Crown (CCK) 5 Feb 202019 Q4 Earnings call transcript

Good morning, and welcome to Crown Holdings Fourth Quarter 2019 Conference Call. [Operator Instructions]. Today's conference is being recorded.

I would now like to turn the call over to Mr. Thomas Kelly, Senior Vice President and Chief Financial Officer. begin. may you Sir,

be and statements. Donahue, With Officer. President in vary we call, Crystal, statements. of call results Actual On on is as could will release, earnings Tim and from the a good you, number me forward-looking such morning. materially today's this making Thank Chief Executive

subsequent filings, contained press release and and Additional information cause could for the that filings. our actual results XX-K our in SEC including concerning factors to in Form vary is in XXXX

the quarter. growth. up both share for versus prior in compared by versus sales $X.XX quarter Segment income primarily and to $X.XX to were share year, Europe European due in X% Earnings Food up Net quarter prior quarter X% Asia Packaging. per -- Comparable in were improvements in the Transit were volume the $X was XXXX. the in were Americas both year and in results in per quarter offset beverage X% earnings beverage lower unit as the $X.XX can

with in the million, release, $X.XX adjusted levels XXXX $XXX XXXX million free between capital a current of share. at of tax outlined $X.XX year year of between $XXX remain approximately XX%. full approximately rate and We estimate full currently per rates spending. earnings estimates and adjusted These and year their XX% full assume we exchange As estimate cash in flow

Tim. the to call turn I'll over that, With

you, Thank morning good everyone. Tom, and to

for year, strong and global operating X% segments. planned the food to in X% As mixed the a prior volume quarter was quarter European weakness full up was offsetting demand year bit the reflected performance as expected. in last in the volumes beverage And with reduction compared release. for activity night's in fourth transit. remains continued Overall, across and our cans Unit period

overall from translation. the $X.XX from Free per pension expense close even share adjusted currency full as least XXXX to demand light curled came at $X.XX production commercialized XXXX, and aluminum noncash transit lower the from in record we conversion scheduled new with million we per destocking to a to XXXX. the two and $XXX For for activity lines lines headwind share, four in of year, or lines level significant of activity. benefited growing cash in X the earnings new flow, In beverage global of after manufacturing absorbing cans, steel for response diluted

of in We have summarized and night's projects last timing the the release. XXXX progress announced

portion a foreign to compared CapEx, income the translation the focus on of will in Q&A impact little to supplemental announced expect call. performance. exchange And XXXX. this that comments we XXXX the rates, at we increase today's As have table, In my segment, to so currently sales have of XXXX in currency-neutral provided by currency we'll and leave on impact currency

Before for is declines impact work the operating as equally in XXXX. contract, steel cost split aerosols first That the diluted adjust our Food quarter, first in margin European our in pressure selling we the will reviewing businesses, will $X.XX roughly higher can in result the inventories. quarter which segments, businesses. and per In according to mid-single-digit nonreportables through share among tinplate prices price we and expectations steel are food our

is pound aluminum this delivered time year. than Today, about last $X.XX a cheaper

lower for businesses, margins. pass-through impact on but we reported this can beverage no in all on have almost in are as So aluminum, the revenues will result absolute

of began Rio in up quarter, new digits plant perform plant Latin Americas significantly segments. commercial volumes low to the the high-single to American North late operations in its X% shipments and double The ahead mid- and America continues the In Brazil Verde, in learning to up in with curve. Turning advanced overall in unit Beverage, the November, the digits.

began XX% Ontario throughout Nichols. markets, review year, in the Weston, QX headwinds Demand of we the and shipments opportunities all the we for the remained strong reflects and start-up line the The of in volume increased third January, to third in faced further an continue capacity and late for and at early freight Americas elimination the expansion. expect nearly quarter up excess XX% Segment for other income, in cost XXXX. and line

their For quarters to perhaps curves. and the respective XXXX, magnitude as although work post we not towards Weston income in same expect and the gains, later more XXXX, segment to weighted the Nichols as through learning

X.X% European was new the X%, notable volumes to the reflecting prior Middle France the also X% and up unit related X demand increased in for Europe, in to in were Eastern Turkey. the Europe, segment quarter, year and were And quarter. in Beverage Gains and year, Middle Unit facilities Spain. primarily East in firm X%; X.X%. up up volumes East, with the up the overall volumes Italy

needs remains the in And situation improvement. while market expanding As overall the believe supply-demand Americas, profile tight. the capacity, review return we we

although For conversion. the segment's first quarter as bit we performance, as behind of in quarter first will plant entire the the a down the XXXX, be be growth complete for expect income Seville the XXXX we quarter will the aluminum

had in unit X% very for poor quarter forecast in in coming the volumes XXXX. food the and is X.X%. below X% up year, improved the Sales growth harvest off well This we're European we a

ended including in and price not earlier increase enough mix was As to discussed cost cover led quarters, negative steel. decline the you combined tinplate XXXX income lower the inflation, for we increases, QX production the inflationary in with levels, This selling in segment far have as that backdrop price quarter. to of in felt with negative the while did be inventory, the against system quarter much market in steel a production tinplate the will which first of And declines. we XXXX, with the we higher-priced activity through inventory runs lower mid-single-digit too quarter, fourth year still

