Crown Holdings(US:CCK)2025-05-02 19:28Financial Performance - Net sales for the three months ended March 31, 2025, increased to $2,887 million, up from $2,784 million in 2024, primarily due to higher beverage can volumes and the pass-through of higher material costs[130]. - The Americas Beverage segment reported net sales of $1,320 million for Q1 2025, a 8% increase from $1,222 million in Q1 2024, with segment income rising to $236 million from $189 million[133]. - The European Beverage segment achieved net sales of $512 million in Q1 2025, up 6% from $482 million in Q1 2024, with segment income increasing to $67 million from $51 million[137]. - The Asia Pacific segment maintained net sales of $279 million for both Q1 2025 and Q1 2024, with segment income rising to $47 million from $42 million due to improved manufacturing performance[142]. - The Transit Packaging segment's net sales decreased to $482 million in Q1 2025 from $520 million in Q1 2024, with segment income falling to $60 million from $68 million[147]. - Other segment net sales increased to $294 million in Q1 2025, up from $281 million in Q1 2024, with segment income rising significantly to $29 million from $8 million[150]. Cash Flow and Liquidity - Cash from operating activities improved from an outflow of $102 million in Q1 2024 to an inflow of $14 million in Q1 2025, driven by higher income from operations[160]. - Cash from financing activities decreased from an inflow of $9 million for the three months ended March 31, 2024, to an outflow of $153 million for the three months ended March 31, 2025, primarily due to $203 million of common stock repurchases[166]. - The Company utilizes cash flows from operations, borrowings under revolving credit facilities, and acceleration of cash receipts under receivables securitization and factoring programs to fund operations and capital expenditures[172]. - The Company expects to have sufficient liquidity to refinance or repay its senior notes at maturity[173]. Capital Expenditures and Commitments - The Company expects capital expenditures to be approximately $450 million in 2025, reflecting ongoing investments to meet market demand[163]. - The Company had approximately $84 million of capital commitments primarily related to Americas Beverage and European Beverage, expected to be funded through cash flows from operations[174]. Tax and Income - The effective income tax rate decreased to 16.9% for Q1 2025 from 29.9% in Q1 2024, primarily due to an income tax benefit of $22 million recorded in 2025[156]. - Net income attributable to noncontrolling interests increased from $26 million in Q1 2024 to $34 million in Q1 2025, mainly due to higher earnings in the beverage can operations in Brazil[158]. Debt and Financial Ratios - The Company's total net leverage ratio was 2.6 to 1.0 at March 31, 2025, in compliance with the covenant requiring a ratio no greater than 4.5 to 1.0[169]. - Long-term debt payments due in the next twelve months include $875 million of 4.75% senior notes and €500 million ($541 million) of 2.875% senior notes, both due in February 2026[173]. - The Company's revolving credit agreements provide a capacity of $1.65 billion, with available capacity of $1.62 billion as of March 31, 2025[167]. - A change of 0.25% in floating interest rates would change annual interest expense by approximately $8 million before tax, with $1.8 billion principal floating interest rate debt as of March 31, 2025[192]. - The Company's debt agreements contain covenants that limit the ability to incur additional debt, pay dividends, or repurchase capital stock, subject to certain exceptions[168].