Crown (CCK) 21 Jul 222022 Q2 Earnings call transcript

Company Profile

Participants

Tim Donahue	President & Chief Executive Officer
Kevin Clothier	Senior Vice President & Chief Financial Officer
Chris Parkinson	Mizuho
George Staphos	Bank of America
Mike Leithead	Barclays
Phil Ng	Jefferies
Ghansham Panjabi	Baird
Mick Roxland	Truist Securities
Angel Castillo	Morgan Stanley
Arun Viswanathan	RBC Capital Markets
Anojja Shah	BMO Capital Markets
Kyle White	Deutsche Bank
Adam Josephson	KeyBanc

Call transcript

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Operator

Good morning, and welcome to Crown Holdings Second Quarter 2022 Conference Call.

Your lines have been placed on a listen-only mode until the question-and-answer session. Please be advised that this conference is being recorded. I would now like to turn the call over to Mr. Kevin Clothier, Senior Vice President and Chief Financial Officer. begin. may you Sir,

Kevin Clothier

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

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

cause The in to in in Additional the the the $X.XX actual -- in factors information recorded quarter per quarter could $X.XX results quarter. in earnings filings, year the and that are to subsequent filings. SEC earnings XXXX. Adjusted XX-K press compared vary company our release per Form for prior SEC share diluted and to in compared of $X.XX, share contained in $X.XX, were our concerning including XXXX

XXXX higher raw Segment was compared and and Global The the our the in in discontinued net million were from food prior operations, and the equipment second increased per material beverage tinplate and can-making income up year, the due the quarter, quarter in year, earnings pass to beverage can businesses, to X% interest to buybacks in volumes. the the of share million profitability improved costs Net $XXX to $XXX volume prior of related XX% sales European XX% due share stake. equity the through primarily included of quarter $X.XX primarily savings, remaining North from growth. American

authorization. the repurchased stock current board $XXX billion June million have of under As of common XX, $X we Crown

and US prices persist. will European headwinds balance of the the For energy that we assume higher from stronger a dollar year,

up billion, Also, to $X.XX stronger currently energy figures the per to operate of in project rate million for year. cost. as be year excluding compares related in assumes to to of ownership range noted, $X.XX we with rate We XX% guidance, quarter the we of EBITDA euro currently equates to strong average We costs, average Adjusting higher Using currencies per $X.XX each per year $XX million, the $X.XX $X.X third the diluted third for the for estimate $X.XX $XXX and previous net parity the an increase operations, the in earnings in the dollars savings, and in all with half. $X.XX bulk $X.XX globally, second of move remaining are earnings of buybacks share the a share. of higher which the forecasting rate be the from and interest euro-dollar This earnings share. dollar proxy to our expects the balance adjusted food million equity XXXX. Both range The of per now the euro a approximately for adjusted energy included $XXX share of share. impact line to the the full it where the of dollar of US company quarter in euro costs discontinued stake. should euro-dollar energy XXXX the be

be cost of from Our proceeding tornado our estimate assumes year and in related recovery to Green to all according Green Bowling plan December Bowling is full will by the losses year-end. recovered

of I'll that, free billion share cash repurchases capital flow $X Our With of billion. turn at the over call Tim. and times total spending, million assumes target remains $XXX $X leverage and to X.XX of

Tim Donahue

Thank and Kevin, good everyone. morning you, to

added improving, continue line capacity demand soft performance in to Kevin to XXXX. in American United summarized, can customers businesses can our Globally, as last leading in but quarter and from States filling add lines, the limitations can increased conditions reflected first tinplate higher still performance night's just has overall and half and and prior capacity volumes second can beverage despite was positive. year Transit release, As North to suppliers. Global X% in continue food the with was benefit Brazil. from in

the inelastic. if unit remains sell had volumes in and America. supply from to America, cans have curve. this both Having year term projects grow a we restarted global with on have XX% and numerous global the is have the X% more of Crown, unit for than this has and are underway but manufacturing Mexico, announced X% release, outlined use Reported As through growth we in some a exciting the sales And coupled increased South our due through ourselves tornado cans once in business. In the not first North meet higher an X% from cans. and we X% our is been dollar. challenge Bowling demand just greater US half, I with advanced to increased a raw that, initially has system plant the or we way demand. could the the working demand and more of remind excellent impact in of stronger global volumes second but to Beverage, prior capacity Americas footprint Inflation unfavorable not behavior currency for tight a to an material impact learning The US on the in markets. to which translation quarter more revenues pass Green most business costs estimated, primarily said over offsetting we in offsetting growth continues that consumer than we decline

reflects the most first $XX with projects at recently system and XXXX. in throughout Looking in shipment end better six Segment over this forecasted Brazil. costs mix also currently in Italy, the over income Green, in in we and Brazil Martinsville tight X% for Unit Supply and provide advanced with unrecovered in with very coupled the beginning volumes next first in months second selling our demand first incremental coincides volumes Mesquite million contracts further America announced North unrecovered mid growth UK forecasted as Bowling of XXXX growth Green prior Conditions noted fourth industry for ahead, the Spain in XXXX. location quarter with quarter year, during needed the the year and on growth winter in half operations. improved World compared income. than operating in A summer year. through is to European over prior strong million of half to system $XX mainly second late conditions approximately the up the related volume the XX% will Beverage place, to the Cup in season led based X% learning and to project remain curve much capacity and Bowling with commencement year operations segment quarter. Volume

