Crown eyes demand recovery after profit increase

The Philadelphia-based firm, which generates almost three quarters of its net sales from overseas, said unfavourable foreign exchange rates had contributed to a 4% drop in net sales to $7.9bn (£4.9bn). Profit before tax rose by the same amount to $459m.

Boosted by a 10% profit increase in the final quarter of the year, chief executive John Conway said Crown believes 2010 will be a “solid year of improvement”.

“Demand in mature packaging markets of Europe and North America is expected to recover from 2009 levels and operating improvements and cost reductions are expected to continue. Emerging markets will also continue to grow,” he said.

European food and beverage segments recorded an increase in income over the course of the year, while speciality packaging remained constant despite falling sales across the board.

Last month, trade unions in the UK and US accused Crown of “aggressive behaviour” to its staff in a letter to Conway, which was the first public sign of a dispute with the company in recent months.

When contacted by Packaging News at the time, Crown’s head office declined to comment on the letter.

CROWN 2009 FULL-YEAR RESULTS

Net sales $7.9bn ($8.3bn in 2008)
Gross profit $1.19bn (1.2bn)
Income before taxes and equity earnings $459m ($442m)
Net income $450m ($330m)

Click here for today’s headlines from across the packaging industry

Popular Articles