CCK - Earnings call 4 2023 | Crown Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to Crown Holdings' Fourth Quarter 2023 Conference Call. [Operator Instructions] 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. Sir, you may begin.

Kevin Clothier

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

If already our website you available at it's don't crowncork.com. have the release, earnings on

be the On as vary materially statements. earnings making statements. could a such release, Actual this results number in we call, from forward-looking of will

Form cause filings. concerning release SEC our and could to XX-K XXXX is subsequent actual our and for information Additional that contained vary in filings, results factors in press including the

$X.XX were in the quarter year lower lower of Earnings offset share, quarter. compared earnings volumes share the costs for sales material compared quarter raw prior per $X.XX per X% were higher by other in in the Adjusted the in across to from quarter. volumes and most Net the year North pass-through prior benefited which businesses. to American were $X.XX, $X.XX beverage,

in prior of recovery in in more Segment higher beverage income $XXX to offsetting European was million volumes Beverage, $XXX compared costs. million year, underabsorption inflationary the cost reflecting quarter, than prior year's the Americas the the fixed Beverage in can of contractual

greater align can the and aerosol in Chi During company optimize beverage to footprint operational Batesville, supply will certain Vietnam, and and plants utilization, City, to the Minh efficiencies were markets Illinois, a to close demand Mississippi, actions decided in an beverage Decatur, necessary plant and Ho fixed in its cost can quarter, plant in lead These absorption. Singapore. and

the The driven a growth Beverage, prior in approach continued in initiatives included to $X.XXX cost spending. recovery record an driven company to by the year, management of year's flow in volume X% the of off-balance and was in exceptional 'XX, European improvement the compared by XXXX. $X.XXX of in and a contractual approximately disciplined delivered achieved factoring, cash sheet that million The Beverage the billion, working overall million also capital in reduction Americas of $XXX Transit EBITDA, record EBITDA adjusted company free inflationary $XXX X% cost-saving billion Packaging. For improvement capital

in in see strong EBITDA Beverage results Packaging we by aerosol performance demand. offset businesses can-making lower American to and XXXX were equipment XXXX, lower and record For as the with Transit line in continued due performance North the

shares the outstanding of the stated interest earnings -- approximately diluted to earnings million. interests levels are $X, full million; first expected a range rate to rate $XXX with $X.XX are expense $X.XX of common with dollar; in the approximately year euro to million. guidance in current be the The As in assumes be earnings interest and to be of range to of range $XXX $X.XX to release, quarter at noncontrolling the to net of depreciation $X.XX adjusted in shares million per It at million; adjusted $XXX per full $XXX tax be exchange includes share year with an of approximately projected approximately the XX%; X.XX projected to dividends share. of XXX average noncontrolling

free $XXX to adjusted to targeted of end our At be range we million in no lower $XXX of leverage year expect million, 'XX, cash full XXXX flow X.Xx would spending. the to of at $XXX range estimate than currently We net capital in more leverage end X.Xx. the to million with the be of

to that, Tim. call over the With turn I'll

Timothy Donahue

everyone. Kevin, morning and to you, good Thank

and above to earlier flow production we Cash working drive the year year's of the last Kevin was prior well in reflected night's fourth reviewed, fourth as Brazil, performance Europe America can just and in weakness performance schedules As capital. prior down significantly demand and well offsetting volumes the remained Beverage in ahead quarter. earnings strong as in operating Asia. expectations, North and was quarter release adjusted

the As were items, year. is, all the below to negative interest equity and has prior line earnings, case year, expense, been throughout pension that the

year, prior earnings. ahead mainly of earnings higher total, last In expectations but of tax short and rate due to lower equity a

a with among the faced EBITDA in and double-digit performance noted, than company Americas gains offsetting Packaging European for weak found percentage XXXX, As can the and aerosol segment businesses, and steel XXXX Transit more record X Kevin the from Beverage, headwinds largest demand. pricing

which but during expected based decision the we production necessary on noted, demand. market globally Kevin our made future newer as progress Also, cost future installed learning facilities adjust our view including of curve through to growth close with demand. structure and Difficult the facilities, X decisions, quarter, continue to to capacity, our fourth and

