Crown Holdings, Inc. announced its financial results for the fourth quarter ended December 31, 2014. For the full year, net sales grew to $9,097 million compared to $8,656 million in 2013.
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This is primarily due to the impact of the Mivisa acquisition and increased global beverage can volumes, partially offset by $52 million of unfavorable currency translation.
Gross profit for 2014 rose to $1,382 million versus $1,342 million in 2013 primarily reflecting the impact of the Mivisa acquisition.
Selling and administrative expense for 2014 decreased to $398 million from $425 million as the 2013 expense included charges to reserve for outstanding receivable balances due from two food can customers.
Segment income (a non-GAAP measure) in 2014 grew to $1,004 million from $917 million in 2013 primarily due to contributions from the Mivisa acquisition and lower selling and administrative expense.
Commenting on the year, John W. Conway, chairman and chief executive officer, stated, "We had an excellent 2014 in spite of challenges in certain of our markets. Net sales grew 5% compared to 2013, segment income increased 9% and net income per diluted share before certain items rose 14%. For the second year in a row, we generated more than $600 million in free cash flow, making solid progress toward our deleveraging goals following the Mivisa acquisition.
"We experienced global volume growth in food cans, food closures, and beverage cans. In addition to the acquisition of Mivisa, the harvest season was favorable in both North America and Europe, boosting food can shipments. In beverage cans, demand was robust throughout our developing market portfolio and was particularly strong in Brazil, Southeast Asia and Turkey.
"Looking ahead to 2015, in addition to anticipated continued global beverage can growth, we are pleased that the integration of Mivisa is proceeding as expected and that we will benefit from a full year of these very efficient operations.
"We are also looking forward to completing the acquisition of EMPAQUE, a leading Mexican manufacturer of aluminum cans and ends, bottle caps and glass bottles for the beverage industry, from Heineken N.V. This acquisition will significantly enhance Crown's overall position in beverage cans, as Mexico represents an important and expanding market for both beer and non-alcoholic beverages." ■