XXXX, year. overall the level the business for with So underperformance QX to recovering in of performance a

performance fourth repositioning from in effect bit a volume full we've of flatter quarter Asia XXXX the for expect double the Pacific recent Southeast asset both year. to as years benefit low the reported unit China be demand and for than strong takes full impact continued to And our up with throughout in XXXX. Asia we in XXXX, late shipments digits

in transit packaging quarter overall X.X% steel. lower lower for sales packaging notable and principally volumes the more to and and off full X% for pass-through X% raw the volumes due materials, were year currency, the year and Net of declined in the X% in protective declines Excluding with quarter tooling. in the

in under-absorption cash a XXXX quarter flow the year. end a million, more the its And higher currency, too in as million year far XXXX business a adjusting from The that of million, stands of to and business XXXX, overall XXXX. of in And very generating fourth record quarters in capital for seen income backlog Equipment and and income this at performance weighted investment. unlevered above $XXX at segment to $XX expect deliver. -- is drive few last reduction a million had resulted business of the for fourth industrial end costs acquired levels. the despite by the not cash business certainly, working very the down Segment time activity business capital fixed number $X comps XXXX is And The of lowered a minimal markets capital favorable. $XX businesses free EBITDA in XXXX. well across third operating be in mix business company's become the at as the towards XXXX, over slowdown levels of than to flow percentage we working volume, year proportion reflects exceed record and cash free I've XXXX the flow, we and XXX% planned plan significant

earlier, start and Board's nonreportables premature through year review in American ongoing, would the softness future capital a a slow in overall allocation equipment, warranted prior gain will Fourth with food And in improved as businesses. cans results we higher-priced full described posted to Board offset return but The aerosols. nonreportables strong strong conclusions, in income over portfolio is quarter provide cycle us can benefited the North comment businesses making it decisions. the and can-making from will QX, global inventories. equipment our year, the ahead for of as by the for in and we Board-led year, steel market And combined result the beverage be updates as

for commercialized stated shareholders from new deleveraging headwind a almost productive capacity earnings, in outset, cash top Adjusted free in $X.XX all creation So future. beverage items, two flow, to despite the more on as XXXX. on target XXXX, significant nonoperating in leading XXXX, of the and come year year -- record value significant in at of to we the new can with prior

of choice, future. and alike over said the last their future bright. its we least embrace environmental very the inherent the for package industry as offering growth As cans is beverage a Crown Customers since other the have in time opportunities can substantial substrates, consumers this continue to year, and advantages recognizing at

as in if responsible and food limiting compared package trays, important too said lip less can. serious can be should others. of should embracing and packaging year, and the Equally other giving When rates, and food and packaging retailers, choice be not then waste, environmentally promoting it thermoform sustainability governments, as and among comes recycling NGOs, food cans, just service about among advantages, to others to they food consumers, increasing such pouches the are last it the we

you. take Crystal, that, to with And we're now Thank ready questions.

Instructions]. [Operator

Fargo comes Securities. question line of first the Wells Gabe Hajde from Our from

we Tim, machinery has to It's can given see of Is talk anticipate, on business is pretty the where growth that lot up activity? business. the very margins. attractive we that revenue coming then often, understanding size you that the guess, would about maybe mentioned expect side beverage you my pretty it something we would a that but something and something can not nice the I that years, over

Yes.

So cans. describe revenues the the third-party It's lot like of will run order within businesses, as sold revenues million. agree given but for business through -- forward. benefit we your careful a equipment that, which the about we we tooling business when revenues, would thesis little point eliminate And Crown the outlook positive a out, the as We because intercompany with that should are question always look beverage $XXX that, and cycles. on affiliates, extremely of a among your you

the consecutive I'm years there Mivisa optics wrong conditions. structurally that us of that if growing years us that the marketplace isn't and crop we the Okay. European the acquisition, concerned -- there's I five there anything that side. But of the been should to past gives post you be the at can terrible within food look point to two then over about? and statement appreciate confidence is something yields we income And going to just moving

when think we share lost Mivisa lose the was market Certainly, or -- $X.XX now. Well, can haven't merchant we at acquisition, order on the the in I the if notable seen we completed after any XXXX, about It's any euro haven't self-manufacturing. don't I the -- think share. And to Mivisa of $X.XX $X.XX. acquisition

in some So -- some in reported report you've what of of seen currency we dollars, you've related. so reported seen is what

dollars. business, decline an That effort rightly too to you volume the had as had, all in didn't did year, in of On adjust cost try bad to we the customers didn't enough to we just we as 'XX make side, we as the point out, with pricing. sure terms received experience we we I declines earlier crops. you is perhaps, advantage significant didn't offset and we in inflation a But -- And euro in costs. some in in the much think, nonetheless, we've like as steel, we 'XX described but crop, 'XX terrible pricing not the perhaps the is, in see not in X others,

are the address to that's didn't pricing working very disappointing And harvests on that think I well. to But anything business. I frankly, the We've a don't going try we couple think wrong and in there's had team we something structurally forward. of manage and

So to we've business. in managers change in incumbent new a the the made it's turn -- that we're And the business on around.