PPI be Looking one-way another business ahead a expect of strong glass growth and our of adjustment. although volume North to glass 'XX, somewhat we glass for in will Brazil, offset more glass, shipments, that X the After years project in year to Mexico. lag mix Americas by timing with returnable in we the change America Beverage, combined

quarter, We XXXX down fourth our the a segment the will in flatter shipments weighting market XXXX income the and of expect the Europe Southern projected do environment with to Northern were Europe, versus compared demand in Europe. In towards being mid-teens return our result to levels. shortfall more in

to service and business Other in And As all European the of all segment. remaining and XXXX quarter, is for sale the corporate tinplate completion Post European European for per release, associated million provided costs $XX totaling million you XXXX. business. of from it we as night's table, can agreements, deduce from to to $XX and recast million last million Beverage the the costs $X European Beverage relate $X Corporate the

each Volume in of purchasing higher against consumer inflation, softness continues effects base cost levels country region the declining with Asian which have to as the struggle noted to led power. we operate across was

in as weakness. XXXX, For projected line reductions income to be continuing is offset demand cost XXXX with

further with generated unlevered was highest than the realized performance XXXX, accelerates income again an half is back the of industrial strong, more in well despite that their Packaging growth when million significant forecast muted Free the to business again XXXX, in segment albeit being savings future. basis. in has backdrop. the structure the leading in towards Transit cost the industrial weighted activity benefits cash a Income $XXX for a cost of ever And segment the year. on positions for growth

Across can income XXXX, down in result XXXX of in is be can to orders our forecast continuing versus nonreportable businesses, a beverage aerosol the slowdown significant and for demand new manufacturing equipment. weak

XXXX, growth to the initiated in The pre-pandemic well capitalized the income As business levels, recall, category. manufacturing you downsizing quarter above North of equipment business, in response food slowing first in demand the with to for of equipment. pet is we can food may beverage American experience and continues a

equity learning view costs to plants significant to lead near higher curve. the market lower was million. segment higher as The We a future end of both action the line range. We XXXX of given year, form headwinds our demand, growth interest term targeted significant flow, deleveraging environment more U.S. of the capacity Operationally, demand below free the company Asia take which up meet strong and lower earnings. income will new production through pension for our rate allowing led significant in with than with interest generated did and higher progress on plan to to rightsize and the in to while $XXX cash utilizations

and remain transit line XXXX, for XXXX on with Looking We will strengthening in growth. businesses beverage ahead in the and and operational aerosols headwinds to be as future income well cash continued to generating balance sheet, equipment. improvements, offset segment in positioning is from growth focused further the projected the company

an we opportunity questions, allotted. ask questions call to just Bill, yourselves open are the Before with now the we questions. in ready to open time X to you everybody limit to that And call has that, that the we so

Operator

line George question Staphos of the coming from have We Bank America. of Instructions] the [Operator first of

George Staphos

the to details. you, Kevin. for thanks Tim, Same

Timothy Donahue

speak George, a you can up little?

George Staphos

Can Yes. Sure. me hear now? okay you

Timothy Donahue

Yes.

George Staphos

Okay.

questions. thanks Sorry details. all about Again, X that. the for My

from First you of one. inventory into that is and/or inventory down carryover of there all, question charge That's XXXX steel? still number work to any any on kind need higher

and quarters Question number Tim, obviously, go. two, come

some than Sometimes do better segments others.

why look sit rethinking it's we you you today? here you, aligned? quarter. earnings And Americas and good at the Beverage machinery in of portfolio think luck drivers as what in As be non-beverage you as maybe with seeing the transit the comfortable businesses, Thank can as still makes and segments, things tinplate do or the you're

Timothy Donahue

Sure, George.

