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Crown Holdings (CCK) to Build New Beverage Can Plant in U.K.
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Crown Holdings, Inc. (CCK - Free Report) declared that it intends to build a new beverage can plant in Peterborough, the U.K. to meet customers’ increasing preference for sustainable and recyclable beverage packaging options.
Beverage cans help increase the shelf life and maintain the quality of the food. These are the world's most sustainable and recycled beverage packaging options. Increasing awareness about the environment has encouraged customers to opt for cans over plastic. Changing lifestyle choices, population growth and increasing disposable income have also led to a shift in preference.
In the U.K, a large proportion of new beverage products are being introduced in cans compared with other packaging formats. Thus, the new facility supports Crown Holdings’ focus on expanding customer requirements in the country. Construction of the new plant will commence during second-quarter 2022, with the first production line expected to come online during second-quarter 2023. Additional lines are planned in a phased manner that are expected to reach over three billion units of annual can capacity.
Crown Holdings is focused on growing its global beverage can business to tap strong demand growth. An estimated 75% of new beverage product launches are now in cans. The company continues to implement several can expansion projects. These projects include the construction of new plants and the addition of production lines to existing facilities. Approximately 20 billion units of beverage cans capacity have already been commercialized between 2020 through the end of 2022. Markets like North America, Europe and Mexico are experiencing higher volumes and market expansion.
In 2021, the company commercialized significant beverage can capacity at new plants in Bowling Green, KY, and Vung Tau, Vietnam. CCK also added new production lines to its existing facilities in Olympia, WA, Rio Verde, Brazil and Hanoi, Vietnam. These capacity-expansions projects will provide additional growth in the long term. Even though the company’s Bowling Green, KY facility sustained significant tornado damage in December, it expects the plant will resume operations later part in the first-quarter of 2022. During 2022, Crown Holdings expects to commercialize new production capacity at new plants in Martinsville, Virginia and Uberaba, Brazil, coupled with can line additions to plants in Phnom Penh, Cambodia and Monterrey, Mexico. The global beverage can businesses segment income is likely to improve in the current year, owing to an increase in can volume, contractual pass-through of inflation and efficient operating performance.
Last month, Crown Holdings released impressive fourth-quarter 2021 results. The bottom and the top line surpassed the Zacks Consensus Estimates and increased year over year. For the current year, the company anticipates adjusted earnings per share (EPS) in the range of $8.00-$8.20. In 2021, the company reported an adjusted EPS of $7.66. EBITDA is expected to grow more than 12% to approximately $2 billion.
Price Performance
Crown Holdings’ shares have appreciated 27.7% over the past year compared with the industry’s growth of 8.6%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
Crown Holdings currently carries a Zacks Rank #3 (Hold).
Applied Industrial Technologies reported adjusted EPS of $1.46 in second-quarter fiscal 2022 (ended Dec 31, 2021), up 49% year on year and beating the Zacks Consensus Estimate of $1.09. AIT has a trailing four-quarter earnings surprise of 27.9%, on average.
Applied Industrial Technologies has an expected earnings growth rate of 24.8% for fiscal 2022. The Zacks Consensus Estimate for fiscal year earnings has moved up 9.4% in the past 60 days. AIT’s shares have appreciated 9% in a year.
Sonoco’s fourth-quarter 2021 adjusted EPS increased 9.8% year over year to 90 cents, beating the Zacks Consensus Estimate of 89 cents. SON has a trailing four-quarter earnings surprise of 1.74%, on average.
Sonoco has an estimated earnings growth rate of around 30.9% for 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 18.3%.
Silgan Holdings’ fourth-quarter 2021 adjusted EPS increased 32% year over year to a record 79 cents, beating the Zacks Consensus Estimate of 73 cents. SLGN has a trailing four-quarter earnings surprise of 3.8%, on average.
Silgan has a projected earnings growth rate of 13.5% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 3% in the past 60 days. In a year, SLGN has moved up 1%.
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Crown Holdings (CCK) to Build New Beverage Can Plant in U.K.
