growth match because third the second COVID. think had second the we're of fourth quarter will to and So grow the the in those growth is growth quarter, which in higher in to -- to first COVID.

a So on or number. perhaps a I is reasonable still basis, think perhaps global XX% XX%

Anthony Pettinari

Okay.

about look couple a maybe costs, compared we've or it XX%? of labor. construction you staffing is bev to longer-term the read kind goals guidance any XX%, of in ago, thoughts of there helpful. rising any maybe rough in there? constructing color greenfield And And of increases articulated CapEx then When construction costs can -- and up Day, CapEx you any a you Analyst years at it's plant, to That's then terms materials of that steel and that? or at whether Is Okay. can risk kind give the the impact from or on us cost

Timothy Donahue

But versus I next it sit at I guys to years. if might level we're ago, sketch we was specific plant what higher stay plant XX% it the build X a X apex. this at where as don't think or will years down the steel they X I -- out it's -- be we but to their going know and thought we be So plant going I cost yet, to today could to over a -- was if XX% because of us don't at to that it's or years today we today, several sit than cost apex X some ago. expect are sat today their --

don't we need long-term into that to planning our I to adjust capital think take account. So

a to said today we've like company factory The build going a ago, at million because need before, X period when It's you of think you New a like fellows to cans, I you all X build a City to reversion place. out an not the not spending XX-year York years in beverage for over moving risk as call Hoboken. factory down to some of I a XX- plop it or right? center, think moving And get it's to $XX risk million we're or extra $XX versus look that that. by a on you to

a can You're not going to plant. move

plant XX there or be is going for years. that XX to So

So we're to service it, our going like relating but to We excited not overly excited. customers. to not going don't we're as strategy to trying get nor overly change get our

Operator

Adam from is Samuelson question next The Sachs. Goldman of

Adam Samuelson

of the on covered. lot or just mentioned in has your -- of you other been $X.XX ground the comments, A -- want one $X.XX. so about to of that I the guidance, clarify,

XX%. impact. guidance that thought timing volumes that still second trying especially the implied just XX%. of magnitude be pretty you for just on would good And treatment I'm outperformance. I'm the right, really the XX% estimate, the the divestiture maybe was to May, sure can in said quarter a you and increase So that make of in up a reflection global second thought characterizing the to year is the half you separately, And then given

And half so the comparing to quarter? sure you -- exceeded second you to is there. volumes second view apples have make trying apples range the by so much I'm full the if in tempered year your Just

Timothy Donahue

the second in half locations impacted different second some in last You've rates than were comparisons the first the of growth much the But in that the right? in quarter. second year by No. comparisons severely got the half, specifically COVID quarter, the are

back have year. You're growth not of half rates last second in the the those to came same second markets those going half in because

So be while very a you to COVID good there's just want growth second can't we half, another have still in do COVID going nor quarter. the quarter another

Adam Samuelson

of mobility out quarter? ultimately, in able your that had contingency both was in -- back That, I for to good ran the your left the that were given cases, and initial amount first about for get. quarter you and of you of good I'd first the variance operations were was to the you've and meaningfully the guidance is just expectations maybe quarter, kind macro demand frame in real differently exceeded Is good, then. formal because second a it second and volume outperform both going if uncertain that both well you which the frankly, guidance you're you've

Timothy Donahue

Yes.

doing efficiently we're bring to year, best the quickly XX.X% XX% through if think XX%. X I up months, up and as we're our possible. going full to capacity or -- and for XX.X% as on It's we're as maybe be or

here how It's or quickly get the running. when it XX% capacity As factory up efficient XX%. the and -- today, running it up I'm you and we is can really how I and telling depends on sit comes just

capacity bring in it's whatever second the And out. up. can we lot get half. we a I to We just of have market, quick have it function sell no a coming fully that to a we're It's up of doubt -- how going

Operator

of Adam Josephson from question next is The KeyBanc.

Adam Josephson

you're hope Tom, well. and Tim

couple clarify part this what on questions. your back as it the the expecting buy of guidance full to year can you're Tom, a that just Just an just year? $XXX you million than greater of buyback, significantly guidance? Is or amount

Thomas Kelly

leverage. Tim saying, of was As the for we're solving kind

X midpoint leverage the So X.XX. back we're to of to the that pick we want be buy that. stock about such We'll X.X,

months. So through go more last we to the the $XXX million, will be come there as X

Adam Josephson

Got it.

absence assume And question call, the in on is XQ the as again, which a think just, decline? have on sequential normally or said a remind some the know the Okay. into similar your But what few -- me I European I I think last XQ Tinplate. guidance, quarter. well help production which cents Tim, came presumed that you you understand September you're your know up of you thought earnings can are me earnings implied European constraints, I second why to than you losing going XQ from the you'll earnings. higher

your talked inflation inflation expectation -- also about you quarter. think significantly. quite I And guidance but up ended last you of inflation, about beating talked You obviously, your

Timothy Donahue

modeled assuming Tinplate a given We've forecast you European we August. keep and through

weighted September. to of who to most and European heavily know you it's the For some for heavily business you the third Food quarter followed is weighted time, us

So that's a good fairly sized number.

would we It's there get hope the I see, we'll being capacity bit things, built as outperform more we're the the here, inflation because as you've the but -- going year I is the sell into big -- quarter is of in everything in already contract available -- it's in to you I do that think risers said cautious, the that you're we And that just earlier third sit us you make I next it inflation that or business, and to the there one that. that it's areas opportunity to are forecast available to and QX. until where take a your that recover will what is capacity forecast lower right? can Adam, --

Adam Josephson

on just that, appreciate Tim. one I it. longer CapEx. term, And Got

just you any you it, levels new a announced in expect to plants this $XXX presumed million I decline Is and reason X, CapEx next, there So $XXX X from over 'XX-ish. obviously, come year's year the call million of years? talked think about this

Timothy Donahue

expect So think I tell you think I we could next there's or as I today, more to -- spend year. that similar sit I comfortably here

ball I that, Beyond not my that crystal is -- good.