even and advanced steel will the the of sale year dollar-euro quarter However, was second combined half the the on offset we Asia prior performance Strong performances protective increases quarter. in XX% of of Southeast recovery parity expect second for transit strong energy currency the costs. holding rising in Asia. US business. with for more packaging to second the view business, across initiation in (ph) leveled in price comparison shipments year inventory and [strat] Adjusting in losses cost Kiwiplan the tools volumes challenging businesses, across the Pacific Beverage and prior become can

shipped on release, in production capacity. does only. continued any not program disclosed American last administrative or has prior The North release, overheads across and quarter. in Strong footprint as we the advanced volume result highlighted can-making initiated of night's Transit two second food cans a the reduction And to segment our sales during piece quarter. tinplate year. equipment As in XX% the the self-made program focused cans performances cost reduction piece businesses XX% in the Unit food X than in more

our the are overall continue supply the levels. performance overcome chip, delays mostly businesses, In and to half circuit as it and the the disruptions, headwinds faced, Crown or We be at to be we half, challenges equipment first display supply bit on among strong and flow excellent expect second we challenges during and are others. grow to ready a Our steeper shareholder control boards, energy continues whether to entire that, backlogs can by we now but relates and their our are with that customers grow Nicole, within value. turn our questions. both making focused And panels, summary, take to franchises to but currency grow currency performance inflation, motors, to with managing help the and chain chain, order record do businesses face in transit continue with energy team numerous pleased

Operator

Thank you.

from [Operator Our Instructions] now question from is line Parkinson question-and-answer first We Mizuho. of begin Chris the session. will the

open. Your line is now

Chris Parkinson

color -- Brazil second America, my bit much noise you XXXX? also just very just then given few just your half inclusive same the the little during ago? Thank a APAC, of second the Great. do expectations And the for on the question. just you. all for add a of Can half months more outlook versus for basically the Latin you of taking in Thank

Tim Donahue

not -- have in in prior second the and Brazil, Asia front up expect of think compared me, sure certainly it's year. I'm to half I but to that I both the we be

Asia QX. start like at to it if that I'm growth have lower QX, some second in here, due Asia, I the something good last has looking half we I already. had it's shipments significant we're looks a -- year very had in mean, to going say just would

we And having the third I Asia XX% up were in growth will in the second to think the QX, -- at least up suggest shutdowns. I and quarter XX% it's quarter, probably related a fourth would half. like fair of combination if statement second be that COVID in obviously, the

a just the quarter, expect -- it customer was As mix issue. we’re the market few we down That's in X%. up to Brazil, percent relates here a second

market, the losing market States. inflation of very any is lost But Certainly gains how a balance the get through half. we perhaps Disposable not like the customer year. Brazil. haven't income, share big great to that as second market a United they that in in as it expect manifests just expect significant itself in share particular impact in like a the in back. We'll that temporarily the Brazil see We having

of certainly in can the the we're much that's have discretionary more market, used increases the beginning to, the that full on spending small at than a in we have certainly year. like but forecasted percent and increase So would a than market lower and forecasting several beverage we year, are estimated products we for

Chris Parkinson

it. to call. of were million add just that Got When current we investors first is is a think held as steady quarter just status all of our the run the to process follow-up. the for the contracts? versus quick European we're at And that be just half the the helpful. discussing half already next anything just you. for looking should energy you given kind during there there given can And just or very second prices, we your rates? Thank How And adjustments that ’XX, $XX current any the help consideration so, for of first year thought would there if about

Kevin Clothier

Listen, yeah. of for quarter of half So, be would the earlier. energy of the in Chris. the through went going a as said the guide bulk second Hey, the is energy Probably increase year, basically the I first about half. year, for the to say, it I

place, The in at strong here had fourth first quarter the third half, we see headwind a We current benefited energy. in from on the prices. hedges and we that but

is and So of increase in would to I the going third XX% felt be the quarter. fourth say

Tim Donahue

quarter to relates do necessarily going I what Europe on think year. want in energy markets in it first the as I ’XX, to don't the are comment next And

going I do properly are as as of are contracts, recover of upon costs it Ukraine-Russia amending get to to projects manufacture that contracts [indiscernible] born they relates has the we've But think the as we forward to. some to we and -- in with products. due process said, the us to come situation that

and want don't Beverage for parsing out European ’XX. ins now I right get all to segment So income the of the into outs

done haven't in we expect in a yet, significantly We be certainly income that ’XX. budget but ‘XX to segment, up segment to compared

Chris Parkinson

Thank you so Understood. much.