BMO Wilde Our next the from of Mark Markets. line Capital from comes question

year-over-year It's talk little a about million that in be a $XXX can large what there? Tim, increase. and fairly I we CapEx might bit in wonder,

a me about little Let it, talk not lot. a bit

with million historically we've the million. for $XXX think number in of at spent, part you $XXX beverage capital of I years, been and just around the But to understand competitors, cans. by the for beverage associated very the business, making our a So can, and last Crown's, moat you've is nature last, not I'd say, least Mark, can plants, X historically. in its that of beverage the the order infrastructure but

well. So of you -- to it's as enjoy got beast, feed part And the appreciate we that you've as say. moat so to the

we business are as light there's in rewards accelerate to some the the mindset in the North us we a opportunity the and an most reposition capital at reap the look Asian on in So we America opportunities for that and growing the future. have, business, and for of favorable certainly

that said you announcing the you ends. them at I away prepared just X should to X see projects embrace that perhaps, Pacific. are I prepared I from Asia remarks, you we are telling you the to we're a we're trying April in working would projects But to and we've But and publicly about other don't as about. more the in and detail to that, described the far would we're will quite call. news working talk that tie So that to in point. comfortable few this as America consider release, X number, what on in loose there a are It's on. But up we're actively say, that But we not North talk there think we're

seems in couple terms trade just aluminum see some also kind kind only Okay. about supply whether of like seeing issue expecting what can America? what additions I sheet complicated over last supply -- you're at might in of values. you're been of an There's of or on Tim, sheet around it here the can years. North talk the kind have can mean, I scrap can wanted we sheet all you the and with things issues other of it, side of

just could on color issue. little we So that a get if

Yes.

to with net any they So I -- in specific do great aluminum haven't the else. perhaps -- sheet greater has not scrap any to mean, terms producers issue more we somebody to wanting American aluminum the can It in proportion scrap provide. is the back than take

own any coming scrap in want and aluminum other back So, more than need their i.e., smelters. they is taking what countries, they to reprocessing don't if from be in

can sheet there's globally, think aluminum plenty I of available.

par to the China supplier. all we quality is soon try do attain of question not at for par if at the to and manufacturers sheet other Americas our to Europe. a a or price the The aluminum can manufacturers can customers. we've them. And that leading, leading, best the price, our America? the and be said is in of probably extent, It's we will as be question I well. more you sheet sheet going in North -- by is give see can that's can to Well, want earlier, there answer to they'll created as a they for some supply the that is, the to best reward to

is business of supply out sheet but capital-intensive. their can So there. And -- extremely there's plenty

question next Staphos from George America. the Bank comes line from Our of of

European to hit want if could. on Tim, first food, I you

Can is basis, within earning fair a a up was tough earlier, longer-term been you're I think think a Gabe, of -- there obviously. The but return do beyond harvest, And you you couple need So business teed what to, by just off secular couple on amount maybe coming you have other relative issues dollar initiatives to capital? as maybe cost a now obviously, get need of comment what your the earning business of it be to follow-ons. is pricing, on I the you then it's cost or what pricing, to of have to capital?

capital too we above in in billion spend -- capital spending in but earning for Yes. about can little much a European Food. we're million year. well We too -- Food, business, I Well, we're listen, our a we whether don't roughly cost $XX of clearly European discuss $X or

cash not that's is in minimal with by the the flow backdrop very generated against business of much. even the that's CapEx. the year-on-year, decline tremendous So And earnings,

with as whether capital. enough have not can its of well or we profile from doesn't down a clearly, we're spending amount. an significantly we're discussion of spending And years. to It's satisfied appropriate earning, whether business. earnings mean That it's But so above cost the recent the we're

we've our performance. got Okay. own The disappointed in we're But harvest were And do better. to honestly, disappointing.

pretty that to do with the balanced or not of close has well I Perhaps. because we mean or declined. restructuring, X think X really does understand like some X X plants, to demand But plants? need before do that, we're exception Now we'd we

some year, but cost we're and I see around think pricing demand more recovery. appropriate to going of up it's this levels pick

not George, better. very We do So to is need job answer, good managing we've the a business. done the

Understood, color how exactly And not of, Thanks in Tim. for but it. biggest had, worded don't candor segment, than that. guess the I question more just your you know just on the a bit the going I trending if through next us I better can flat? get you why I give Asia isn't terms list,

I year think to in we impact versus China time about were So 'XX, the made just 'XX flat the 'XX 'XX. that 'XX. X% this to feel versus X% better going I did full in comment repositioning we'll be they that last same in the at and of of

So we're in another going down Chinese take income this year. to leg

So down we half fully last 'XX, in and I from the way probably year the in way what go we'll down of went expected 'XX.