So we'll see.

Adam Josephson

the cash last one And just on one flow Tim, issue.

messed assumed might is the any what be given myriad to date flow on closing look cash other going up. is to your what flow I issues likely know like But the new There that on of thoughts messed going given Just thoughts up. to any deal, are like? these be cash working issues? look capital are

Timothy Donahue

Yes.

the earnings from with cash that, of months. statement, food a the again, the the the but business free because the not business, lose cash happens shipments Not and flow cash through within the purchase lot So not last over through flow lower you only mechanism, summer, is buyer true-up the flow. price X capital the working the for

purposes meaningless, the don't I to think, modeling for meaningful So not going that's use like but it's I again, something term forward.

Operator

Jefferies. is of Phil from next Ng The question

Philip Ng

maybe reopening bullish a demand reversal mentioned, a It color the more XX like dynamic. you little a Tim, outlook were, to than a than it, from months your the upbeat why less next on more I any But guess about for previously X bit you on ago thought. call the you're little side? more worried months X you you're sounds

Timothy Donahue

have for is two all. at The requests subsided the not one Well, reasons. cans customer that

a level to talk In the subsiding. of might gives reopening, delayed rates outweigh fact, it we about and far reopening that and to you look think the are in like again, not just customers we a as look are And that in, just what bit And or even like, a others imports are going they're might impact increasing. really just bringing reopening confidence full a little -- from reopening. it's growth a any more

Philip Ng

are expected. be Is moderated of whether the just Were and piece. products I'm reopening that to? customer it. as a you've than a bigger these little out has where little that bit demand might stronger, new variables were your to trying to seltzer be there -- previously contribution? stronger Spiked seen a of close you pockets Got flesh base maybe any any it or more we and -- any there little seems not

Timothy Donahue

Yes.

the So a past, obviously, right? rates growth the they're to had larger growing going had rates, growth tremendous not but they've base. they're same in They've have much that off

volume standpoint standpoint, company there's still the can -- significant from So from a unit growth.

the all Without products. from has say, we There I just want And sometimes demand -- leave the that. unit growth rates it been across we volume get contribution about forget we up hung growth absolute something on saying get at and and to that. I'll don't

Philip Ng

more more Okay. guidance, that. my more your And about limitation guidance the helpful. upside? of you capacity Is but accounting of a its seen would that But conservative color maybe any in have would expect full think around constraints for for just hit of kind the year, we big first half of then we've you peers there's That's kind mentioned for the half. capacity different when year? where Appreciating some helpful. you of mentioned next the that early more maybe stride provides why be do reasons this that that when back really And just little looks capacity on you're and a few have optionality have coming you surprises that upside like later a little

Timothy Donahue

and I'd learning and curve up like quicker have think we -- the I'd in we and think lines and we getting to better getting to like Yes. bringing we're at on are getting through past. are better, than better

we think that. doing I are

that better have others. than around the much world locations We some it do

well. line real Green the like is feels it far, So first going Bowling in

the second you when they're plant are line up learning the as We'll doing on bring time? first to and see. they the at curve you as that able advancement same well through the complicate line Now continue

you like to XX curve. get us we full tell months to about typically, that takes through So learning it

the as of do know better, Some the said. teams are hard factories as the I thing you all that they tell And I only as can can. is I trying

Operator

of Our last Salvator question from is Tiano Partners. Research Seaport

Salvator Tiano

little wanted start-ups. on the new a check Just bit to

of QX. some that impression the were under was scheduled them for I Firstly,

are could I them include more we most secondly, QX start-up think of the as in the hiring a the the to start-up, of delayed with training months being few of with advance, align should to most are about about do calendar by And now that lot the start-ups expect confirm Or How think you say, in start-up QX. So expenses, as we want they and QX? costs that? QX? than a

Timothy Donahue

saying correct factories So month in early you into X up QX. bringing QX late slippage of or are in that small maybe some there's from been a the a

don't talk been in do not you Tom just embedded to to disrupt the thing possibly that to has that efficiency We've the has of somewhat that's of it tell running material plants, at. XX We've we frankly, start-up something something greenfield costs, added quite to and years. the frank run impact we cost. middle highest fact going It's greenfield at plants Some building market. well I'm start-up you. forecast trying plant provided On the that the season, it's platform supply, raw globally and the in only has we're the of do -- over our building do about from can with for we're is supply, every significant to right the in capacity with

have you from we're impact positive about have enough more of bring part you for the growth there's costs. enough when I need things up happen factories. don't less. to talk going It's So or to whether answer I and start-up don't business to as we that think And an the

Salvator Tiano

Yes. dollar I mentioned in past, that not explicit be guess My an think would about you've the number. also I timing. the you more here question do provide

think happen a Or regardless QX on should in these QX? early make of will that it's try costs we going that no, it of what are think and own to model we our should we assumptions, As QX the amount? because that in lot our start-ups to own start-up be

Timothy Donahue

get -- going If a starting and that's you're guys you're have up as that all expenditures other going the to QX, of I you you're in you've plan to how model And then of you're to model and comes and so you breakeven. QX let part training significant it -- in number if to expenses seeing. to going want curve, model. to up QX, through in you learning have bit some QX just the got plant you're little and

look think for I that Bye Thank much, We said Harley. Harley, that our our call. Thank for So October. conclude in us. you with today. last will you now. forward And again you, you joining to all speaking call was you of very

Operator

joining. today's conference you, Thank that call. Thank And speakers. all concludes you for

You may disconnect. now

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