Tim Donahue

welcome. You're

Operator

Thank you.

of from America. of Bank Staphos is George Next line of the question

line Your open. now is

George Staphos

energy? off, sequential at start again, the the couple Is that And Good morning. mid-point my earnings Any you to of or Thanks Tim largely the $X.XX the Is appreciate we per us share as I that guess question. other a in that mind other us you would help everyone. and for guidance. taking we, Hi, from in there have third XQ's things Kevin a I decline? bridge way, to details look that had follow-ons. keep quarter? could

Tim Donahue

Yeah.

we will -- quarter. you give So, get George, a more currency, I you is each through detail but impact going maybe as on think some Kevin bigger if to about have currency energy,

said we months. which stay but think through through $X.X I six if number you're $X.XX, right have And as was parity at six parity last think $X.X at we we're I average, for the on you we but year, was QX, were now a whatever a already. in months,

looking the estimate, bigger against an right? to at the the because in or just said, all one of of in through a comes EURX.XX as you a number use euro, QX, in you're So euros, euro we not as that's which give we is We $X QX, quarters. currencies. we're a $X.XX global are proxy which And

So, than don't you've anything know have Kevin, further I energy if you already said. on

Kevin Clothier

and guidance. the just split, XX% energy to related first half back between we of cost and QX say and look, QX say, equally the I felt the year it’s George, in FX. of I would energy the half FX between the the And would

– So

George Staphos

it. Kevin, to want I factually, just got just And make I sure Okay.

that in it's first half that true called that is that you out, headwind second already felt half. in the So i.e. incremental, XX% of $X.XX or felt the you've all

Kevin Clothier

XX% first the felt we of that half. in

George Staphos

Thank it. for Got you that.

Now, you second had recognizing question questions haven't piggyback next done year. Chris’s But budget for also I this. of sort a and

now. raise -- figure I I it So

could reset? you Donahue Tim how be price as next tough rate benefit can change average let's first the a it therefore year. share XXXX terms versus understand grow will likely FX, per got knows, negative from see that we comparison tinplate question, you run that even do a what And of from and So change. Energy, quarter. have is probably a these on juncture We no no - tough this next in I out, pretty who on is into you is recovery you've FX obviously earnings think in if obviously, very those the -- an but year assume there At think George. actually in XXXX. look comparisons A given what

something them certainly right? try be at So assume as me. less let's in remind stay at just to and will parity we little I'll a QX to going at parity, forget remember FX then And we parity and them we're next just here QX. be I QX headwind bit take QX, in stay if I a and assuming In year.

see a a might of headwind you So bit there.

On can European energy, issue and the only. that's is beverage it a issue a

transit, business electricity. natural of of in We We energy headwind have the -- a it's whole we don't mostly a in don't use lot have Europe. lot transit gas in

being the So, [XXXX] some market, start are the coming energy projects we number we too -- but but that have renegotiated have again, with to a call that new (ph) contracts do early on. from higher of renegotiation been or coupled volume as currently of

is confident So that to European Beverage be going in we're income segment the better. segment pretty

XXXX flat -- can As to break in the you're -- let's tinplate up going assumption versus XXXX. the use you're we it break to market going that steel is steel, and down relates for to

our businesses that related food won't we gains in have start those if premise So aerosol steel and we we is that, if year. that, next with your had can

this even for you. we discussion purposes two bring push be piece cans further of and less further curve agree will Owatonna, more offset growth and we on with let's incur produce That as can Hanover. startup and through in by cost So food just learning Hanover

by steel that transit. won't the headwind So can the year food we going of this then on next frankly, that have think overall the to have headwind fact displaced side, this displace of the balance the be the And company headwind. currently year -- most steel we in steel will I we're in

we do And steel in we we're mechanism we steel inventory we've a We our have changing under to the incurred those of steel holding than as significant or nonetheless, have steel this products our Nut that. next businesses. year. tinplate and We in headwinds do historically, products them packaging process different buy bought So -- not expect characterize sold year. losses.

George Staphos

for good in you, growth in Okay. on. could And your quarter. project you and Do Europe North look Brazil volume Thank lastly, What have turn the cut like and luck America in I you will have like coming view customer on it commitments based a in next rough and year? over.

Tim Donahue

Thanks, George.

I that inventory the sit that consumer whether said returns as can North and way in getting easily X% drawdown the the but supply the Cup. first XXs severe celebrations, especially they're we XX%, look and contracts, quarter or here don't stronger I a believe in and QX replenish here we begin hopeful after we America in number returns with So they their that in going their to today their. to based to market [indiscernible] World have it's the know, Brazil, that fillers XX% chain on of and the we're

in any a manufacturers year balance, next do when capacity. X% in the one sit here, for X%. a on we might pretty year Brazil, is you this on of depending up yet I bit we're have a amount year would capacity can't that can but up as but brings growth any only minimum in to budget coming project this year. don't that from so later as lumpy, if on year, of have that's give us you hope we next -- be So good And Europe, that. appreciate, we on I the And of I year we the of

X% would we're range. the limited, expect we next whereas much So this volume being to growth the X% in to flatter year in X% year capacity range,

George Staphos

much. very you Thank

Tim Donahue

Thank you, George.

Operator

of Thank question Mike next you. the of The Leithead Barclays. is line from

Your line open. now is

Mike Leithead

morning Good guys. Great. Thanks.

Tim Donahue

Mike. morning, Good

Mike Leithead

I just wanted to First, clarify.

$XX is currency revision. anything $X.X Is all in about is there talked billion you think that or energy I else European which EBITDA, in million of about that?

