News

Crown Holdings, the metal packaging specialist, has more than doubled its fourth-quarter net operating profits compared with last year, despite the impact of poor weather on its European can business.

The company yesterday (30 January) reported net operating profits of £173m ($343m) from continuing operations for the fourth quarter of the year ending 31 December 2007, an increase of 104% on the £84.7m reported for the previous year.

Net sales for the period increased by 11.6% to £943.4m compared with £845.1m in the fourth quarter of 2006.

Crown attributed the increase in sales to higher sales unit volumes, favourable foreign currency rates and passing on higher raw material costs.

The company increased interest expense by 13% to £43.4m in the fourth quarter, reflecting the impact of higher average short-term borrowing rates and foreign currency translation rates.

Chairman and chief executive John W Conway said that "significant beverage can growth initiatives in emerging markets" were on plan and continuing to deliver positive contributions.

"Looking ahead we expect the positive momentum to continue in 2008," he added.

In October, Crown announced its intentions to increase prices in its European food and closures division by an average of 5.5% from January 2008 across all markets.