So then Southeast -- a But kind we're in pretty we of kind of again satisfying we it offset will Asia. a growth then market, And Asia. overall. reset start very growing -- in and the

have we're other regional think and is a have low-cost and it what, we're percent is compared competitive, very positioned, business earning, well but profile earnings, -- competitors the and to growing, XX-or-so we we I there. certainly the

to continue stable beverage and question says, cash significant generate The global your of funding other that question, can as cans, seeing you your spending, press kind businesses release press release, I ramping growth it last transit in you're beverage my capital packaging flow through the get Mark's free of and I noted the from expansion. going And projects. think given but metal right. All some in the and and just you're obviously,

constraint growth on beverage that the from given that So the and now that finding you horizon, How of stuff stuff cans capital allocation should you take beverage of see we that? have cans, you that have that, the the the aren't in through portfolio? us kind talk both of can rest or a all the you in would not? relative And you to you -- about think

always guy. a you're clever George,

process me interesting about talk the So to get you're an trying Board question. with to here

other see we're what expanding the fortunate described that years, can We'll global of think But flow described even the modernize continue and happens I that to think free extremely opportunity businesses have and the be cost going the that the years. luxury profile we for we X it business, an investing such I footprint, becomes And beyond several going cash. require or have an we consistent that customers competitive others the cash that next us beverage the the generate think we've offer certainly, out against next years. to and and our have business. does in substrates, lower several to it, beverage next but stable that allow footprint, X it's healthy are more can the for I to build that

Among shareholders and organizations, want, but businesses, not they and from growing only other share want demands that shareholders buybacks. dividends want

put beverage flow ongoing stock those the the buy and afforded would cash trying ourselves ability understand pay product leakage should fewer as growth only in the now, limit overall the back those and accomplish, being when to cans, the right to lines a and it -- and in of to product to they're So thesis from the come that has you but to future. separation is we that's Board in not the the dividend product together, versus lines all organization process to offered lines

statement believe think release straightforward. We press in pretty we're fortunate. I So the the is

portfolio time free remember to this number that in And have flows, stable this business. in at always beverage businesses fueling generate which, We the of consistent cash in are can and growth point the a point it's a in at time. important

me So is point more I reviewing Board than appropriate that to the at don't for that. any think because it's this say

of from line comes Panjabi next Baird. Ghansham Our from the question R.W.

$XXX CapEx I of obviously, which be, to for company. the guess, So record back a your going million, would

leverage this a of post-Signode? high normalization, a mean, a little And whatever is spending call to I you it? catch-up function level, too from this is of given Just sort want your phase,

I the then the as and mentioned market And in for think increase you likely Asia CapEx. North America

you North plant the about region? And should mean, there, America, had outsized but enough additions? about seeing for capacity so what growth the that Brazil, to the in or line support think given market in the And is region? new growth outsized really we the I obviously, we're

Yes.

clear, So looking And the the America America, post-Signode. plant. we a new I the a large wouldn't Asia, probably underspending think we're Asia. new a it you, existing line in in I think would could at additional discussion in new the -- And -- perhaps I a perhaps in addition it's and was And I North And would I certainly pretty plant. with I projects tell and envision North any consider or plant Ghansham, wouldn't not pollute regard. probably

to I back think to affords signal, money. but come opportunity what Signode can has spend. afforded us cash we and is us flow provided Signode more by cash the to The spend the Signode,

that wouldn't in to in that -- growth underspent I'd up XX the past. shown I been negative we've no extremely prior. tried a had that for growth say XXXX be until say to market years we've disciplined we've

and time XX probably okay, growth. And, growth in market to right that see XXXX, has in the 'XX. going first So see again for I shown 'XX in in years, now we're and it a we're we'll think

fairly think in now reckless that up capacity. market capacity whole are to real prepared until But expand of -- we growth. a to throw XXXX, now would shown been So lot to it have I hasn't a any prior of market

demanding alike to past. So the than has from underspending. And It in just nothing they market. customers certainly a of have and with our do cans Signode. beverage more a not It's consumers reflection

then call question, XXXX operating break your in EPS out? bridge else and how XXXX that does and the guess, midpoint and XXXX of standpoint, want whatever Very increase to I between then clear. my from pension income high-level for And guidance, $X.XX you down using second a the

you. got Yes,

pick lower or costs. interest let's So on say, on up, we'll an $X.XX basis, $X.XX after-tax

pension. not ended And We to tax about compared a on few we'll of year's is will flat. Minority pick this actually, be have a -- material. on a bit cents tax up about up we're real rate, That's where drag. we

the let's X% income. And you so take then flows XX%, rest drag say, the midpoint If there. operating XX%, a the of through

'XX. in by to said prepared just had the the segment, In flat. higher although Food remarks, think slightly have well, be will be to like I in European to because we Americas Ghansham, business 'XX European summarize, we will down Beverage although flattish the QX over beverage as be up not income, conversion. million of would Yes. the total, $XX higher Seville segment will

we Asia Pacific recover Nonreportables on on flat $XX we to million and Transit down year. steel that about year. million go the through just as up the repricing $XX the won't

all the -- income in prior segment over that total. up So together, all putting year

of Our next Anthony from Pettinari the question comes Citigroup. line from

huge understand Tim, XQ any you have China have customers, And bev does Pac don't I guidance chains? you exposure, seeing from you impact a knock-on or coronavirus your effects but seen with the assume to or transit Asia supply disruptions? are any direct Transit maybe

