US-based rigid packaging products supplier Crown Holdings has reported a net income of $187m for the second quarter (Q2) of financial year 2023 (FY23).

This represents a decline of 43.2% from $392m for the same period in FY22.

The company’s net sales for this quarter, which ended on 30 June 2023, were $3.10bn versus net sales of $3.51bn in Q2 FY22.

The company witnessed favourable foreign currency change of $11m and higher beverage can volumes in its Americas Beverage segment.

However, the growth in the Americas Beverage segment was offset by the pass-through of approximately $288m in lower volumes and lower material costs recorded across the company’s other business segments.

The income from operations for this year’s Q2 totalled $367m while the same was $466m a year ago.

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Crown’s interest expense this quarter was $110m, compared with $64m in Q2 FY22, signifying that the company has higher outstanding debt and higher interest rates.

The diluted and adjusted diluted earnings per share in Q2 FY23 were $1.31 and $1.68, respectively.

Crown’s chair, president, and CEO Timothy Donahue said: “The company performed well during the second quarter, as strong results in European Beverage and Transit Packaging offset softer than expected beverage can volumes in Asia and sluggish aerosol can demand in North America.”

The company’s net sales for the first half (H1) or six months of FY23 has also declined from $6.67bn in FY22 to $6.08bn in FY23.

The net income for the reported H1 was $259m while income from operations during H1 FY23 stood at $636m, against $810m in H1 FY22.

Donahue added: “As we near completion in late 2023 of the multiyear programme to profitably expand global beverage can production capacity to support expanded customer requirements, the company expects capital expenditures to be significantly reduced in 2024 and 2025 from this year’s $900m to approximately $500m and we plan to use increased cash flow to pay down debt and return capital to shareholders.”