Crown (CCK) 30 Apr 242024 Q1 Earnings call transcript

Company Profile

Participants

Kevin Clothier	executive
Timothy Donahue	executive
Ghansham Panjabi	analyst
Andrew Orme	analyst
Anthony Pettinari	analyst
George Staphos	analyst
Philip Ng	analyst
Michael Leithead	analyst
Adam Samuelson	analyst
Gabe Hajde	analyst
Arun Viswanathan	analyst
Niccolo Piccini	analyst
Edlain Rodriguez	analyst

Call transcript

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Operator

Good morning, and welcome to Crown Holdings First Quarter 2024 Conference Call. [Operator Instructions] Please be advised that this is -- 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

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

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

the and last lower strong capital quarter to at $XXX remains in beverage for same driven $XXX million, by $X most prior subsequent compared our were materials, costs, leverage at Net per working information operating filings. Earnings compared for in Beverage, the million reflecting contained concerning in the capital to was diluted $XXX share to vary to global $X.XX balance raw is XX-K businesses. Segment earnings beverage quarter. related by results income million flow to in were quarter year. prior the improved include factors other Additional the in Adjusted year, the year, prior sales to reflecting Form end release $XX facility for $X.XX that for and million prior per volumes SEC X.Xx and in fire. Free and $X.XX cash higher shipments results in XXXX compared lower European in share quarter quarter in from the including and could period of higher volumes compared quarter. year in the Americas and pass-through net lower diluted other year flow cause a billion the lower actual diluted business which $X million the improved filings by the to for improved spending. X.Xx press offset with can cash offset per billion share compared quarter corporate $X.X sheet the lower by of The costs were $X.XX

to range range to to million, expense release, $X.XX, earnings share be $X.XX the per to year As second levels; estimate of million. We $XXX rates to of tax net to average At approximately to of over the stated shares quarter the full more the year XXX currently full $XXX common rate earnings share. leverage $XXX noncontrolling current XX%; exchange per approximately million; and range than call the be of to that, at includes to million are we lower the million approximately guidance million I'll with range be of capital of interest X.Xx. With dividends with at projected turn of in diluted $XXX full in projected $X.XX would earnings 'XX, depreciation to in the XXXX year end expect noncontrolling flow of net leverage of cash million of The free $XXX end outstanding $XXX approximately to $XXX no adjusted of $XXX range million; interest spending. interest targeted the X adjusted in be million; Tim. in $X.XX with of

Timothy Donahue

we'll thank morning, call Good and you. brief, very questions. to going be I'm then open Kevin, everyone. actually to the

with North year mid-teens Brazil quarter, strong against of unit last recorded the volume more in lower X% of growth As very our beverage first the volume for in capital X% flow the usage, prior Brazil. shipments in offset lower summarized, back in Europe, XXXX. In in shipments of Europe. Perhaps beverage America that working lower Europe, sentiment in from versus We just Brazil for to Beverage America year's market grew CapEx. reflects in also benefits where came beverage performance as too maintain strong, prior were than which and in in shipment year an better-than-expected the reflected earnings mid-single-digit in Europe market Northern the a strong performance weighting more quarter, first and Southern performed business comparison results shipments XX%. early than And to can to expect shipments a months quarter. Americas and our growth ago. full we Increased overall we're growth in more North reflecting shipments only states X delivered growth towards performance with American bounced to as target the decline positive night's first to Asia. Cash And with better contrast but combined and X% region, and year. April destocking last the a quarter nicely fourth the X%, quarter our low combined represented, again grew Europe X% heavily release North of while declare the fourth up can global the is XX% was Kevin Gulf cans due than both over inflection in

full will segment expect level. the relocation is We U.K. our the with continue income plant the XXXX Peterborough exceed to in start-up. from complete XXXX plant Braunstone And now

the Asia from pruning advanced offset in as volumes. lower the expect offset more year continued quarter We cost lower performance region. than impact segment capacity in as fourth income X% full XX% Pacific in do shipments of the Our initiated benefits income improvement reduction the efforts in

the during freight the both in was As accounted to of expected, of than for equally business, income protective and prior XX% transit quarter. businesses first and income. down more various lines to and contributing the first revenues reflecting to price with revenue industry the Specific volume shortfall year, the the performance products weakness overall the quarter in decline

line in previously expectations can that expecting industry. beverage demand second and with later the trucking and Performance for in conditions other reflects improve aerosol lower to half, discussed. cans across equipment the We are we

very continuing we So and quarter. momentum the in summary, that cans good start second the a to had see beverage into year,

EBITDA significant and we free levels cash are North previously headwinds take for think, Ell, generate the now maintain of We ready to flow grow match and to continue a was we to company, to America, XXXX share margins performance more per despite the with restore share. I aim questions. that, in record year that discussed. And and appropriate