line to the answer no, where go to the we in So going the is first tinplate with think question, business in much businesses. is the Inventory no forward pretty carryover. going

time any and conditions. your To gain in so is some of businesses not the substantial pretty I below sale the in it value -- to more because the give pretty But a second all I the question, sold true how terms guys our smaller. for equity cash. create right just mean, generate businesses we're business make multiple money, is. short-term private we understanding the answer we have can think getting difficult where under market away difficult driving These the I value listen, by is hopes business a

business price, can when the food a move good especially where valuation. business a a consider historically a sold very Didn't We couple years got very large of business. We needle a ago, you trades. on

a have I hard understanding So it. time

excellent about time talking low- is as you where wish business business I folks with I capital it, had cash to you it, have is transit about want day. this to didn't money to listen, mid-teens all to lot invest margins this X that more specifically but business. don't every Now talk spend and an mentioned, was don't business. the of a no because it requires a like I stable any businesses Pretty send me We almost did investment.

exception as a or COVID might But not markets, than might end servicing fluctuate markets, of end variety the we've stable more our said remarkably the before, stable other with be is the of Some year. businesses. as they of business,

were fresheners They're food well, is market, in pre-pandemic lot say expensive are goals, They're it way that you'd The not not as into There the well, the some happening business their some plastic. despite dispense to an things to doing we aerosol an steel. a aluminum market. capitalized, and/or now in would air are a tinplate said, levels. large you I metal see that their meet all well go income businesses, products. claims the environmental quite anymore. Aerosol, in to of is, CPGs, if above of

we'll there. we to is see and to We're So rightsize future the expect where what goes it demand be, it changing business from business. a for going

beverage of for project I business, equipment new or there an installed that year that and The are new of number business service a year machine predominantly business, with next us few the exception it's globally, this orders excellent China. a for parts being can it's and lines a years. would been that

rightsized mechanics beverage our skilled us that We've markets other on. hold and can business. we'll so besides the equipment. technicians end serve see what And We'll can

quarter first you and won't year, the But in in the analyst, analysts but me the George, called and which last kind one I of charge is mine. this this coal of is a we took say canary afterwards said,

because was beverage reduced business future expected and up understand as your going a growth about the of taking can talked You big with nobody if equipment expected brought in nobody to wanted charge question, on demand what beverage.

to my And leave I'll But apologize so George. question, answer so your I answer a long-winded that's future for to being question. that long.

George Staphos

the over. all. luck We'll No, appreciate and And good thanks, Tim, the We at in it not quarter. turn thoughts.

Timothy Donahue

you. Thank

Operator

Thank you.

move of coming from will of question now to Phil We Jefferies. the next the line Ng

Philip Ng

the of of the guys is hopefully, your the front-end loaded of maybe kind your look of kick things seems headwinds. later year, year might of EPS versus, the be in I terms be at year big of more And could if that can some guidance, weighing step parts to flesh Tim, XQ a if any you down. in? good the it part that kind in out results early earnings other on full

Timothy Donahue

Yes.

to These that of and from than I pick that's or back bit estimates, move that a direction. anticipated, we be to the the your the probably going would more -- result more European of up I have think reported weaker say what that of market and QX trying do in quarter estimates. And your guidance the largely were I estimate while towards first being QX not would versus -- in you a for QX. we we would smaller the summer again, 'XX, opposite QX ours. European in Beverage, first not quarter was would our we 'XX, understand weighted, quarter your back 'XX expect we're have expect to somewhat and

versus QX million handful $XX probably million alone, QX order makes strong numbers very of year, And equipment a had we then you our segments, another the and equipment last probably 'XX. other businesses, in the then bet the And business up to QX me, in the in down if 'XX of I'll $XX I'll you I shortfall. of result front bet in aerosol had

buckets. be So they the would X

Philip Ng

give been already is what's inventory Certainly, flushed shoots see patterns right in in then And are Okay. I I telegraphed, Europe? us to well Europe? Europe? can customers soft. follow your green on with a on in out one more any terms it's things Are really you Where mean, in color of starting you going little now? And Europe on. order guess has

D&A On you potentially tailwind. in that side, the that the talked already? something Or a Is guys guide about XX that...? is

Timothy Donahue

No, it's in the guide already.

as are said stronger we in Europe. Northern remarks, prepared I in Europe, the in than think we are in I Europe much So Southern

well did Turkey, those our So markets weaker to Greece. countries. if than the Southern Spain, were Continental Middle Italy, East and in quite you actually the significantly want weakness European think European was but And the Northern We in markets. about

there I promotion are retail down that what Europe that for year, pretty in long. a the -- from are year. quick stay back do some but that it a might see much I a It And generally is -- generally than X will customer certainly year and we bounce we a market grow North things a we a think year, It's America. think down -- market market European but this not than if than different perspective that Europe, perspective a within down in more year. be doesn't in have

expect although be some I beginning -- projecting and to QX, weak, Europe we're QX in do expect do strength forward. I So weak

