Net sales in the first quarter were $1,777m compared to $1,684m in the first quarter of 2009, primarily driven by increased global sales unit volumes and $79m from foreign currency translation which offset the pass-through of lower raw material costs.
First quarter gross profit improved to $250m over the $245m in the 2009 first quarter, reflecting an increase in global sales unit volumes, cost reductions, efficiency improvements and $9m from foreign currency translation, all of which more than offset inventory repricing gains recognised in the first quarter of 2009 that did not recur in 2010.
Selling and administrative expense was $79m in the first quarter compared to $89m in the prior year. The decrease in expense reflects a benefit of $20m ($20m, net of tax, or $0.12 per diluted share) from the settlement of a legal dispute unrelated to the company’s ongoing operations, partially offset by other net increases including $4m due to foreign currency translation.
Segment income increased to $171m in the 2010 first quarter over the $156m in the 2009 first period. The increase in 2010 includes the settlement benefit of $20m referred to above and $5m due to foreign currency translation.
Excluding the $20m settlement benefit, segment income was $151m or 8.5% of net sales in the 2010 first quarter compared to 9.3% in the first three months of 2009 reflecting the inventory repricing which benefitted the first quarter of 2009 but did not recur in the first quarter of 2010.
Source: Crown Holdings
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