Operator

question [Operator Instructions] Panjabi Baird. comes Our RW of Ghansham the from of line first

Ghansham Panjabi

Tim, America mentioned for the you're X% of part you that that. XXXX, gains forecasting share growth in North were

share too reported is. to as this were look peers One they having talking share, when as last lost give out confidence about what having you tell? towards of to to that on week, sight that XXXX filling your share early a point? is it we of us time and period line Or your at your position sense Can

Timothy Donahue

where sit slightly our here see today, that believe first on growth are positive I target for we We said year. versus other year extremely we lighter slight that the the our for correction, slight X% confident tell as a in And quarter, even in seeing one just -- on in that promotions anything past, And promotions we today. are to reconfirmed I X% we would So based we so to sporadic the Ghansham. had and comment in used you X% America the what other no or I X%, of -- said, be to can't would this of have more a share North peers but correction. would just we're the X% in I to 'XX than do reason activity, that that we this

Ghansham Panjabi

then the hear. on to And Okay. for improvement. my That's second APAC, question great

terms quarter? your in some about a well customers for from think regions on How feeling I of overall an relative what talking delivered as a such the region basis of first standpoint are growth Vietnam to in were you that you improvement in relative as them. about sustainability

Timothy Donahue

shipment out I to do first said, order shipments And capacity XX% was So in the Asia -- think lines. quarter. the are market think we our our shipments our We X% out lower as probably down X%. took took in And pruning. we the versus market X of Southeast reflective in the of -- up I

So program, lines if had my sit we before I now think operating the have can XX. of and top here we head, today off the XX to have beverage I

of the in So we to XX% capacity. the of the took XX% to of more out probably order lines, of to XX% capacity XX% or XX% -- XX%

capacity term. we So appropriate more see in cost what realignment, for reduction, the near

term, think expectations for cost to growth. for positioned grow. will, that and And great still medium more market Asian exceptionally that think we the X Southeast structure I of have to the years, reflective the We market continue So over well the do is X we're now.

Operator

next Chris Our of Parkinson comes from line of question the Research. Wolfe

Andrew Orme

It's Andrew Chris. for on

by how Beverage the main breakdown geography but did by Our question speak able you so beer, seltzer, -- to category category, be by other would is not products? to only volume Americas

Timothy Donahue

we're more sparkling but heavily we in drinks, I'd say QX, market had exports, from in what flat appears in on up commentary now. All Brazil, North waters, Colombia, Mexico weighted up do down America, beer. performance. nonalcoholic, Mexico. more from We the the that numbers towards And up CMI America, companies, peer heavily in solid teas, some and everybody nonalcoholic So North digits but in mid-single weighted alcoholic including cetera. And are and a X%. North based we do in X% in the soft -- in carbonated and other pretty we then to have we're was juices, X% reports weighted CMI, that the not we towards et it flattish get Brazil, made although heavily America, were

we're good X% up growing pretty and So we feel and about that, margin.

just market of growing sake not for an think we for estimate margin. And to we that if the thought -- I we're would gave this -- growth's do few important year. improve topic, while is The the that, thing on I'm months I ago, we're we growing you what just a

February, we market the I QX. to So in said X%. expected And time up at flat early be market to the in the think flat we

And that know change said, up that. and is margin, necessarily the thing. more X%, going want business, to concern. my important we're growing you we're growing can to do I Not than overall which as I If flat that. our our up to we're to you be

Operator

question next Citigroup. of from of line comes Our Anthony the Pettinari

Anthony Pettinari

opportunity, you And of feel levels with, can if Or CapEx there just some much you that efficiency lost the bring do continuous plants any like In there some how during guess, that especially a newer Are I coming of how I out you system? efficiency curious think wondering just maybe of you're the that terms kind quantification of down in the haven't looking I'm detail pandemic? reached improvement. think about 'XX? could provide reference 'XX, of the that release, you kind for? was to you you was operational or

Timothy Donahue

I I the rose during would up question. pandemic. our were tell and tell factories think lost see, the would incredible the opposite. any the Great during efficiency And they would they teams wonderful. pandemic. were we that in I actually, you don't you I that absolutely

workforces in capacity system, new or I think losses hired a around, are take support learning people cans, and depending move natural increased move heard months learning others effect a as putting you you XX efficiency to how and disrupt that's anywhere from around curve can and XX is to as the the any spoilage of make factory. on newly particular you us describe you've

improvement new the made be goal So is in get factories, I seasoned always to there's the the even more obviously, in better. think factories. And to

