Investing.com -- Shares in Crown Holdings Inc (N:CCK), one of the world's top metal food and beverage can manufacturer, were relatively flat in after-hours trading in spite of strong fourth quarter earnings when its profits surged by 47%.
Crown, which ranks in the top five globally in both canned food and canned beverage production, reported earnings of $97 million or 0.70 per share in the fourth quarter of 2015. By comparison, the Philadelphia-based company, which also specializes in metal aerosol container, metal closure and specialty packing production, recorded net profits of 0.66 or 0.48 per share in the same quarter a year earlier.
Analysts expected the company to finish with per share earnings of 0.69.
It came as aluminum prices ended last year sharply lower, amid vast oversupply globally and weak demand in the Emerging Markets. Severe currency headwinds abroad also restrained the company's revenues, which fell nearly 5% on the quarter to $2.03 billion. On a constant currency basis, Crown saw its full-year profits increase by 12%, while its adjusted per share earnings surged nearly 20% from 2014.
Last April, Crown settled a 19-month boycott launched by a United Steelworkers (USW) union in Toronto, which broke out after 120 workers at beer can plant struck in 2013. The workers reportedly launched the work stoppage in 2013, after Crown reduced pension obligations and cut wages for new employees. In a somewhat unexpected development, the two sides agreed on a multi-year deal to end the holdout.
Moving forward, Crown has plans to construct a new facility in Western New York, which it expects to open in the first quarter in 2017. In addition, the company plans to begin construction projects in Phnom Penh, Cambodia and Monterrey, Mexico later this year. The projects will help Crown meet the growing demand for beer packaged cans in both markets, the company said.
"We are excited about the year ahead. Beverage can growth is expected to continue in many parts of the world, propelled in part by a prevailing shift by customers and consumers away from other packaging types toward cans," Crown CEO Timothy Donohue said in a statement.
Shares in Crown Holdings ticked up 0.01 or 0.02% to 44.70 in after-hours.