I So business very the think million we revenues of -- $XX has in Transit China. have small a

we're China. not up lower would transit and from a a almost in manufacturing second we'll some anything, China, it's talk given other nonexistent If expect and that factor. there of down, to offset shut to you So a about activity see pick prolonged that in we if markets perhaps, perspective Chinese exports in would in was benefit that a

are on right shutdown In now. mandatory we beverage,

this. companies They they're it heard I've make down. describe sound other voluntarily As like shutting

know, the out industries through February the you Beijing, New except mandatory X, Year, XX. a other for Beijing February so mandatory of critical shutdown Just Chinese through every and shutdown province, coming almost extended had

on reopen mandatory we'll unless Monday extend So the the plants next and X shutdown. they can are beverage shutdown,

don't beverage big a China. business in very We have

As this we about described it's a to in And $XX sales. we're year. income expecting lower you certainly, before, million

don't and -- budgeted forward. So itself we'll and haven't how we for anything significant see we any going coronavirus, expect it manifest significant

and on for from projects are you any that's And of I the full new could XQ in up. a Okay, provide online if then few coming moving the last terms costs was projects are for level that year? anticipate of and there wondering helpful. maybe year start-up pieces you commentary ramping then

Yes.

-- we number would say Asia, talk I -- a of have projects. always So always when we about I we always

costs are years. to QX somewhat Weston in see So prior Nichols headwind line start-up a learning in through the of we from start-up costs equal in beverage and I the is But Verde the start-up just little in in the blowing their QX. right think preproduction will X costs Americas curve. Rio

So have everywhere, phenomenal. experience like Civil, We, as European we'll don't which expect a could large we to we'd X-line don't I much plant. of is have Brazil if I others, I discussed, the an be that -- impact. have beverage, very

line the in April. because probably be March the the end will not early and is completed. at We in QX cans being other cans conversion making line We begin making on of X the

there. So But an to make aluminum workforce cans. pre-production steel experienced easier and cans workforce can some have are the is we them

bit Americas nothing But I with to in else. rapidly really, expect learning them come fairly beverage QX. little So curve through Weston a enables,

Our Jones Bank. Deutsche line question from the comes of from Debbie next

and growth in here? can, asking some you you cans. want your really longer-term standard -- go from is the coming that sustainability. of of have I standard it is if think ask these conversations see as been is, And where to the guess about back of lot think do can about this the like reason you a on the your ask with we customers where can for have to wanted I know people customers, the the for is But or I'm

add them, what do capacity they they new you as grow for forward? you and prefer As maybe with going

great So question. it's a

of some for sleek we're products, in slimmer for XX-ounce the formats. the seeing quick newer real customers, and that think, I newer some cans the

I the think existing it's For customers, both.

do customers -- back and gain They sell big are they they're number of their big and of are number it space more are are. are think the shelf they're more a jurisdictions they existing plastic looking who nationwide, pushing which the of across a and to to looking dealing with I product, certainly dealing formats. one-way -- on packaging

ramping So promotions as a But slim. seeing from up and for time, more they same standpoint, the well. of sustainability sleek are XX-ounce standard we're at the demand

wanted And specifically Europe. we that And Or several there growth, are in Okay. expectation just on the years driving well? Europe? other speaking, things specifically If your that exclude to of then is East, that could you a sustainability is ask story? I as mentioned Middle broadly

Yes.

So you're right.

will I flatter demand, the be to it because East, region our exclude our but it's grow, Middle profile, think good the profile probably will flatter.

the say, I And have reference expect point. a to We the Tom, as European you the grow. beverage, continue here, as think, again, market, market, to number you just

we me, what with off tell did, it's market bear good jumping point. Just think a the I'll you

think we quarter and we lines several to not I And a full think X can X%, Europe in the market full think fourth on in market both output for expect an for years do I unreasonable the per that's the growth year. of up level next the which requires total, year. in basis, X% over X.X to was the

to I and subside. -- expect So don't that

see beverage. we're continue I to to growth in European going think

it now, return dedicated As us, the capital that a profile big more market, needs grow number It's have that currently. to throw and return market profile we favorable. very see grow, said before in but Right to of to at we'll million $XXX profile and healthy return more my improve. we I beverage European any we will capital wait will for the be however, prepared believe markets the where remarks, a is is

comes Capital Adam Josephson from KeyBanc Markets. of Our line next question

to bought talked how Transit enabling then some in our cash lot your think portfolio a on the you, it as saying the it's it's There you have in about funding a do. about in of the this and so just it lot talked you rest And doesn't prepared you're beverage who, are a same we packaging, the call, expansion EBITDA what look, ago, place year? you Q&A, it generated doing. that a announced at the which trade. percentage Tim, last business, on when thing cash, a and you that it's cash, out that when multiple Obviously, the than ton the down more much acquisition couple said much And investors it's doing it's how remarks of can obviously, dragging generates business. there years of this much you're you wanted that of the a generating of of you

dragging perception some about the multiple, that doesn't down it et portfolio, that cetera? just that you belong can in it's among your So talk

You're also a clever guy.