And plant have a the we that today, might so plant. is best performing

be. not may it year, Next

goal is try again. become for So plant to the them the to best-performing

upon things. substrates value product around We to and package things. So only spoilage, Those of around used cans insignificant the but think proposition service, to our are to but variety and about aim price as of and oftentimes, as quality products. end deliver number, and they that not all deliver the out look the a -- our businesses productivity their us to customers, at shelf they the the as on world. It's productivity, in we compared used deliver to we the number to of it's as principally other gains. them that achieve incumbent a competitive deal not them the make it's possible with, our for back as good market for the gains more it's globally possible less make as best competitive them And an variety line, a we

for them keep ourselves. we Sometimes

and which the to customers the helps turn in Sometimes to the they're use in transferred business, future. market their customers, that us

Anthony Pettinari

That's interest Okay. EPS the just helpful. year million, on reiterated very $XX the guidance, maybe minority I full but And bumped guide. up think by then you

the So EBITDA is full does and initial expectations? don't puts higher? there, just if versus go there's but how in year I other takes Or on EBITDA underlying view know

Kevin Clothier

in generally, those million be I going actual guided So Anthony, in better results to bit terms expense, of we're of minority interest, we're are initially minority to areas million have a little because we and guiding million we and partners. now between think where $XXX the think $XXX $XXX we

previously, of to there. we EBITDA, the But it quarter, I we from of we first goes where year, terms -- based trending where it's see in In I than and think the in it's we disclose higher were. saw what off but early don't it didn't want

Operator

Our next line question the George America. of Staphos comes of from Bank of

George Staphos

much color, you more little start like it's key could activity markets? terms write of of had hasn't a And couple in in think I anything sound as as year have give bit had follow-ons. Kevin, promotional been a a then beverage more a stronger really Tim, bit surge bad, your the of that why bit a doesn't to hasn't home yet? a but been cans you And color to been

Timothy Donahue

post shipments. Asia Asia, But the income in it is number would I'll have me in than think Western be start the with North a really America. Asia disposable not economies Obviously, in much economies let struggled. and pandemic the in talk about or in So I Europe our market George, different Asia,

companies confidence the back beer you've market think the the up you promotional growth for are the consumer the point bit I naturally, relatively in they we to Certainly, the a More talk a think I environment shipment North -- certainly do beverage bit last But And change more in quarter. and where the moving beer the are doing market market understand and do people America. year are hard ladder. I was weak Asian principally Asian in the with got we're your I Europe, and in can Europe. again. to more be in and from our economic destocking in growing -- little more customers. less see I more were that's consumers activity So certainty going Like Europe because fear there's, in great agree patterns the they're bit fourth so in think again, think still why when comment a in market. to the Asia, are weaker the about a is than

destocking towards sit great we all healthy and here think as a but little effect the signs of that bit -- a -- was today. I have pretty but So so summer to have a beginning And obviously, the we restocking where weeks the European as of in mid-June, X you or to know, we're middle row in the Cup going go August. we Olympics X from a into right right point

excitement marketplace both zone. in of So I think events, around going to in are two European there's be a large fair in amount which the of held Europe time the same

continue year. next. up And to said past over -- think, last quarter the a Brazil flat, Brazil the again, imports at get and we've a know, And is time. you as about look was the always line we Brazil forward. North which down, heard I from in just don't I we concerned back X- expect us let and fluctuates like said, in market goes units the to you one period, see that you've including up as and if up, longer-term you, versus destocking always going any going market you say the I It down billion the were to year-on-year. reflective America, We any me George, think about had second, take up view. X-year Brazil X.X imports, to too to time measuring we as that

very anymore. large not are imports the So

the Excluding market X%. X% imports, maybe the or was the market But was including up imports, flat.

the obviously, a the we in weeks we've level European of at not even in X. out, than be to the so you the we we July European -- I ahead we'd promotions market. X, seen what level view have lower level promotions in over So it as the and after historically perhaps that see of certainly think here what rightly Olympics event, next as described -- and then a Cup couple see. get that, don't But to of I as Cup. point so the And Day. And not like would as interested July Olympics, a that a a drinking have And is than Memorial we'll lower Americans although how sign of a are huge look not positive then we'll you reflection turn the

what see market we'll the So brings.

as Ghansham's as from North to But said, in market X% reference think Crown. the exceptionally America question for projection X% earlier, I in I to confident I in think X%. I said we're to X% our

George Staphos

regions whatever be expect much of certain CapEx turn the than start I the over. it problem CapEx? high-class guess you markets? to to one, spend you higher? And $XXX volume a And the next identify mentioned it's question above that where trending level you really them I if and the be more more start then that if that that And growth growth would are a you 'XX. maybe have What have I'll you is million that certain And any there as X CapEx there has next years, overall spending where level, underpins 'XX my just you that? no it number maybe last bubbling quickie. start Are in thresholds key to would have could where is,

volume I'm that Asia Pac, I'm really you It's market capacity up I doing ex-China up your of -- huge what The outlook that a there. you're suggests square took correctly, not rest XX%, is significantly. that trying were to think ex-Crown your said if down, the was And down the market you XX%, X%. Southeast -- lot. market, a you just I if saying was interpret Asia with

you're what biggest Small of market... market, understand saying. you kind I'm the If the