Philip Ng

Have still you get up this channel point, or inventory like patterns call? the orders to at order and down seen early pick flushed too

Timothy Donahue

too it's No, I think still that. early for

Operator

from question of of Mike We line Securities. will now coming Roxland the next move to the Truist

Michael Roxland

that [ increases. wanted We've about relates kind retailers impact if it last one be expect agreement it it Just you follow do been other And selling are reached same. Europe, XUP asked especially hearing given retailers these CPGs? between if and you Europe? these that doing of Has demand do an and of Europe to [indiscernible] ] as retailers, in some up price explore -- impacted Pepsi stop been the on in and that to has, the that can't to unacceptable demand

Timothy Donahue

energy is things don't with think us because of other what's just affects I to with Well, this the the the it's of in chain their the brand faced control they're than has the Europe and products costs. pressure do does on all impacting particular the think retail all Part large that replaced demand other around is shelves. issue that government retailer. expulsion other it one inflation in more on a consumer I with, Europe from from with the

company. a my retailer, by view, the looking I think retailer problem blame the putting government And in the avoid soft to on big drink so is the

is punished charging pricing the charge I walk the you perhaps and for other shelf, whereas think if for retail beverages soft on their company, they're through soft they're you store, in drink beverages what but store, to the somebody highest see they store. were drinks, to the not was not it would being that particular be and -- entire is highest portfolio, snacks across the have in soft their do drink the if products

on retailer created guy they're then finger at have has end of point the points somebody So overreaching lower of central the they and as I paint that the CPG. the trying the the retailer, specifically scale, finger do think their at but with their and else to us, and more a first government world bad the in regulation banks all for this around to -- problem consumers

expulsion But say specifically, I'll consumer, the the again, will across So inflation again, of -- does one just out itself sort is of expulsion it impacts demand. It's in a for demand the buckets What cost impact product. product notably not variety replaced another time. significant this with energy.

Michael Roxland

think your additional do Do runway benefited highly company a just And some of not something that lot is it. I America. is versus you on still you North think respect that some How mean with one there's [indiscernible]? much think those recent share gains of to do the have share peers you has in years? Or Got quick gains? you ]? follow-up [ a

Timothy Donahue

How well, been we've it that say I say me not this -- I say this. would let way.

I gains think to probably to of wanting the customers which is -- from where is the where do were share you foolish. XXXX that to share the be for -- years. beyond others market rebalance. me higher by that marketplace. to by able extremely couple responsible aspirations I business tried think next not were others, something somebody sit, we've moves should suppliers end I versus result in in we've significant experienced the from of be the understand appreciate and we think for of we margins it's That fulfilled have the more we margins customers that, and/or by the to going does say, unless likely the grow be that of end think our It'd a vis-a-vis set difficult to way

Michael Roxland

it. Good XXXX. for luck Got

Timothy Donahue

Thank you.

Operator

We will line the move coming the to RW Panjabi now Baird. Ghansham from of of question next

Ghansham Panjabi

could, XXXX. an first off could $X.XX if EPS earnings for the we Maybe bridge, you off with in of start

called EPS those impacts useful right, a out non-reportable. savings, on, in you change lot and last the have cost of asset, life on sort going issue bridge? Can You for the you dimensionalize

Timothy Donahue

Yes.

have? $X.XX to change. do $X.XX coming So coming what roughly depreciation We've the -- got $X.XX we from from

prior higher year's You've capital just from depreciation got year-on-year investment.

a So the year's changes it's X/X investment. I from prior say depreciation offset probably depreciation higher capital by of but it's wouldn't wash,