Tim Donahue

listen. No,

looking at. was at you I think, looking I page were the

got majority energy is each And less or the the within is half. the and in second see certainly you've more estimate the offset majority and You'd then other and minuses, businesses currency -- of the energy. and but businesses, the currency revision pluses that vast of that

Mike Leithead

Great, kind thanks. America. dig commentary then second. your And around of to North just want Tim, I into

I more think production plan limiting factor to plants right can or volume I'm only but your the now? understanding not you limiting any have has correct? be mentioned you demand your sheet if And capacity, Bowling cans. is you was to the there correctly, only issues Green factor selling that is up availability been key X%, more Is as existing

Tim Donahue

where steel, can issues, aerosol They I many have the chain. We beverage Listen, have like our globally Chinese chain don't of to challenges. having would there's and have impact shouldn't can, -- -- that supply like So challenges and that. supply challenges equipment to problems we for light chain on a circuit remarkable as done I say, can tinplate, about businesses are to say especially, we others suppliers our have have, any tell chain significant from not I have opposed job it with our operations navigating we magnesium that, chips business, supply I no going situation. no. always the food talk boards, in any we will that -- be we we're the know aluminum, things all can the see see some a do in even port of supply and magnesium, we you the but

a Green, has like. we bit as supply not I related. disruptive chain been more than would So Bowling said,

you gone had the instead also -- others. say If cans could would X% cans, can have when say second some maybe have we United third have being sold and several we was up for We been shouldn't lines X%. to plants better than we characterize or in of we to added I up second, more I if more third States production

Mike Leithead

Thank Great. you.

Tim Donahue

You're welcome.

Operator

question of the next Ng Phil from of Jefferies. The you. Thank is line

now Your line is open.

Phil Ng

guess, environment little for some elasticity are all concerns How certainly great from the can of macro kind and and just a Thanks getting Tim. color. you is I consumer weaker alluded Hey, a of the is consumption. you there that to done?

Tim Donahue

-- was not I Well, can demand I it's didn't said Phil, say I elastic. inelastic. say didn't

Phil Ng

not as growth well for say, confident, But as you inelastic. to next pretty Tim, year, meant I seem in what Europe. America North That's

of you just sight, does So had Europe. coming certainly some on, North the America if is of some to the provide. color some have the to how mean, of I us much guess, give up that volume some in I of guidance line contracts and kind tied soften of you macro

business up So broader color and that if how from would the little just conviction give up you're levels us was slower? hold your standpoint? that how set securing macro view some just And a on on your

Tim Donahue

Yeah.

America I so North think XX% -- you for characterize as [indiscernible]. I'd to X%

we macro hedge so trying a the in building Nevada. might And what in I'm of the what what can happen to think plant but -- I think we're environment, in process versus

been the Southwestern in since have part States years United We facility. the now, of almost not [indiscernible] closed for the we XX

we've gain in And at the confident it we you Southern at the that I'll in shift believe. cans There in that past California I want be had are that. Texas to the perhaps in see that transitory more we'll perhaps past with have it long a lasts. the that. much, of contracts say understand region in in inflation how are consumer would national to do America but and/or leave leave from we on lot I that fillers and We week so-called may North too don't than future. tied just the Wyoming. market contracts will I'll are that And growth

transitory that's repeated that I unfortunately I funny think ago. comment. I comment XX a months think

term I inflation. So government some I don't transitory. took to leaders of fine sorry, describe think it's I'm our

for I think to while. a here it's stay

back going I to think pleasures enjoying consumer the the life. ultimately So, the -- go want consumers in to will to small adapt

time. don't suppressed to for see a think I long So we're going demand very

I going I've the as I it giving back. But thought get said, I I what hedged our would XX% growth think you be nonetheless, number. to by we're have,

Phil Ng

from sounds XXXX? on the on like a softer. looking, being It [indiscernible] your out demand the look as we the it And kind think about sounds choppier taking demand to but supply transit, results been than take that that's view the profile profile you're get my expect. would how your at little costs chain, certainly mostly outside thinking maybe -- of it's little you're that like thoughts to to we Okay, helpful. On we curious actions

out unpack that So ramps us few think help in Thanks. then million $XX next help kind us And things? quarters? program cost of those the about up how

Tim Donahue

So, Transit our challenges to businesses. equipment is chain challenges that in think what very faced those are me not the in reason see you we for the of are I listen, flat. equipment But and underperformance I in chain second transit any the the might we year-on-year. were can-making in supply similar business supply quarter business basically we ex-currency the face mean, divestiture our

into and Now, our too down got steel we so, pushing procure environment through for to steel inventory much probably we tight went year. ourselves to But steel and situation the and then in deal higher We our we're was chain a year which business, customers. price supply earlier entirely full year, to that's a going not have our we're late be last out collapsed, price market lower that's holding we and where steel don't expectations. compared we these anticipate that to next related, in related steel losses

that So the for But recur. won't that's that. most part

every reduction transit. about of businesses do As the has to almost demand think you to one demand. across demand our related profile, be strong with to anything in continues nothing program The the overhead

level now that a we've earlier. on a and for I in out their business it is footprint making I taking understand certain there the administrative this understood there's go-to-market not it's the business not a strategy this only four we're overhead. owned still getting Nonetheless, This I the understand years, S&A with a a any little company. Transit And should requires said, manufacturing thick. more S&A have the whatsoever, business. a little for be production reducing for I what of can is should and we're I'm capacity, business As purely the line manufacturing than for different is maybe overheads.

through top. view program of $XX balance the coming should this as million, get this in million we assume year we'll the year. off the that $XX half reduction about the overhead pure let's Thinking about gravy of second and you next So get

Phil Ng

the holding talked to on year then, Tim, And charge on year? that this this for steel, you inventory quantify about us that anyway