Timothy Donahue

-- keep think right? the It's we X variety I but X% -- perhaps we best participant obviously, XX% it's have maybe in that we're by mind, the think Southeast say, Southeast out, We number the which best in of of make still just we about lost last for here knew every not or the XX%. make estimate. XX% cans. little to still Asian X%, Asia -- capacity -- George, and we've Crown some share, when the almost discussed we're -- X the to again, need shareholders. talked money do our in countries, but a we That's largest would took countries. And of market. Maybe market. And it's would imply, as what far in to estimate market years, it's wrong, as the of So you of with we we couple so that is our we've we repeatedly that the excess And that's over a

we was So did trying and grew. does are imply right. the focused so return on necessary. appropriate are -- some to levels But others you we pruning really margin It that

it's not in said, I et cetera. growth the science Malaysia, versus As Indonesia estimating versus Thailand a perfect

So memory because What is the my first awful. was question?

George Staphos

question X... than was, more First [indiscernible]

Timothy Donahue

the So years and but years, what regardless want I to we And X combine $XXX do X the we more not we sit 'XX, no at million it's and feel that $X like comfortable $XXX very in wanted say think 'XX for no $XXX than the us, over today you million. million in to as with billion, year of here other. than comes if more and

tried Europe, we've a so be mid-XXs. And more more but changes, these money, historical towards without Asia the whatever of to we well now. going in add yes, not we get very I welcome a can have unless of most or measured I have beverage a historical have that measured that highly to be bit capacity we're going substrates North if the in We're growth are Brazil reason, much So markets even we seen opportunity. much utilized in over years. I years all think if bigger America, I next handle one growth we're as government several for markets we a right think get do then anymore, somewhere something we capacity, we're last certainly do think having dramatic X George, that cans. in the to positioned and and over competing and the be, think but the as we've aluminum to to little in double spend open to in in we if move the get -- many we we world, some outlaws

Operator

of Phil next comes from Jefferies. line Ng Our question of the

Philip Ng

I XQ Congrats year pretty to the question consensus. a still solid start to my little XQ, guess a and ahead first solid backdrop. is guidance, a of choppy

us about guys rated thinking how or full conservative back very guide, just the just here? on half you being in less You little a early the year. in But some cadence? year give certainly Are thoughts the of confident kind you're

Timothy Donahue

we Well, huge given very as the we as we've in I think early guidance. good any in year had you. guidance fourth effect had -- year last We to well. bit sit here Europe confident a change we're quarter. to we're today, very start destocking A the And in the then a

change. Just perhaps too to early

say say want I I So as you overly to know the certainly -- talk don't want it's we're year, to to say don't in to think early July. we'll I don't more want And confident. just not and conservative. in we're we're confident. we I being

Philip Ng

like Asia is Okay. is America. And promotion then, your you? better I North a still helpful. mean what to even sounds off start, but are it in like little Europe telling customers a That's in like they're the But year the today at say, you customers planning of point well. your telling about few this ago? what as they're months terms year a and versus, are let's thinking how Tim, how

Timothy Donahue

their don't It's they're I value up benefits And prepared mean you for volume more over the of the take. I you ship, greater -- the anything incredible to obviously, risk give them. yielding volume think strategy.

same the by So more to I make listen, money If them, they're strategy. their I less was taking risk. thing. I able And do understand

think point, share I is than versus it's think restocking. of concerned perhaps about share, goes may market share they see competition I about with first. But concerned people should. that bottlers and Europe, more as they their more or promotion, pressure And get pressure they and in the who may they deal look think their get the just at way we'll get I from sometimes So they some their at

largely market Brazil, it's do do and -- as restocking more growth, one transition well, think more to it's to with healthy away of Asia, returning the way from to a Mexico in like returning the largely we I with consumer. North in or returnable in cans the came beverage of can I back America, value glass to term, they the proposition they the And think after have. aluminum to out near pandemic. as

progresses. see how year we'll So the

Philip Ng

Okay. And then a mean, little comments guess was on us, at I was in your I line transit, expectations, it for your least with fairly softer.

