Crown Holdings, Inc. has a market cap of $5.44 billion; its shares were traded at around $36.555 with a P/E ratio of 13.1 and P/S ratio of 0.6. Crown Holdings, Inc. had an annual average earning growth of 3.3% over the past 10 years.
Highlight of Business Operations:For the three months ended June 30, 2012 compared to 2011, cost of products sold (excluding depreciation and amortization) decreased from $1,865 to $1,799 primarily due to $86 from the impact of foreign currency translation partially offset by increased global beverage can sales unit volumes.
For the six months ended June 30, 2012 compared to 2011, cost of products sold (excluding depreciation and amortization) increased from $3,415 to $3,417 as the impact of increased global beverage can sales unit volumes and higher raw material costs was offset by foreign currency translation.
Cash used for operating activities decreased from $247 for the six months ended June 30, 2011 to $216 in 2012 primarily due to lower net working capital as days sales outstanding for working capital decreased from 44 for the three months ended June 30, 2011 to 42 in 2012.
Receivables increased from $948 at December 31, 2011 to $1,194 at June 30, 2012 and used cash of $347 for the six months ended June 30, 2011 compared to $296 in 2012. Sales in June 2012 were higher than in December 2011 as sales generally increase each month of the year until peaking in the third quarter. As a result, receivables generally increase through the third quarter of each year. Days sales outstanding for trade receivables decreased from 45 for three months ended June 30, 2011 to 42 in 2012.
As disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2011, the estimated fair value of the Company's European Aerosols reporting unit was 35% higher than its carrying value and the reporting unit had $145 of goodwill. In the fourth quarter of 2011, the Company initiated a restructuring action to improve profitability in its European Aerosols reporting unit by consolidating operations through reducing headcount and capacity. During the first six months of 2012, results of operations in the European Aerosols reporting unit were impacted by the economic downturn in Europe. Based on current projections, the Company continues to believe that the estimated fair value of its European Aerosols reporting unit exceeds its carrying value. However, if future operating results continue to decline or if the Company is unable to realize its anticipated savings from the restructuring action, the Company will perform step one of the impairment analysis to assess whether goodwill is potentially impaired. If the Company determines that goodwill is impaired, it is possible that an impairment charge of up to $145 could be recorded.
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