You got the restructuring. benefits of

mix bet that combine down the equipment, could you equipment aerosols be that Ghansham, if pretty then year-on-year, And got And if in I took business, -- in you've you headwinds you sizable $XX Mexico. on glass the the lag versus one-way of for down Mexican more PPI million. PPI on We're and Mexico. could a X-year Aerosols returnable lag. order in basis be

by So it and pay go as and down, I year, in in buckets, year. next $XX either looking pay equipment we and those say, up it some you're Mexico, we'll year get the took it But we're and million or at it this gains. year utility gains combined would next you offset get prices across X aerosol the get and next the where if cycle restructuring it business, volume

Ghansham Panjabi

that number? restructuring, savings cost is associated what the And with the

Timothy Donahue

it million, factory. get Yes. built I year, slow acquired. Generally, The plants company next was were We've are in. we X-year like sound's with plants Think older and speed we'll paybacks. in the built But $XX these them as the more X were they median year. everything we sped speed about there about the in They this done. never lines. mean by think get a built were market X initially high-speed have the early 'XXs up, like in -- it line Asia built been should built can't today's in -- These a compete marketplace, are lines.

great So would the because imagine, they begin otherwise as savings expensive are weren't not very to you with. as there

to remember, You depreciation -- go don't out, savings. plant there's take you on an old a it, got you the you to get so depreciation no

Ghansham Panjabi

one-off of then is shutdown North a approach holistic And adjustment? Or in in optimizing North that towards part sort of a Mississippi, on is the sort Understood. Yes. just that's footprint America? your something this more with of America,

an going financing to be in off-balance so, to just how XXXX. was unwind, XXXX headwind as it Is on million $XXX incremental And that question, sheet the think last the just then And well? I clarify, much? if in

Timothy Donahue

reduce capital of We form, sheet $XXX We're It XXXX. financing the trying of $XXX We not optimize cost of in probably the generated took another to million just off-balance finance of working on order be it's to of cash. a opportunity source -- million headwind the financing. Ghansham. just to the will

the of bet and is it XX mid-XXs. our closure we we're XX Batesville, you down XX by offset probably buying industry off post So are described utilization [ Batesville, to to I'll that now, the ] I that balance ]. rates as of [ sheet. The one-off, right to XX you closure

America. good So in pretty we're balance North in

Operator

Adam Samuelson now of the question Goldman move will the to from next Sachs. coming line We of

Adam Samuelson

price just against effectively Are we of we talk And about those you the question, of outlook incremental should the mix kind if First could talked point? did annualized income just here kind margins savings on specifically. volume, assumptions but the we growth, And line Transit unpack actions? at can any -- just from if think maybe about improve? I you outlook think Is know there the about carryover that? this how year, for demand from top about as restructuring actually the

Timothy Donahue

Yes.

So business all as a we we it GDP-like the described when you acquired think to in XXXX I business.

I been is So large in activity a with reductions that as you over you going inorganic, able the tell a organic or little of years. is offset this know, volume grow to GDP. with the you, to volume of couple And give plan down. that describe difficult absence to the it's business capital can to you industrial We've cost I'd but last dollars.

full Our X.X%. on for in the volume volume of were of dollars. the dollars And X.X%. the QX order down down in That's we're year, order

you the results, as that price/cost significantly cost obviously, management. income better by offset and reduction But activities was tell could by

the expect X the no and bit dollars hearing income experience with but growth again, that continue transit, towards a like you be returns offset the -- a would than low- capital. mid-teens you more I in first that business we it's half looking cost, the a year. business, know Qs half because weighted But of volume to of this first to don't but tired that headwind. that pretty solid again, So We'll year, of X to on the we're are generates guys to

Adam Samuelson

Americas the Okay. Beverage. color. then going over just No, helpful that's to And

on non-reportables, so million, Mexico. the headwind whole other I of inclusive or up PPI with segment million be, what, $XX in Mexico what glass headwind but the to $XX is the lumped You presume

assumption So the volume embedded... think us just about help

Timothy Donahue

headwind and Brazil, No, offset in I America think in Mexico. Beverage, it's Americas you've I'd mostly and the say by got North growth

flat largely headwind. the given year-on-year is segment the So I Mexican think

Adam Samuelson

what's Americas North volume or within volumes for for And it. Brazil America and that? the assumption -- Got

Timothy Donahue

market to the And that ourselves, and than the in or 'XX think to we remind that small any so again, up project and month, X%. to market, X% North to and we'd of but is down up X% more on to X% And on I'd X%, range. X%. excited America think kind We -- in down it's see to to up said month was I Having be that 'XX. in So flat projecting obviously, about the about rocketing ourselves, it off get we 'XX, was we're a currently it's in too of Brazil, that, the up January just suggest X market in why X% flat the a order you be to don't we was believe start, so market we X% don't up it. X%.