I think we're that. expecting costs yours. that perhaps kind of flattish it's first offset half lot forecast, was earnings my maybe would view a once again, not Tim, The of

to better? with getting actions? Or about up the demand just progressing little So in How progression kind XQ? thinking relative incremental that the demand do a you are of on side? you're cost about how the of help perhaps did trucking you earnings be expect us to transit And back think business, things incremental kind see this So on weakness in half year. of

Timothy Donahue

Yes.

costs that initiated think XXXX the most I out the last described we to was of from we in program So you year.

there's do the time you incremental environment costs, come price markets, environment. did it. lower market's year. last we cost have So our lower a volume of was year. volume The And we out a obviously to The reduce but well digesting things last most into any does always

we're performed the surprised you in year think I a be to look quarter price how this back first and year, trucking versus So that firms if wouldn't some also take go slightly to at were But we're last of the you volume. down. measuring compared large constantly

some Some numbers. of very numbers the down trucking are large

a we So QX I in little a may be QX performance think flatter. expect as similar QX.

we so And QX. hoping for a back are bounce in

are there's earlier the how we QX you, in of one if got lot fairly to recovery being in a are each confident takes. just than it is your we're Maybe in but the conservative? guidance another? conservative provided question, year we we for business, transit. that being progresses confident, we're And a hoping businesses. the around think the and more -- puts one So business. overall business the could we in move And But I in Kevin by where of But see context,

Operator

Our next question of of Barclays. Mike the Leithead from comes line

Michael Leithead

changed a like equipment those last glass, full First perform today? guess, I this there Mexico how expectations? quarter, year talk all here aerosol, sit as expectations XQ for areas those was in question, there businesses are at areas I we did earlier about And relative year. obviously think has can-making headwinds to your lot of areas and your

Timothy Donahue

float. that year, would somebody we XX% money in margin EBITDA low saw still as So is teens, glass wrote something business, and were of the glass, last year Beverage previously XX% Mexican exceptionally losing clarify customers the I high return high to business well Mexico have more EBITDA Last think that thing. which Americas one just year. we performed returnable makes levels glass The business And not described I true. inside I some to to want margin. business, this historical you made it the rebuilt would the

softer new new But be still aerosol million America, as service as as the more America to North think beverage to previously, weaker just the was down a cans, Having what for shipments. And to you profitable think that we business cans equipment strong. have a I again, the were So very it cans still levels. aerosol than than being profitable American $XX with equipment at other I -- expected that we as line point would we a April we opposed of order company tell in that, this profitable, shipment, you, we're North business. normal can expected. would on we're then little described, and North The just segment, said quarter, equipment I only as Bevcan And the then million told tools we down $XX in principally But year-over-year in the million. in first describe and was food to order doing shipments not we used million business food to of we expected. little $XX back business. And but in as $XX healthy, very as you,

were they were or of know So plans in delayed we nicely or and up marketing in that customers QX they couple April. QX were have but -- early delayed, a if I don't picked their

estimates and I other year, we glass budget earlier right was, the the think of if target we'll not we to on overall, estimate the the few in a for line certainly, end millions. with businesses, those earlier be get businesses, gave think you where the we're by the Mexico of within the time I

So...

Michael Leithead

lingering Great. just XQ That's clarification. impact helpful. here? The Or contained is a any we into the was facility that super fire to there quarter? first And quick impact as continue

Kevin Clothier

quarter. contained first in that's the Mike,

Operator

comes Samuelson from the of of Goldman line next Sachs. Our question Adam

Adam Samuelson

following up the earlier Maybe some on question. of

first trying but Just first full think year drive be to either about trying based the you've implies half of less uplift. the half, the $X.XX of about decent second I'm can the transit, seem would the the to just which given are pretty on mover items appreciate the seem half versus magnitude. a that be And that that company's common. don't -- that And is the the quarter, bloodline the of half guidance history first it recent EPS a think based you've given second wouldn't in big quarter the step-up full and the lot it to to way. in part stronger to framing, on notably explain the second that businesses be I going versus a a

for of help you're you what can strength the EPS first just So little at implied year the level in the bit the on implying half? second me the versus half a

Timothy Donahue

I mover year in year the second think half half be this second would Europe. versus the last -- the big

Adam Samuelson

up business Well, seasonality but second clearly? half, a half I historically that half half of appreciate Europe doesn't versus wise, first be and your bunch, seasonality versus I'm have kind year-over-year, will thinking

Timothy Donahue

always bigger than bigger third quarter the quarter traditionally, the first. mean second. the fourth Well, the is is than And always I

and happened so I had at looking back anticipate And we don't quarter, going prior last year. in the do huge fourth and without Europe like years, we that in year specifically what remember this in destocking a

this in the a fourth to around up last weak Europe was what versus second be we principally So very of believe, year, a a there's quarter last large half the going of in step year. -- year second half

Adam Samuelson

Yes.

maybe customers then better the the I the following Is that of transit up and second on that year. take orders appreciate you that I'll is latter mean thinking some that the confidence environment Or And of year? I X? that the is in book-to-bill the your and part talking about in better on point. gives Okay. What just improvement offline. of demand transit? freight a just on now are market year-over-year based half in the the above freight