Tim Donahue

to here it. There happy, a I quantify number. you might $XX have million we was quarter. you probably first the perhaps and in the it quarter, ask million is million big think to or we $XX we probably way I'd million $X or probably and the think million, told It -- wrong $XX not had but more and number was third in was we're we said a like it about It's $XX

So absent these steel been had seen in strong performance tools businesses, protective would as quarter, losses, also demand the in pretty third packaging good we've actually we the backlog that equipment and which may quite look quite underscores the and a has really which we strong the forward. in

and business, recur the understand have environment analyst the less you strong yours about in has may use will to So Transit underperformance exceptionally other not but our we issue year. is next entirely a business procurement concern it related to been and steel that and have concern. I macro demand that what might terms do that a like to business

Phil Ng

Tim. color, Thanks Okay, thanks a lot. Great

Tim Donahue

Thank you.

Operator

Thank you.

line Ghansham Next question is Baird. Panjabi from of of the

open. now is line Your

Ghansham Panjabi

Thank you. Good morning, everybody.

Tim Donahue

Ghansham. morning, Good

Ghansham Panjabi

point. of on sold any just up the consumer. cetera, lack still context measurable I you're the understanding whatsoever in as pick the this to or or about the inquiries new Asia? as What it morning. America change to elasticity Phil's that's of And categories, have the et in as US, new out -- Has product to at consumer that North development, well? to new emerging other however you whatever -- how to, question then just that. clarity terms of business been relates describe there in impact comparable evolves some back markets wanted including of exposure on And that Good you impact

Tim Donahue

Yeah.

Ghansham. So I question, -- it's a good

then many response little I do was concern I And well. Brazil States. income it's Asia the five growth consumption bullish continue inflation. deliver the the or Southeast the quarters hesitant others? to looking grow, emerging have not but market product let's Will we year three there to companies I consumer five the within growth consumer. beer question The as hedged or to Europe is forgot markets markets or to going I in to you on I your and -- the markets. United immune periods, the the being we my say, prospects see have perform and old be question. the earlier. the are you of certainly than deliver pleasures your again, where only getting to certainly so I a they I at be not to ahead. has continue only ultimate next why that, around or part think Asia. Southeast package said disposable where of less I where slower growth for XX apologize. package, Asia small I They I’m exceptionally like on pretty years Southeast preferred think was Having we -- do see the in of the look about other Western to But the year question We're exceptional over understand, the products Yes, think world on far blocks is sure. can one

Ghansham Panjabi

inquiry? terms America. Yes, change there, of Any sure. It was in business backlogs, on North momentum

Tim Donahue

also That's good a question. Yeah.

look that real than things lot where -- but we they declining in adjusting to environment price I to be you've consumer a CSD that's any I larger of North for have demand think the we for demand, ongoing healthy perhaps the to profile of inflationary especially looked slowdown we term, buy. an at own think America. end And if to gets they, be a who everything But not think the really market, the data craft pushes. Other and area supply one I shock consumer but through States, return cans, is coming is retail was globally, in that, used their in and of where one beer to do we're do that light paying more sustainability the manage United only having initial longer to craft look will big quite I a as I the not seen craft. in obviously, at companies from going it here would the market in beverage price

Ghansham Panjabi

for question. Got And second you. then the

buybacks? gas, [indiscernible] for curious as aluminum I a just period In is share then terms I'm magnesium, there separately, your and of has can how in the much. that time mean, down original you But think touch still there about you're you that been to short $XXX some on Thanks guidance. with whether so and cetera? changes, to access versus et million just also cetera. reasons specific EBITDA of And obviously, et very FX announcement reduction,

Tim Donahue

access. aluminum on impact No Yeah.

for the coatings, one suppliers, got but tell only As little the -- are they're other supplier, relate us. they're I foresee with globally as you, not conflict we said the supplier so question. aluminum only we the supply to don't the magnesium forgot magnesium. whatever, there it business, of has of challenges can done a side our it Phil's not be the And I to any a part aluminum suppliers on job our to a is aluminum they've question, I to the tremendous small -- and into suppliers aluminum

Ghansham Panjabi

The share buybacks.

Tim Donahue

comes as we EBITDA debt the of but billion what sorry, think $X euro I’m we in in buybacks. the Listen, we're $X year, the this share to million Ghansham, $XXX down billion to We're buybacks. I going buybacks consider in beginning Yeah. share the to going achieve year, you of debt translation, from well be also that down dollar. share as forecast at targeted

convert of used EURXXX dollar So $XXX debt, $XXX now is to only EURXXX debt. to

with the forecast leverage committed So it buybacks concerned -- our level doesn't not share unremarkable, previous necessarily -- we and we're on is the so not pretty we're offset to. of

Ghansham Panjabi

much. Awesome. Thanks so

Tim Donahue

You're welcome.

Operator

you. Thank

the line Next Truist Mike from Roxland question of Securities. of is

is line open. now Your

Mick Roxland

Thanks my taking Tim, Hi, questions. for Kevin.