Operator

the move will of Capital Arun now next the Markets. to coming line Viswanathan question from We RBC of

Arun Viswanathan

that billion to of -- also right? the EBIT $X of a $X.XX. range. And reduction coming So so that's in in expecting kind line, is that EBITDA we that would million $XX segment down first of annualize And billion the kind up kind I in through We're guidance around $X.XX you the $XX you're it of your million. that imply guess, the $X.XX of with [indiscernible] looks depreciation question, EBITDA about if or Americas. like in then or on walk then

So just of wanted I those to clarify kinds questions.

Timothy Donahue

again? the you ask second Can question

Arun Viswanathan

ahead. go Sorry,

Timothy Donahue

question. EBITDA the answer I'll

ask question me second the again. to got You

within the number million We're just had of you low. to So $XX too EBITDA in number quoted, far billion $X.XXX we that if $XX 'XX. of in 'XX, million

XX.XX think So XX.XX ]. [ about to

was you're So off well number. then And question? second your what that

Arun Viswanathan

Yes, down? still maybe expecting would It that you in Americas? appear the second are be expecting EBIT was, flat are that to there? growth the segment question that what does for Or you

Timothy Donahue

No, no.

So we I year-on-year, glass question, Mexico. in and in to and Brazil, that's by answered Adam's North offset America I think just growth what said flat

Arun Viswanathan

if just last could squeeze one in one, then And Okay. I sorry.

but you of that little think about I Or much other the business? this when aluminum been would way use any there a is that and asked businesses, consider more necessarily you've capital? know little -- shift into So before, not could is good a volatility is aerosol then that it you the is you surprising so maybe bit there a

Timothy Donahue

could I cans. it aerosol, don't with aluminum economics we Well, you that And doesn't think in D&I incremental expensive. provide anything. you like see really particularly consider of beverage the growth doing opportunities the I

is you the the there's to line that add extruded one So X it increase units aluminum gives really Y aerosol units. X output of equipment units number And no impact on can of one to generally way to line. to those

If need want more you you to add more units, lines.

the into me, businesses, lot difficult -- it money. can okay, are expensive in talk talk getting you're for if business, already -- you're into it's spending yourself a So an really into of like more that in uses if business. yourself already to it, you There It's better of capital.

Operator

question of Anthony line coming Pettinari We now from Citigroup. of next the to will the move

Anthony Pettinari

talk in when might could like be growth. intensity region bit about intensity Asia was mid-single-digit was characterize of environment? and foreign just within years of of added. a you sort get back to Japan to the just this able plus entrants if wondering competitive you was several and Are for little It growing a seems I of competitive the you capacity impacting Or from kind how China region? or you kind lot seeing

Timothy Donahue

Good question.

The first much looking is into consumer year thing in to America. or is weak. I that headwind real used we're with faced the North last say to Western would you just it's And Europe year consumer is weaker that start this than the and a

had is stimulus for if kind of we would obviously. we And volume growth, really help economic in some need that, what so And the region.

Southeast a which declining mid-single they've defined experience achievable years, incremental last amount years, last in give mostly in adequate market as the a capacity consumer Albeit and some digits, China, Now market has purchasing had been where power. of power. X.X continuing been the that's like Southeast capacity over a decided, there would installed to obviously small. level are has that concern you we're not if but There was there there growth the Asia, Asia significant -- with should X in adequate being installed be to very growth in more purchasing

So point. that's this real challenge the at

Anthony Pettinari

helpful. up just That's question. think it And I was following Okay. on, Ghansham's then

you If for X $XX I and an think I that those machinery aerosol identified Mexico right things? got million can-making headwind as potentially.

Timothy Donahue

Rough number, yes.