Timothy Donahue

if steel -- by down up Equipment -- the protective offset businesses as the at businesses little. service a I intermodal little, strap but down. performance, over-the-road quarter we which largely and down strap slightly service, the first a plastic I look tools was trucking Well,

talking at quarter the I they're in being the think the and if contracted firms the fourth about look commentary right fully from are all talking than quarter, you trucking about they strong are or fourth heavily trucking very firms, more now. contracted

pause for would So us give here tooling of to see businesses. gives us that equipment as don't little products that or bit protective as sit our any on today. concern sign a confidence We relates we it anything the

Operator

from of question the Wells Gabe of next Hajde Fargo Our comes Securities. line

Gabe Hajde

question you to at going I'm for high-level to Bevcan the a in a Tim, business. take try stab

During the some the obviously, pandemic, is it obviously, facility and product rationalization. on Post-pandemic, shelf getting customers. there's been about your servicing

up? one obviously another about what a guys we've of you for. 'XX? we have go-forward there's do guys won that talked utilized you an that players for were you with Brazil are planning in But then And about. really player in loss and North thinking And around Europe, in question bigger what just global if be Can us that expectations Got bigger a just thinking the kind America, you customers. your it from landscape, 'XX? move being a for Pacific. I bit than announcement are are? I'm and again, of have kind curious, my that contracts renew in of maybe and people your suppliers. I'm basis, You Asia mid-XXs little remind a of on choosing here historically was mean different come Is XXXX there that about Or something should bigger North they America. couple renews competitive speaking, of had is just mindful anything customers

Timothy Donahue

greater as 'XX. perhaps same tell are confident say earlier, in I question, being said about than we the America, North Ghansham's So to no we very share would sit less I 'XX as I'd our you And probably that, where today.

contracts, or we a about in that we're we coverage is exception going and around Asia minus moves have Brazil stronger. business to So of market. market. more so good margin And concerned year, without on always commenting with Brazil think customer get that say it do the quality a Asia, of is Asia plus we're But service is way. There's I'll the and don't a in on few overly -- customers, annual locations I Brazil. in healthy the big an good high market.

markets poor And to couple recovering to might really as recovering what against years but from locations looks glass over relative now. the of a bit fairly as inflecting it have last most like Brazil little of a We we customers. -- last seem be be was the the little was good year glass

I'm So -- next I'm anything in my top not for of aware concern head, then the any me gives year. off Europe, great and that not of

there's it's It's can Gabe, for competition. a -- the there's like always other business tell we're and competition, you. I any prepared So all business,

Gabe Hajde

customers' about you value looks do said of mean, over like it I that would. to volume, elected talked you as you some guys your Look, have you and

to laws I was does favor trying think around context think tend that into mandatory disruption? deposit again, what question that's the time? it 'XX So I completely just Any that? different bit. in a and Germany back about I little Or we're but going I in for in the over can know to U.K. expectation I pattern, -- on think, A effect, saw dial --

Timothy Donahue

are mandatory think I on included deposit laws. depending in which Well, the substrates

can So we other we're ensure and can go the where working pick the not don't by high rates. either to that industry, have recycling laws that which or picked aluminum high they subsidize and don't to substrates all other they already materials, and new to in across any which others challenged the a into don't high have place can unfavorably rates the effort has an recycling pick intention they recycling rates get really or

laws, normal -- absorb where aware there's consumers within market initially, of of the deposit softness the you it. with bit years. and absorbs when little in the So it a the we're of a get it to market returns couple Generally,

are variety an think law of higher generally I organization. industry carbon think the one think So material changes. a we in of favorably we're recycled and when we the of recycled changes mindful them. of as said substrate we lot Europe content. use as levels And across these now European are an of I I if aluminum opposed deposits, that, we about But compare having as as A any as favor can, sustainability these for would think using had as be beverage we on good other to

So in provide package the in from where of sustainability environment. terms the we sit, we we're in confident very

I somebody think it consumer global you've heard And back now target. reduction has least with, their large think seen pragmatism. don't one do call products anything large that plastics at part, step to company I very in as I

recycled for do place. with aluminum. be economics it to not work was nor I they think as for the infrastructure do it do levels to The in there the recycled plastics at is recycled great for plastics has first achievable never

of for So other the recycled can We think recycling, and all can, not it or unfairly to economically? product in ensure pays not more we're more favor recycled. need recycled products, doesn't the in I that give to are the whereby be which general, just deposits us punish

Gabe Hajde

can I it Agree. value there. chain, aluminum three point questions. and for looks you across sort the clarification, of guys Based research, are our last One coordinating of doing apologize like good the is on work

Asia closing X lines. Pacific

lines? that $X those maybe Can you million is $X like it's the fact that confirm -- to million are that? those on quarter. from And Just looks installing curtailments a or in are then savings

Timothy Donahue

$X what's quarter? sorry, I'm to million a $X million

Kevin Clothier

Savings...