Kevin Clothier

Mike. Hi,

Mick Roxland

in Can power policy hedging what you Europe. current remind just energy -- us

place I first have mentioned you so the in in believe hedges place in but half, you think you Kevin, in I half? hedges second that the

Kevin Clothier

So, XXXX. historically, we would percentage have coming costs a of greater into our hedged energy

thought we the were process the think the year. that, I come costs the expectation and would was see cost throughout elevated there down that was

were hedging So we power the in war -- the actions did impacted not in we obviously by hedge. And the not then Ukraine. took

So minor some year. place the next we in hedges we for hedges at have point, place quarter, this fourth have in for

looking it best actually you for And Tim if year is As this going honest, this one-time hedge hedge to be to cost, be European said, way to the we're because the a change contracts. hedge. to that's

going that, to cost at we're this the solution customer. have point pass is the to So, the to on

Mick Roxland

aim you any share -- hedge that to historical to to us? there that be would is you percentage aim And and able you. you Got with

Kevin Clothier

Say again.

Mick Roxland

guess, you’d particular a energy I historically? there of Is percentage, able to hedge

Kevin Clothier

Yeah. the you different look Historically could, two also to versus costs, -- there's you at, to you components energy the markets and have have electric, It's done unregulated closer probably you but have we’d be in have to energy dealing, probably regulated of gas much -- markets. as cost, we markets as honest.

the typically I would typically the we hedge exposure. markets me of So would we those to split in energy unregulated look unregulated front are, what markets the of hedge, in don't not regulated in typically markets but have we the would.

Mick Roxland

can And to just operations. to start companies It it. their follow-up, beverage Tim. seems of plant Got quick a beverage one number build adjacent their that own have

of adjacency I think to [indiscernible] big Heineken building or portion as Mexico. a building [indiscernible] in

as which [indiscernible] [indiscernible] have going in plant [indiscernible]. to has here to share have building is in well You a plans Brazil.

wonder trend ultimately accelerates? just you I means about it growth And this talk that slow for do growth you if cans as can think that -- will the trend demand what So and beverage industry? for could

Tim Donahue

the take expansion can the you example. had Yeah. built as and/or it is described, the most proceeds be other cans are adjacent can for I of Mexican use plants you operations. for to marketing that that operations that plant Mexican those And to that to mean, beer, from filling The and are described look the they actually historically initially gets brewery to can than be to margins operations less fillers in certainly margins look actually whether it get plant not that. be market, whole by can doesn't of seen and projects that whether leave a remains a seen it announced to these supply all at fillers built. circle would some I And remains It built. but us, of just do concern always that brewery. cans. with We it not it's for doesn't back mean to sell in going That

Mick Roxland

Thanks it. in luck quarter. much. the very Got Good

Tim Donahue

you. Thank

Operator

you. Thank

is of from question Angel Next Castillo Stanley. of Morgan line the

Your now line is open.

Angel Castillo

on Thanks free $XXX update of EBITDA? the I how about you taking changes flow, you're good question. to just the I kind cash an given morning. thinking last my give a us number think million recall number. Hi, Could is just for

on how update you're kind all that [indiscernible] of So the just the could you cetera? seeing with us working capital, et

Kevin Clothier

Yeah.

$XXX we're So the sticking with million.

Transit There inventory like. we kind some caught other was said, year. up we'd businesses the inventories bit than last higher Tim a at where little of As of business higher in were the end with got

So we've hole we're that put fill basically to to working looking with the in capital initiatives started place.

Angel Castillo

us levels and other implications is go that it Got aspects there Typically to by of through be in as you then asset. wondering But will as is? for I if maybe the more it. XXX% fair what happening color timeline more the just as up assume to to here? one, bit color That's inventory think tornado kind go ramp And there terms perhaps could through. as of of an of as dynamic. a of six was that helpful. little the just give Bowling running? is and you with any Or Green I year-end we Obviously the to months the kind to year up you what's

Tim Donahue

it's can ramp anywhere a months plant, products new sure the in not but plant curve on to depending through learning we're the that months changeovers, the the beverage running XX to told six of plant, size I'm assets, cetera. Yeah, geography, from et get is you a timeline can that or to learning size and who XX for beverage curve up a

just we the line for tornado two hit. a So running up months of had plant when couple on one, line brought the

started again. a the basically opening if will, you So where over learning restart, we was like new brand curve all

for team us we into process while everybody down like I position do to year curve we almost get end to in of North But expect year. learning be of through a the Bowling the beverage continue and brand and and Green stayed the will we've end it new better the was than far in got fortunately improve. a months. couple of year. us, would with plant And process. at So a we're America in are continuing the will good for lower the It's our next inventory

Angel Castillo

a that, of just follow-up that? or level of no rebuild inventory to quick kind try impact maybe to And that to to allocations on customers any

Tim Donahue

products Well, X% we earlier, way matter, many And X% for some and if somewhat to cans in hear But another as what because what listen, small of X% limited make described limitations say about whether cans still that by a I'm growth perhaps is some had demand to we we're lose to was nobody reasons. XX%. doesn't inflation to say we fortunate and make or slowing really or as about our I X% I’m were how likes that to X%, of described capacity them. say. that to perhaps couple It couldn't ability X% I did our we to for

helps small bit. us up catch a little perhaps some in So way this

Angel Castillo

Thank helpful. Very you.

Tim Donahue

Thank you.