Anthony Pettinari

Yes. about kind picture on It's Mexico from obviously too that perspective, early you'd to pass-through big of to correctly. characterized in expect that 'XX. just think back a 'XX, if come I But

we're the aerosol those some gets year at better and can-making where think not? it on? recovery you earnings kind the maybe 'XX Like do within businesses potential how would and for cycle or think mean, as I machinery, you goes are trough? For just do of characterize you of in the kind a

Timothy Donahue

year, you next as year earlier, comes equipment a for previous are business, and be sold Can-making Mexico, I said -- installed. we this So equipment no parts as and doubt. service stated, business back will

be So minimal year. less headwind there because sold, machines -- sold there no next year will be from won't a machines this

after. probably China, that beverage future, don't come where growth outside I So probably don't forecast cans in the future, the there expect further for need for 'XX phenomenon. will business enough back rates in in of equipment -- there see and but be will I that's global and 'XX on see after that it's But based do will can but be any more market. the beverage we lines a growth installed that we

some are Aerosols, in aerosol things there said, as the I happening business.

year business substrate be better. others worse, pick but see say by could marketplace. some the X the I pickup up demand some certainly, gets -- the is better behavior change business that or And in would We some I the plastic. I any there's a of demand need business. perhaps some before it don't think it getting would that in to

Operator

Fargo move of from the line question will to Gabe Hajde We Securities. Wells next of the now coming

Gabe Hajde

bear starting point. tough and Tim, pre-pandemic segment about wanted here. a always up, million. at it's me you're if ask to I question $XXX look to Americas with a I maybe pick Bev, sort But know, I profit, don't of

I there's units billion more maybe think roughly XX sold.

million. million you gave that maybe So to $XXX $XXX

replicating I'm intensity $XXX price America. there. competitive curious, so there's or of mix favorable So another in just and North in of million the question sort

forward, find conflict and of into feel there utilized ships into in middle low-XXs. a the of the Middle sense bit then of talked Eastern similar to you Europe. and and mid-XXs that your 'XX decade as different but relates sustainable? And outlook cans You of that your any Europe, as East, do and whenever sometimes way improved system into some a that fear Western Eastern about then a question Bev? market, we there's go rest the is But in being those profitability little risk Is like the the Europe their Europe maybe the in it Europe

Timothy Donahue

No.

remained of question, think remained I the answer Middle very conflict, despite -- the the East to has firm. second part your has

the the I different, volume is but are perhaps similar think to the higher. -- labels

challenge that just see you that don't we So described.

rates So that no the North These mid-XXs utilization as America, I to think remain there's can't why low- we high very utilization disciplined rates. in at an industry reason are levels.

-- beyond I absence So share we the in shifts doing in the said somebody as earlier, absence foolish, something XXXX. don't significant of see

Gabe Hajde

sort the on sort equipment And to think the suggest try $XX is us? medium-term telling I'm take from And business North total of our growth of like, I you we consolidation mishear in us of tell business plant then the your to hey, savings to and what restructuring equipment America, of Or X% a trying million ones. growth? at terms normalized that efforts? up should in comments to outlook you're X that's going that of are how bev your in sort did that flat Okay. and then sneak does spot, I about last X

Timothy Donahue

announced obviously, I through mean, this year. -- don't No, takes I the a more say year, the rate. beverage sales to plant on that point, this go remaining the you and realize considering million it system. a say this low closed with benefits up. the any the the think I get $XX time next come them, next get or when run some I to this wouldn't sales can would is back normal is we machine business, project Clearly, profits equipment year. year return, machine you

North it's that think as last the don't project X% more market will think sit here I the do to X hard than grow to any after we American years today this the that I So X%. beverage for is normal.

