Crown Holdings (CCK) Tops Q1 EPS by 19c, Offers Guidance, to Sell Transit Packaging's Kiwiplan Business

Crown Holdings (NYSE: CCK) reported Q1 EPS of $2.01, $0.19 better than the analyst estimate of $1.82. Revenue for the quarter came in at $3.16 billion versus the consensus estimate of $2.93 billion.

• Additionally, the Company has entered into a definitive agreement to sell the Transit Packaging segment's Kiwiplan business and will receive pre-tax proceeds of approximately $182 million from the transaction. Kiwiplan provides manufacturing execution systems, logistics planning, and analytical software for corrugated packaging manufacturing operations. Kiwiplan, headquartered in Cincinnati, Ohio with software development centered in Auckland, New Zealand, generated $39 million and $10 million in revenue and EBITDA, respectively, in 2021. With all regulatory approvals now received, the sale of Kiwiplan is expected to close during the second quarter of 2022, and is subject to customary closing conditions. The Company expects to record an after tax gain of approximately $100 million related to the transaction with net proceeds, after taxes and other transaction related costs, expected to be used to further reduce debt, fund capital projects and repurchase shares over time.

GUIDANCE:

Crown Holdings sees Q2 2022 EPS of $2.00-$2.10, versus the consensus of $2.06.

Crown Holdings sees FY2022 EPS of $8.00-$8.20, versus the consensus of $8.14.

For earnings history and earnings-related data on Crown Holdings (CCK) click here.

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