Timothy Donahue

Yes, Yes. $X use if to $X million to million a that's want fine. quarter, you

it's and new really a we was plant small new is running, in built used in that And -- high-cost wanted a The and the a in plant a in one-line government in-line. the plant region think until a new plant entered exports the land location. We lease can not efficient. the and that plant up had We where The a we markets XX-year closed land with the is I had built very market, Singapore for Singapore, was plants one-line back. lease. market as had very or was XXXX. a but which an market plant Saigon we

land to the had operations, So at we're the the the back to process in and end handing the we now government. of terminate 'XX, of

X had to and on combination lines a the companies And I lines chose think another same two area, probably in we not that -- reinstall So based can which And also site. on markets we currently. are, that then we we on together purchased is put those Saigon we're plant where that the the X or offering of site.

make slower So out we took the more and efficient. of plant modernize speed the to two just lines

So...

Operator

from question Markets. of Viswanathan Arun next our Capital RBC have We

Arun Viswanathan

here. the on results Congrats strong

So America. guess growth first my is just in North I Bevcan around question

especially quarter, think to year, I of America, ability for this -- you volumes, the and about think that X% X% X% you How I were comp. You the the comment think. think do you to X% do we the think was range 'XX. look you maybe into pretty up you now off get of longer-term as North a tough What have into do in X% beverage to can made

Just wanted your on get of longer-term thoughts growth. to medium to kind Bevcan

Timothy Donahue

let So apologize. just me Arun, I --

back were in take just and in me Let quarter. the America a just first North up clarify. We step X%

so off clear. a flat QX, Our is to We estimate X% the year for our market to in range coming full X% X% year as in the said we're just the performance for growth X%.

possible. anything think I is that

get nothing bit takes little we'll us. lose there's X% they level that And don't if where share. return to that X% with we and X%, want X% growth get X% no the right? be off share coming describing going to value wrong get share, that, That this over larger with a and It's base a a to about some to start market you so to if the billion XX we or X% higher they of billion think companies coming promotions to XXX of range. of a I units. could is -- longer concerned to we're to X% X% off billion If see we perhaps promoting to gain now they -- range of X% want stay to to sure, the we're described. But XXX to they're X% X% base that X%, units. volume, in going Then

the I what units two units. full tell you X can can you math. billion, So lines. It's on billion do X.X is billion would XXX It's

year as plant industry know you're that in need you've long new So the from industry around a in to would every time, the -- you season. well oversold we're aware the up. And it a is well been put that somebody

them more need we so we cans either need to make balance. early or capacity and warehouse So run to we more that have can

know the even a level, be years, running for in do been XX incumbent X% to very uptick XX accustomed think and we've had across at 'XX, I to us do years shareholders. industry for over last business the especially we that where before to became all responsible our we to we the So all it's that, down a upon all flat how

Arun Viswanathan

question leverage interest expense. another Great. I and I just guess around And then had

are longer-term EBITDA I down into I'm it growth on you the just just idea nice see Xs make growth leverage your maybe to just of us translate pivoting in and maybe lines, expense target? your curious if your to is as along can bring those what that buybacks sense interest comfortable so mean, give those can your will well. some And the to thoughts then be XXXX, EPS of with issues. So lower would you much you just

Timothy Donahue

the us where competitors else in their may for where To how you inflation range. the low bonds get goal too to they have I to leverage well still haven't confident treasury going down. an going end in government buy about regardless we're one, that of described right they rates such the they've economic this inflation, more the who's to to they're goal, long-term point, and could anybody our rate or the that need tell We're historical we well would we you and as some pretty think, point, competitor perhaps their to your down. right two environment bad of stated now. Then right, in inflation economy got low their at at it beverage -- somebody bring inflation be more the view world And sense have the we is in know. makes levels believe year, they're whether higher to does be paid which inflation getting target that be to that bring be options. in know, tell by At to you're this year. understand for if us leverage on sell they They of the is So believes end there's need Xs. environment high target -- if -- you're going not would again, see We'll think everybody bonds. lower U.S. not the has may long-term aware can if more it around of which we're I do our another at by least range. they it's inflation be and prudent we a wants and right don't space probably going the I in thinks We're now, that mid-Xs the changed right? end

topic And And we so we're question Board talk about mindful good of at with that. every Board meeting. It's though. the a