You're trying talk to about do before to get me it. prepared Board the we're process to

a which say, think the good where I team opposite managing not pretty I we managing and Food, cetera, I done Transit as within European business an et say it's environment across would business. are white steel, very just in end The number the exceptional I George scope manufacturing said, have candid whether done job was what down. job auto, Transit. was goods, would -- on a I the of of markets, the has a So

is said, And as and X% I EBITDA for currency, or bought we cash we've X% you in as And note we adjusted the in in high. think what of flow, 'XX, extremely the XXXX. is did

business what this past the So we've EBITDA flow cash-conversion the range, They're CapEx And as minus a conversion the that. accomplished in year divided -- and described this even by unlevered. EBITDA. business business well beyond is that's basically cash XX% free in

XXX% well considering considering capital, of considering working its So above taxes, EBITDA. CapEx,

businesses, Board separate they, single-line to So have has that of And multiple to that. companies, in like the can beverage The the leakage entertain can for can what review beverage prospect the of companies a trying future. company whether the belongs is also there portfolio a we is. trade not. might looking there Board we, much looking or And we're things, number other before at how the The business assets. are those is packaging and view in a or companies of they food other be at market

creating in is thing first The value not value. destroying

me further. that's I working now. team probably think And And premature it's think right as the on said, I something the comment I any management Board to closely is with for

cash Just businesses Tim, one that other flow. question lines, of disproportionate generate your you along that percentage those slower have a growing

capital-intensive much you mind whatever reason, that of a and your for these intensity capital a company, even rid though cash trade flow you at really greater? higher would, is if the become good So you yourself are multiple, of more businesses

What Listen, time. today, be a I will what the The be as the do to know what be. the you this will on No. don't I might higher It dark know topic, in I multiple what point him? earlier, While of you call refer Adam, in darkness. don't -- we're multiple years? at prince said I know. it X I The --

it So of cans the beverage to globally, all than we're and on you're does beverage but packaging a space take fund positive outlook and across for cash others, bit more negative the on this business. very space the

trade beverage time, to we'll down X And need in the Now, we the gains, years think for multiple, we out I and perhaps want cash thing. growth will But start to to of point-in-time grow the or you beverage it. to if -- of in assets beverage more X harvest beverage to feed a slow now, for one want that's business business. the

first to we're the I said, the talk understand about, and process value in to value, near trying we means think, of premature but as that creating it's term. don't destroy

packaging And transit just EBIT guidance 'XX. on one Yes. for your Understood.

expecting I $XX said it to versus think $XX you're have? not of to you you manufacturing year-end XXXX. reductions just get that the would better be activity was driven How assume is much million outlook -- whatever million. I at too globally inventory up in by much market it

the So separate I'm there. trying to just pieces

slight the to the of number some economic forecast think activity they your maybe we see of pickup. perhaps I out at of back a indicators banks, there economic including economic you look are a if own, the and year, by the -- point of stabilizes the the and that and large half kind

the half then, get in our and easier -- year. of comps back certainly, So the

half and a So half, to overall. first comparable the soft back but perhaps, $XX the stronger $XX a up in on basis, million million little in

the to -- not the that, team inventory, has overall are only they -- that good reduce we've but -- exceptionally and plans but have reducing So and in well done costs. job advanced an the

income So the then, from would on the you the be certainly outlook business. than more I performance for bullish we're think outside, not the understanding

comes of Our from question next Tyler the JPMorgan. line from Langton

a had just question. I

said installed given share sort you you hold year of X% I digit sort the on at I about X% what bev, in of of is off far, this would returns? sort with you think think you've of growth of in sort higher in mid-single sort of of, it your question to to kind new mean you guess if so do capacity, And investing volumes market. I you I you Europe, mean, the sort of of to guess, and guess, the grow sort XXXX, rate? potentially sort when you that of how I -- bad look able not and versus sort losing be of sort

rather I market don't bit invest the that the and we but of that if a if keeps have to better my their to invest the invest, that's plans, others I'd us margin markets just raise want return little the and that's for price you sustainability market. profile and raise invest and It's possible the need your lose in customers we'll their in think growing and And of share, to profile sake share, see message hopefully, to plans your message support if a growth that team. us to we than

components, on Tom, a the guess, of then you free other flow some -- assumptions give working helpful. could pension, I just like restructuring... little the to cash for That's And Okay. capital,

XXXX? For

XXXX. Yes. Versus

XXXX, we Obviously, to about We'll as was $XX that. similar growth. that, working million $XX some we Yes. But capital beyond need real a capital increased million be can The cash million. benefit moving $XX piece -- expect say, to $XX talked should pension The had capacity. in beverage to up support build at the drag In million. we we is CapEx. working let's the XXXX,

we'll than So do try capital million in better drag in working we're probably that. $XX a to about looking at of XXXX, but

Markets. Arun line RBC question from next from comes Capital of Our Viswanathan the

think I off, guess, there's the guidance. on many I first don't questions

other in how range many can guess, getting you just in. that I dialed factor you as FX range. provided. food assume as impactful beverage your So It on Or seemed you XXXX? are similarly, thoughts range growth, the that of are And provided that factors pretty the thinking Transit and about EPS? European around to like maybe the we a tight a on are isn't