I see I growing but don't market year, to growth this more market know grow that, higher than others for we're some more but the than that that. than the aspirations going have

more that you're over new sell much about that, volume the significant need do incredible an -- sell me As of volume smarter and value now they they to target you market they've for to I'm have understand they're by their wouldn't amounts much would loss promotions. realized. offset offset model. to the hard sure promotions to a in more a customers volume price way understand know, that how projecting I But if It's price than have to market. they And incredibly you'd

to a that's X promoted. talking XX-pack buy now, a $X about for that's case. if $XX for So used $X, versus a And if X, even $XX get a Gabe, you're promoted, case be case not

price the into sin like them. underpricing them and how market. understand they all inflation you sins. the business, right anymore. the can create put direction significant volume of for they don't to for keep moving reverse they I think Hard to covers in So understand their all that that product always that say I want profits Well,

that think I the fair to a sit as probably market assessment here we So for X% X% today. is

Operator

We Edlain will line of of the from next now Mizuho. move question coming the to Rodriguez

Edlain Rodriguez

think the is for ones will what in do One a now? driving right half Beverage, we're you the quick as drive on Two seeing European what softness me. second And rebound you expected?

you will long talked business. it in where And about you how get take the to be you want aerosol one, think then the second you've there? do rightsizing to But to

Timothy Donahue

the we closure of Second announced question, listen, Decatur. I think

in we're a think better I position much Decatur the after closure.

little volume a industry. earlier, you volume think, bit back a you're I need, to better said across leave the as I have perhaps help. it more a at would little you And that. behavior capacity brings little Now I'll more about the

-- On right the is challenge we Europe, pressure now consumer I incredible say you said as earlier, have under the is challenge probably well, the across others as Europe. heard that

confidence, think, business at right can look low of stays been the But I now. across to Europe long. Europe any where index where periods do we've measure had pretty or it's were it economic consumer you activity down down, before If never as for has I in earlier, said

here pickup late in the see summer get the into So to second a I start think the summer we months, summer. months as by quarter do the we'll through

Operator

from last of the line the America. of person have We of ask question George Staphos Bank to coming a

George Staphos

I you $XX just only savings talking want it's would of factually, $XX we're make restructuring 'XX, the the out sure, is of February say And about recognizing to into carryover million? this 'XX? a year, million it's what

growth you Beverage if mentioned, for for year, it And And figure a turn over. had this figure? had I missed with then I'll if European secondly, is you can what Tim, it, that that,

Timothy Donahue

Thanks, George.

in million another I and So year. think are next year $XX Keeping all mind, old plants. $XX million these this perhaps

see depreciation there plant So you you old. is not no from savings right? that years XX-plus depreciation, that's So the a get don't

expecting X% Crown environment in For Europe, XXXX. we're volume a so for flatter, to X%

think X% order I market X%. the up the of on to

George Staphos

better things of Crown secular and it get we've years. sound number It Tim, going I'll last One for globally, But a obviously And followed term. it's a one. aerosol talked the are for you measurably from North double entirety longer business, to of basis maybe business a relation doesn't about America like in I recognize the up small in and here. Crown. as to

doesn't as it, still it like? So forward. that to ultimately in it some is could it's yes, for really do, stays but you so Or you've it's seem it American that driver tinplate? parse of Is real to so yes, get integrated going the you you sound North hard you maybe like rest volume growth, something a rightsized it the tinplate, as you're and long from which

Timothy Donahue

question. Good Yes.

integrated. It the it any So think get doesn't in Yes, worse where you're better doesn't -- 'XX. in projecting we're from I we're right. but get future, listen, measurably at where is it

the as and print to and know, process very as the anybody, cut, you aerosols well you I and know integrated. -- coat across George, about As think sheet this food,

You it leads but than could it out, to more carve it's worth. probably dissynergies

flow businesses, the of of businesses to North business free any but the you'd replace still think any as again, cash you selling sell or these to you're how sizable annual And a flow We have I generate American prospect X said if table, of cash is a amount specifically basis. earlier, across about the combination on on an going tinplate. always

any don't not think these I capital spend you in any aerosol to And business. As capital earlier in the addressed consider, interested aluminum spend why we we're businesses. I

cash for we these those until for we something them else breaks, they cash we'll run And So but cash. specifically continue are businesses, run run -- to positive.

said that the question. last you Bill, was So think I

now. again the after for the thank April joining in completion to Thanks we very we'll Bye first of and much. quarter. So you everybody us, speak

Operator

for Thank joining. you. everyone, today's Thank you conference. concludes And much, so that

great may You and have now day. disconnect, a

Crown (CCK) 6 Feb 242023 Q4 Earnings call transcript