Arun Viswanathan

preference 'XX? buybacks? Would a in that be about What

Timothy Donahue

down think being all can cash achieve both. cash equal. debt, We're else flow, more I pay going Well, you generate you flow. as to Certainly, significant we have

listen, cash It's board use to to all capital want use discussion we we'll to available pay not? want is uses with the want they they at buy the the everything the so want to stock? some of to dividend is? to And capital do Do every the have they roughly to But I use are or company. back a Do meeting. dividend debt? down keep of increase they what Do where yes, review Board mean, and it

lot a have We of cash flow.

believes an environment, we're we Board environment the So Board the kind to on what thing most entering. think in we'll of do see what what the thinks, prudent is depending

Operator

of question comes of line Securities. Michael next Truist Roxland Our from the

Niccolo Piccini

Piccini This is Roxland. Mike on for Nico

on various maybe you understand Mexican on -- And asset to glass. Or core? historical an profitability to in-house? renewal those how your Just a there. and that for JVs that look you consider will a that divest the bring the and up then larger could follow-up impacted? Asia, could customer that? East, in I also But things come and it Is and be or South Middle are tied Should that acquired entirely it's contract maybe would unwind America you why and contract. being was relatedly, profitability

Timothy Donahue

can tell the the Mexican Crown. along core we from to assets, the I that assets purchased customer would that with customer Mexican Well, is the you glass

about So customer the we've relationship, conditions business business as the have a you very that. But separate under yes glass about or the in from this don't today, and in think about business we can right glass the an we no told we in as core Mexico, business any before, that the think we global a and Mexican as think customer the global at again, business, a service with to portfolio. view as leave terms And the company. I'll considered we be customer. would But which here we excellent sit beverage relationship we

the company have that the we served I joint well. around ventures think world the have

partner happy the Middle way, of for I participate it South a also ventures grow interest. And a those would we difficult in in contemplating to their don't quite Asia, partner. In invested wanting who's have, the the East very business. America, any fillers. sell to think venture and part, in business and have We without who the some be markets, partners be most are in they're with to

place partnership continue agreement So XX and we've such. in that relationship to and for it's we years, a as had a operate

Niccolo Piccini

Understood.

Apologies earlier Just call, segment? you follow-up. on can cover it the the but utilization if by missed one I rates

Timothy Donahue

By segment?

Niccolo Piccini

geography... By

Timothy Donahue

you think other not so the utilized for beverage because we're lines other do But markets business America, mid-XXs. I'll North -- important. the I

the low low I well pretty mid-XXs, XXs, Europe to Brazil to Asia, Europe and utilized we're say, would with reduction, I -- think Brazil, mid-XXs. Asia. capacity there in is Mexico the that. high in XXs, something going in were, again, market in in a which and like -- be again, like the is

Operator

Mizuho have Securities. our Rodriguez of from Edlain We last question

Edlain Rodriguez

for much or mean much a a love which talked I like and you quick that opportunities about you've space? analysts, question business, in investors more Tim, transit still doesn't got had I margins, require is you that, this question would is, low the you on bigger get from be businesses wish good The how interested? to past, doesn't mid-teens bigger very get like can capital. stable, in get like there, you Or you other

Timothy Donahue

to would We not world are. strategy to the take look we we I'm principle, that that of beverage businesses. as XXXX, be or to on matter -- would There grow you to can a and more other had shareholders going we the all the our told back less late that or that growth a the of strategy delivered world businesses around focused

So don't assure gives because let's spend always any to argument. you again, capital you it's I But me, business I want no like a said, I But just me, love think any And of give I you my the I'm you don't give transit us have I for I like nobody and use money. don't capital. summarized sound be them clear, them business for just either where people for just a that summarized love business. defensive. can in

business money. which we would EBITDA There better either same business the we or there's think trade opportunities in growth to the from margins acquired So still or But the numerous more said more business, are the always to transit directly there old adjacent. for in numerous you better acquisitions. less of be you that I range. And a that spend an are those businesses. if as XX% could in businesses buy when And businesses, better are to XX% we want make in operates acquire that multiple, bolt-on saying,

now is the see investor back So opposed business. sense that growing debt pay our not right opposed as buy shares to the grow base -- us but and that to down the prefer would our to we're business,

delever. that us to use harvest we not business but So a invest in pay buy allows dividend, and to cash back stock only that beverage,

point. So but that the base from don't opportunities the investor to as see this there it, are grow mandate we at

Edlain Rodriguez

strategy. right I much. Thank think you a very that's

Timothy Donahue

question, welcome. Ell, say you the Ell? last did You are was that

Operator

you're sir. Yes, right,

Timothy Donahue

thank That in again speak concludes Bye Well, joining, today's call, thank and you you much. very we now. months. and we'll for to you all X

Operator

concludes That for everyone, conference. Thank you, today's joining.

and have disconnect, great a may You now day.

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