Crown Holdings, Inc. (CCK - Free Report) declared that it intends to build a new beverage can plant in Peterborough, the U.K. to meet customers’ increasing preference for sustainable and recyclable beverage packaging options.
Beverage cans help increase the shelf life and maintain the quality of the food. These are the world's most sustainable and recycled beverage packaging options. Increasing awareness about the environment has encouraged customers to opt for cans over plastic. Changing lifestyle choices, population growth and increasing disposable income have also led to a shift in preference.
In the U.K, a large proportion of new beverage products are being introduced in cans compared with other packaging formats. Thus, the new facility supports Crown Holdings’ focus on expanding customer requirements in the country. Construction of the new plant will commence during second-quarter 2022, with the first production line expected to come online during second-quarter 2023. Additional lines are planned in a phased manner that are expected to reach over three billion units of annual can capacity.
Crown Holdings is focused on growing its global beverage can business to tap strong demand growth. An estimated 75% of new beverage product launches are now in cans. The company continues to implement several can expansion projects. These projects include the construction of new plants and the addition of production lines to existing facilities. Approximately 20 billion units of beverage cans capacity have already been commercialized between 2020 through the end of 2022. Markets like North America, Europe and Mexico are experiencing higher volumes and market expansion.
In 2021, the company commercialized significant beverage can capacity at new plants in Bowling Green, KY, and Vung Tau, Vietnam. CCK also added new production lines to its existing facilities in Olympia, WA, Rio Verde, Brazil and Hanoi, Vietnam. These capacity-expansions projects will provide additional growth in the long term. Even though the company’s Bowling Green, KY facility sustained significant tornado damage in December, it expects the plant will resume operations later part in the first-quarter of 2022. During 2022, Crown Holdings expects to commercialize new production capacity at new plants in Martinsville, Virginia and Uberaba, Brazil, coupled with can line additions to plants in Phnom Penh, Cambodia and Monterrey, Mexico. The global beverage can businesses segment income is likely to improve in the current year, owing to an increase in can volume, contractual pass-through of inflation and efficient operating performance.
Last month, Crown Holdings released impressive fourth-quarter 2021 results. The bottom and the top line surpassed the Zacks Consensus Estimates and increased year over year. For the current year, the company anticipates adjusted earnings per share (EPS) in the range of $8.00-$8.20. In 2021, the company reported an adjusted EPS of $7.66. EBITDA is expected to grow more than 12% to approximately $2 billion.
Price Performance
Crown Holdings’ shares have appreciated 27.7% over the past year compared with the industry’s growth of 8.6%.
Image Source: Zacks Investment Research
Zacks Rank and Stocks to Consider
Crown Holdings currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include Applied Industrial Technologies, Inc. (AIT - Free Report) , Sonoco Products Company (SON - Free Report) and Silgan Holdings Inc. (SLGN - Free Report) . While AIT sports a Zacks Rank #1 (Strong Buy), SON and SLGN carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Industrial Technologies reported adjusted EPS of $1.46 in second-quarter fiscal 2022 (ended Dec 31, 2021), up 49% year on year and beating the Zacks Consensus Estimate of $1.09. AIT has a trailing four-quarter earnings surprise of 27.9%, on average.
Applied Industrial Technologies has an expected earnings growth rate of 24.8% for fiscal 2022. The Zacks Consensus Estimate for fiscal year earnings has moved up 9.4% in the past 60 days. AIT’s shares have appreciated 9% in a year.
Sonoco’s fourth-quarter 2021 adjusted EPS increased 9.8% year over year to 90 cents, beating the Zacks Consensus Estimate of 89 cents. SON has a trailing four-quarter earnings surprise of 1.74%, on average.
Sonoco has an estimated earnings growth rate of around 30.9% for 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 18.3%.
Silgan Holdings’ fourth-quarter 2021 adjusted EPS increased 32% year over year to a record 79 cents, beating the Zacks Consensus Estimate of 73 cents. SLGN has a trailing four-quarter earnings surprise of 3.8%, on average.
Silgan has a projected earnings growth rate of 13.5% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 3% in the past 60 days. In a year, SLGN has moved up 1%.