Operator

you. Thank

is Next Capital the Viswanathan RBC line from Markets. question Arun of from

now Your open. is line

Arun Viswanathan

question. case, America. called base I in that? installed just just year, XX% in expectation of XXX of is and what's my XX% forecast? X% maybe we out have demand demand that place? maybe billion? installed that midpoint North Good any Is you growth Again, around America where morning. case. that risk driving North the a to taking the maybe remind could are Thanks if reiterate, just Great. the contracts or to around capacity units Was you us and And maybe that is next kind on was at XXX in there I capacity that it And you could for kind guess, first off, you think and of billion as your

Tim Donahue

it's saying too you're far million, think you're your XXX XXX off. million number, billion I demand million, whether and XXX or not XXX So,

And we Crown. probably contracts based I tell I will for number to that XXX we that place that year. other not it's you and growth national growth I of think couple last related your contracts this would imports means, mean year, have discussing last for million. to that have this used contracts Southern by you of it's year down certainly significantly year. next closer that in next for market year the is had described That customer haven't That for are years California growth. to does we installed number the the that capacity are we is in than XXX on versus million end

Arun Viswanathan

helpful. And could further. that's then take little just I this Okay, if kind of bit

up. won't have that think income think North inventory back the transit or will be you I it'll issues. 'XX necessarily be you won't get levels. don't segment But have America should be noted to up. should up, Europe I So steel Signode beverage you Europe in

of still eclipse you're expect and on maybe that understand kind to I up and down the materially. do should that be But things, be I right maybe to X% preliminary grow $X X% or billion So you it given your level? those outlook. all mean, 'XX

Tim Donahue

It's we I'm But not, you're agree going to you described, remind -- I would am just think me later. with. everything joking. I

continue food volume, the I learning business business as think more continuing to curve, back next can year. on see American we through of the American And I volume our to is North cans. two improve specifically higher in going more push we North to season plants think piece

the market food continues producer very pet We’re this going to a we pin a going primarily recover which a we're a is to year large are that two next We Notwithstanding contracts European grow. expect on cost put and volume next to that do will perform better. in that year. year, we North expect do as We're better currency although to to can't year push better can and I than more how American renegotiated. a really Brazil much presence, have have through energy, with business being food piece and

year, years And region. footprint on is the certainly bullish So exceptionally our like. an insignificant next number. anyway the I'm transit going steel over on you to next be Southeast grow. up should really a not year. and on write And unmatched continue we're better can not screw in the year, it have is a Asia to had this that that's to side, big five We guys procurement Asia Southeast it going

you all year. have together good pretty So yeah, and, should next year a that put we

Arun Viswanathan

do quickly if you CapEx, level of out, guess, think or get just, us 'XX? does And in that -- that -- could Is of say, just I million or new help just your kind the And lower? $XXX you when 'XX what’s will settle

Tim Donahue

used a let's just-- the have we I business. that a and remind US our global you global I point just not discuss a Let's made CapEx. business, to term earlier

as Mesquite it's that more Martinsville after to say can do the we currently that to fair think currently not any we have plans add any markets, North capacity here other space in does can I mean sit continues are beverage That there that not elsewhere. as to Asia today. be not beverage opportunities the other several grow in or Europe, global great that Southeast American

year be hand, cash the but going 'XX all in. would and of So that going we'll capacity same then the get but a could the we year lower, be still $X that’s could 'XX new and next really this on $X I got same say, to think to billion flow billion, you're too look Arguably, what see early like. it

capital So, that. the as capable business markets to support go the number flow should global from installed we higher more require previously capital higher that forward, cash is with

Arun Viswanathan

Thanks.

Tim Donahue

welcome. You're

Operator

Thank you.

Next Capital line question Anojja Shah BMO from the of is Markets. of

open. now is line Your

Anojja Shah

good Hi, morning.

Tim Donahue

morning. Good

Anojja Shah

transit back go for little to wanted I while. a to

I the in level back think XX% achieved have you in XXXX. margins

you the can behind back you initiatives, reduction level implemented inventory to issues or is the a once good long-term about there that Is cost you XX%? think ahead, and think do thinking you've opportunity? Just get that to more

Tim Donahue

which from underway. are administrative savings done putting math, should I well cost I but the the haven't aside overhead add. reductions,

million I X% of year to already, not it's math, that got you we this or even into much, losses first what that it's X% on not to put done performance, I'll $XX we a be had you, had our If you insignificant. or the the based back bet it's -- but maybe steel get half million just $XX

now different can can And in like margins business so, Yes. we and percentage because in I denominator. you and/or But towards pushing paper, certainly push just margins improve. improve, levels while in to aluminum through historical do the just is, through to go higher return caution answer beverage steel margins expect margins question can We plastic transit. commodities, of business. the it more that be down we're the where absolute

Anojja Shah

give America like Thank other number what in question, in Okay, great. were industry QX, us have you. sense a North CMI what for the you would can then my of been? And volumes

Tim Donahue

So beverage aerosol and saw I I CMI it's food released saw CMI release day. not the seen great question. volumes. have other -- can I volumes a

X%, food can't the up and like that's know. guessing add can’t look import-export mix, customer going mix piece I will number now need number, can So on CMI food -- numbers, market end market that beverage all know it guess, I was don't because just in been I take you to were a I but to know. two need you but released also they're then release cans, yet. And down and XX% I give a to not I the about we without number it's don't and we for from into account,

Anojja Shah

that. I for thought you internally, guys got it thank but you

Tim Donahue

welcome. You're

Operator

I'm Thank next you. The -- sorry. question

Tim Donahue

Anojja, did you have another question?

Anojja Shah

No, all set. Thank you.