So Arun, $X.XX it's range. a

with provided typically a having we've what we you anything a greater It's think 'XX 'XX, that doing. 'XX. or Currency, in range. kind of I large headwind Tom than without than comfort having are benefit currency we cents in be more versus should in to $X.XX we're level comfort any of as provide in 'XX few opposed much hard any you sit here versus it muted, a to was today, in the it's 'XX pension, as impact 'XX. described

I terms We much on of its point, believe -- the here we start don't we segment's described could it's to But of know. in here, we pretty we've don't comfortable each as income. think Anything for segments accomplish at happen. of sit what to the with. forecasting think is feel range we each I what think we call kind segments what this today, of want the going detail in is the

we're where So what kind do know, at. that's we of for

provide understand agree Okay. businesses I I'm flow That's a and Signode there that of fair. with has cash just guess, your food do and transactions within again, notion And then portfolio I curious, the just guess, just, some on can. I both been quite the can would review, bit food that.

Does this is whether JVs be examining into could selling scenario something transactions process the business? be potential where as the it there -- And Board review? creative, well of a would a portion this look either do Board of process or as part you

Well, review I at I'll just think think should expect, the that that. I we've you is it and comprehensive. leave it said

line Leithead Our next the Mike Barclays. from from comes of question

growing this approval -- the with today continue this how at do of you how rate higher-level rapidly But competitors you no-growth, guess, very are when your line, trend I get you through and beverage you're question new guess, and there? comfortable market doesn't with guess, major I outsized longer-term the -- process, the again? fill appreciate overall to demand overcapacity kind I on risk just stuck I market's we're that the and capital mean, risk-reward to do think about investing can back and demand. I the your market. the going reverts

the additional think way the in we we negative, response question not forecast past. any market with. in the spending earlier, and always It's question It's no It's Ghansham's underspent in that. tried wrestle was -- to the was asking reflection that spending. reflection to you warrant I market, say a the spending growth a is for in in Thank the what XXXX, in the that that that did I

So of And couple what years. today in we growth. for we foresee next is I growth North think the see America

to becoming And are specialty where we line for in underweight more in are positioning we cans in fortunately, us, market ourselves the specialty. with

ourselves to market an in well, market But the and alongside to with appropriate want opportunity North don't spend the as regard. can that we are aligning growth the growth, American the more So in without regard have say I we specialty in market.

we opposed at-market world, our levels specialty of higher As or even of are sales. where proportion can rest to the as the on

'XX, the and the right we And is we'll the years, the first growth, somewhat had then I've growth hopefully, question. in to past, an -- grow, to Asia, and it that here. be responsible your we're the of continues long have and very a 'XX. market negative was next said to -- growth going trends. Mike, year as spending recent of in and we've time, And It's issue. 'XX think light that favorable, couple all said, in additional or and in growth of in especially question is as But going for and we in that's so never But growth think I

there's Got at it. rough No, the that's you're helpful. time. regards just there time And overall going frame review of the is I the wrap making And anticipate targeting strategic a portfolio? then in announcement, report is if to by? on to appreciate Board timing, process, process no you would just change this to nothing result But even formalized review to the an you're this up

things. allocation, about portfolio of talked we we I about refreshing Well, talked think we and about we the number Board initial We of Directors. capital review about the when made announcement, a talked talked

Board the So ongoing process. occurred. -- an Board that's refreshment initial time-to-time, and retire from Board members has the

I whatever expect would review more late appropriate that April the rumors to suggest expect that probably, the the you time frame. I to conclusions. And to it's outcome publicly in that portfolio regardless probably will that is time the its April marketplace, think the the be it's should Board some of of you report in you that

Sachs. Our Goldman of Maguire the next of question Brian comes from line

think number wanted to that, X to we back materially to beyond you X what And related guidance. then the materialize could CapEx the assume be do right $XXX the CapEx Tom, million is unnamed $XXX come to below if just I don't or projects of the Should CapEx that forward, sort million? go level the XXXX?

if we projects be would don't to I range. million think materialize back discussing we're Well, yes, then, in million the $XXX the $XXX

we're comfortable pretty lot we're they're you April tell not materialize. a going -- more. that in think you just I We're that prepared right tell We'll to be to to now. probably prepared

we're modeling be doing. come tell a I million should, that you to purposes, in you the $XXX we're we'll successful, be closer because number think your think I couple to here, back So conclude and and what of months we're you should going for going to

What's an a appropriate for capital great of growing question. amount a That's business.

slows we'll growth to capital I business down, don't the if continues -- think business. slow on year, to think business the then then growth. there, we'll this the needs the to If I spend and down. the from build grow, of we feed continue isn't it understanding start where We every And every -- a our try base government our budget budget year. maintenance you needs. the

we're where but -- So now. at right that's

Florida. was couple into news the And market of the Continental in a there last months, Okay. sort of a a new of U.S. in entrant

Just if barriers your you you CapEx And kind just about on that. in had general, any of, entry you to about talked thoughts when talked spending earlier. wondering

the talk capital see the you growth think or others barriers we're those start attract industry just -- or how you the about seeing you whether and Can into that that to in not? whether all flowing could

cheap There's out of argument. a rates. very positive growth. the of There's Well, available money there's momentum of around a lot at a lot sustainability lot

