Crown Holdings (CCK), the manufacturer and seller of packaging products for consumer goods worldwide has announced a 41.46 percent plunge in profit for the quarter ended Mar. 31, 2014.

The company earned $24 million or $0.17 a share in the first-quarter, compared with $41 million or $0.28 a share a year ago.

Revenue during the first-quarter went up marginally 1.01 percent to $1,993 million from $1,973 million in the last year period.

Gross margin contracted by 25 basis points over the last year period to 14.90 percent.

John W Conway, chairman and chief executive officer, said, 'We started off the year well and on target and look forward to a promising 2014.  Global beverage can volumes were up 6%, which follows first quarter volume growth of 6% and 7% in 2013 and 2012, respectively.  The gains were driven primarily by strong shipments in Asia Pacific and Brazil.  In order to meet continuing market growth and an increasing consumer preference for beverage cans in Brazil, we will begin commercial production this month at our new plant in Teresina.  In the European Beverage segment, first quarter year-on-year shipments rose 5% in continental Europe and the United Kingdom.  Global food can shipments were 3% lower in the quarter compared to the first quarter of 2013.'

'Earlier this week, the European Commission formally approved our pending acquisition of Mivisa Envases, SAU.  We anticipate that the transaction will close on April 23, 2014.  The acquisition of Mivisa will significantly build upon our existing position in the strategically important European food can segment by substantially increasing our presence in Spain, one of Europe's leading agricultural economies.  We believe that adding this well-performing business to our broad network of food can operations in Europe will result in compelling benefits to both customers and shareholders.'

Cash flow

Crown Holdings has spent $495 million in cash to meet operating activities during the quarter, as against cash outgo of $432 million in the last year period.

The company has spent $73 million in cash to meet investing activities during the quarter, as against cash outgo of $52 million in the year period. It has made net capital expenditure of $84 million during the quarter, which was higher by 33.33 percent or $21 million from a year ago.

The company has generated cash of $147 million from financing activities during the quarter, down by 66.51 percent or $292 million, when compared with the last year period.

The company has borrowed net of $259 million through debt during the quarter. It has spent net of $2 million on common stock repurchases. The company's cash dividend payment decreased 187.50 percent or $15 million to $23 million.

As on Mar. 31, 2014, Crown Holdings's cash balance stood at $267 million, down 12.17 percent or $37 million from Mar. 31, 2013.

Working Capital

Crown Holdings witnessed reduction in the working capital. It stood at $518 million as at Mar. 31, 2014, down by $176 million or 25.36 percent from $694 million on Mar. 31, 2013. The company's current ratio decreased to 1.20 as at Mar. 31, 2014 from 1.30 on Mar. 31, 2013.

The company's cash conversion cycle (CCC) was almost stable at 120 days for first-quarter, when compared with the last year period. CCC is a liquidity metric which expresses the length of time (in days) that a company uses to sell inventory, collect receivables and pay its accounts payable. Decreasing or steady CCCs are good for business.

Days' sales outstanding were almost flat at 51 days for first-quarter, when compared with the last year period.

Days' inventory outstanding was almost flat at 69 days for first-quarter, when compared with the last year period. This suggests the company took less time to convert the inventory into sales.

Debt Position

As at Mar. 31, 2014, the company's total debt stood at $4,104 million. The company's total debt accounts for 52.05 percent of total assets on Mar. 31, 2014, compared with 53.29 percent on Mar. 31, 2013.

The company witnessed a decline in debt to equity ratio to 15.91 on Mar. 31, 2014 when compared with 24.14 on Mar. 31, 2013.

Shares of Crown Holdings rose by $0.59 or 1.28 percent to close at $46.53 on Wednesday.