Tim Donahue

Okay, thank you.

Operator

of Thank White from you. Bank. The is next of question Kyle line the Deutsche

Your now line open. is

Kyle White

volume for Hi, and of you are the preliminary In that what But a into Thanks XXXX. look kind region morning. good I appreciate full-year outlook in the questions. year expect America, for the you second half? this taking for of kind North providing

Tim Donahue

Yeah.

you that's and say to a X% of told -- So we'd and I think year I we the like at full for capacity we that bit to time or X% other. be looking probably seeing will -- last just X%, And think that's we X% we we're X% we're limitations off think now. talked up

and the but continue end improved better. perform more now, And at to of we salable performance market looking cans performance the to going means be, the do right where improved we're will we I think Just off think line. --

our here. So one of that's been constraints

Kyle White

then the And number is? actual to Green? adjusted Got sort just Bowling for to That’s you product X%, a think just actually clarify, what of that's do volume Yeah. it. X% not

Tim Donahue

number. absolute an That's Yes.

Kyle White

all Okay. the update from XQ or And then insurance of kind those any the Bowling you And into insurance into the included Green? on number? there terms of XQ it what expect any then Kevin, in have guidance proceeds, benefits on we should of do roll proceeds the you

Kevin Clothier

QX, in come in QX. to benefit have no would There's Yeah. it

Kyle White

the kind you expect included Got benefit, that you a that's it. from in EPS Are of what total full guidance? providing year

Kevin Clothier

I what saying Green. mean, we're look, we're is, costs to related cover to Bowling going all the

Tim Donahue

that, unrecovered said million I Kyle, -- have are So, what we $XX end in is of we costs. the through June earlier

that going to we're yet to use So is $XX terminology incurred that's not there million recover Kevin's been everything, recovered.

if and is $XX the over on we're and recover forecast you're it's above costs based the year, what not balance thinking million for incurred about going our occur third Kevin the will fourth So the saying to quarter. of quarter, that in

Kyle White

Yeah.

thought I mistaken the just bit higher was could I was little the So thought been – XQ. number have million in $XX a I XQ.

Tim Donahue

right. That's

said of second the So the I we unrecovered $XX only end have quarter, what we of the at unrecovered had at first million now was, million end the $XX quarter.

in $XX million we did quarter. incremental second recover So the

half, the fourth quarter. The other back $X recovery the in occur get to us to of $XX million million will in second primarily

Kyle White

it. Got it. turn That makes sense. over. I'll Appreciate it

Tim Donahue

you. Thank

Operator

Adam the KeyBanc. is from question next of of line The Thank you. Josephson

now Your line is open.

Adam Josephson

Tim, partners? morning. the taking which Kevin, for good you my much what of Thanks JV to you're have much questions. of estimate how billion handy very -- do $X.X to your you Kevin, belong guiding, EBITDA

Kevin Clothier

don't have Adam. I that

Tim Donahue

last but to I only me. in have being say, year guess of don't less this it’s year front it's of than down, because Brazil fair it I

Adam Josephson

range XXX-XXX-ish Tim Is think? reasonable you a

Tim Donahue

Sure.

Adam Josephson

Okay.

Adam Josephson

the out Kevin, your the And assumption of for and sensitivity guidance on parity in you laying currency thank second your half. just

side, can talk you energy assuming. the On what exactly you're about

below $XX because energy gas for Stream hour exactly per of fell drag your EURXXX today assumptions are open One What European year? that natural features I is megawatt million North again. part think as the

Kevin Clothier

Yeah.

will little we careful. be a Adam, So,

it, XX% of So overall natural terms natural XX%, call our gas in maybe of energy is gas, probably, cost.

to XXX. guidance say as proxy it would I like were other currencies. say, the a the where right which we -- the the we -- we range, XXX to range. in all that as is you we towards uses is for it's for use GTF, how And right it peg similar around the in So that euro were

electricity of proxy same unregulated time. The for we as there the You caution regulated the all they and you I'd could what is, thing move (ph) so use don't there's assumed as way markets necessarily the the markets, a well. only [TTF]

So little just with be careful that. a

Adam Josephson

I North one question on appreciate then last market. that. -- Anojja’s just about to one And back Tim, American the

similar we're the more some you If extent to you market would to market or growth the think slowed, you than had in rough all have year-to-date, it the I sense guess what was think bit any think up you which probably sense along you either just was up range? has trying second are quite of those a quarter, get to lines.

Tim Donahue

market in imports. June, up was up Adam, in it I'm the know. are how feeds Well, offset imports, what, much tell was touch we maybe think in it pretty up know I impact the for QX. don't shipments the softer don't I impact April on I little sure CMI I I was again, I a But don't year-on-year But bet and you and was lower. know. -- into then to year-on-year I May, don't but And I How second mean, of a for quarter. in know imports know. that going domestic certainly us, and the is the

Adam Josephson

a Thanks lot, Got Tim. it.

Tim Donahue

have we any or Nicole, that it? more do is You're questions welcome.

Operator

in queue. have don't any We questions

Tim Donahue

Thank you very much, Nicole.

So we'll now. Call joining concluded and the in October. you speak us. day to everyone, is Bye for thank you for again

Kevin Clothier

Thanks everyone.

Operator

Thank participating. you for today's That Thank conference. concludes you.

now may disconnect. You

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