So do anybody capable anything. is to

in a I speculation. new market. the American on the comment on see North don't to big having hate impact You Florida factory

that not doesn't I the factory the manufacturing us, directly back -- into see be so but think what we a you everything impact in impacts have with going don't do time. lot of those We're indirectly Florida cans We'll headed Caribbean. it market, are forward. they going over to

Others speculate know. don't to may that market. But as said, come the hate I I I because to on

that able right think and X footprints customers do in we I somebody better with and makers, and think to others existing national or in the region. absorb have I think we our and can I there's what are we needs we're regional national of X enough -- comes to growth footprints, plants than a service the And now doing. the

for start a XX% this down market, not that Last know DWI Okay. the law your strict out I've quick just in I in And they biggest seen me, a one. to but it's one pretty Vietnam, some the something seeing reports put year. that of of out? is that is sort so Asia that Is year? beer that play or market. part you're flat in EBIT consumption guidance

agree. what said, the with you should just Vietnam everybody capacity. come you tell world, So they I and shouldn't around to any to can think I that, and they expect need more

cans, Vietnamese Now XX% dominated by is we've no a market. in market. honestly, in industry beer of continues X the One XX% is you glass. it is to The companies rapidly be a seen in what beer It -- growing there. just currently principal described impact

the cans, just XX% glass. -- in in reverse, in glass XX% is other The or XX%

to XXX in with Vietnam. class, middle has do people. growing The with extremely market, to It Asia has we're closing million well-educated growing a on flat a China. an do So performance population, describing nothing

one comments but that So reports, earlier pre-call saw any law. the in seen the impact from of today we've one Vietnam, I of not

comes Our from next question Stanley. from Neel of Morgan the Kumar line

you've allowed mentioned have fourth only North you're on you realize constraints to last volume growth given and in America month? you North What new the on think quarter, capacity been America. Weston in the the bring in I growth low facing double-digit line

for typically very can. low it's a Well, quarter

industry, we first And build the quarter, oversold quarter. in an in cans third second are So and you company. as a the

third build Sometimes, fourth them quarter. quarter for the even on sale quarter into the second you in and the first

sell more just in the quarter, math. have available So fourth quarter. It's being to lower-demand a just cans you

could return helpful. European you a movement on your comment in that Okay. comments in beverage environment? And a contracts think in issue spot in increases specifically you near-term you the had given up referring to and Is Europe, the then in profile. XXXX, right, your then price similar then All on cans? And follow-up the tight any past in still that just XX-ounce the that's And for see in given getting similar demand mean, do Europe? have the U.S. you renewal I the

XXXX else up contracts commercially Well, over. margin I at there's relates other say looking in of There's how been the than see with behaving we're contracts will always job it that tasked to the we renewal. North improving that we pre-XXXX, until margins. capacity. team America as And won't are for behaved has the roll that improvement, anything always to similar

to profile I see the would margin love improve.

profile overall an about I XX-centiliter, it's be think market sleek and or needs -- it that XX- or XX-centiliter, improved. return cans to talking slim whether and we're XX-ounce XX-, in XX-centiliter

Our next question comes Mark line the Markets. Wilde BMO of from Capital of

kind first [ph] can One, got know Yes. and Tim, of if about just of building Colombia. impact follow-ons. wondered Brazil their there. curious. a I'm Empaque what you quick in felt just both the ABI from talk couple And I coming With Colombia, Brazil, seeing I could plant in in? We've you've you're

could come at of you I lot there out you just sort know I of of if contracts renegotiations were about, that is North the And a generally of then in start America. what wondered thing, talk repriced the have can second seen these this year.

all like of pass we were where you ability the to were had other be us if to just would versus price where getting of it understanding think you through. kind helpful costs getting I terms of or some

tomorrow. I'm your to to on allow that ask question, going question Yes. you second Mark,

You're they don't it. I I going that. to a frankly, see chance we'll answer answering advantage get want to see if to answer want that. don't and that to tomorrow, to ask any But

that through other our On we'll of we third A It's came of significant and the of 'XX, but Colombia. a back QX is in the in we're business -- business first described that question, then competitor QX lost rebuilding QX into QX, 'XX, way, the quarter. with chunk yes, itself the And and customers. on cycle market. we

just should on And beverages, to cans I we the fills market have the distributes we soft and Notably, are. partner there here drinks. continues beer Brazil, and who finger it, kept -- again, my have grow. can In both but to

the estimate in were up because 'XX. XX% just industry Our capacity. is over XXXX of And that grew about we at X%,

be we the capacity in up up QX, on. in because X% just we'll a and were more Now came XXXX lot

it's going to I think capacity new that you to described it there's capacity anybody in -- marginal beverage in. growth any other we the as that new in well else for enough continues It's put the cans. be plant as a an absorb market market the exciting in, puts

billion that Tim, last and by talking really you're grew X about terms, in something just, a So just year? rough market like cans

Yes.

think you Okay, thank Crystal . -- very much, Crystal, I

you to look call think And that Thank April. in I you very again we today. speaking with the concludes all forward much.

Thank today's thank conclude speakers. all you, welcome, for That you You're joining. conference. and

disconnect. now may You