U.S. markets closed
  • S&P 500

    -18.19 (-0.48%)
  • Dow 30

    -469.64 (-1.50%)
  • Nasdaq

    +72.92 (+0.56%)
  • Russell 2000

    +0.88 (+0.04%)
  • Crude Oil

    -1.87 (-2.94%)
  • Gold

    -42.40 (-2.39%)
  • Silver

    -0.98 (-3.56%)

    -0.0099 (-0.81%)
  • 10-Yr Bond

    -0.0580 (-3.82%)

    -0.0091 (-0.65%)

    +0.3200 (+0.30%)

    +1,041.99 (+2.23%)
  • CMC Crypto 200

    -20.25 (-2.17%)
  • FTSE 100

    -168.53 (-2.53%)
  • Nikkei 225

    -1,202.26 (-3.99%)

Crown Holdings (CCK) Expands Capacity in Brazil to Meet Demand

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Crown Holdings, Inc. CCK recently announced that its Brazilian subsidiary CROWN Embalagens S.A.  is building its sixth facility in Brazil to meet escalating demand for beer and soft drink cans in the region. When fully operational, the new plant will produce 2.4 billion cans annually and will boost the company’s annual production capacity in Brazil to 13.3 billion cans.

The new plant, located in Minas Gerais State, southeast Brazil, will produce two-piece aluminum cans in multiple sizes. The first line is expected to commence production in second-quarter 2022, with the second line slated to start in fourth-quarter 2022.

Given its many inherent benefits, including being infinitely recyclable and sustainable, the beverage can is becoming the increasingly preferred package for marketers and consumers globally. Mexico and Brazil have experienced higher growth rates due to rising per capita income and consequent rise in beverage consumption combined with an increased preference for cans over other packaging formats. Operating since 1942 in Brazil, Crown Holdings has built a strong presence in the country. The company currently has two-piece aluminum beverage can plants in Cabreúva (São Paulo State), Estância (Sergipe State), Ponta Grossa (Paraná State), Rio Verde (Goiás State), Teresina (Piaui State) and a beverage end plant in Manaus (Amazonas State).

Crown Holdings has been implementing several beverage-can capacity-expansion projects in a bid to meet the surging beverage-can demand. In 2020, the company commercialized more than 2 billion units of annual capacity across the Americas Beverage businesses, and intends to add more than 4.5 billion units of annual production capacity in 2021.

Construction is underway at a new state-of-the-art beverage can facility in Bowling Green, KY, which is expected to start in second-quarter 2021. The company announced that it will add a second line to that facility, which will come online in late third-quarter 2021. To meet the expanding requirements of specialty cans in the Pacific Northwest, the company will construct a third line in the Olympia, WA plant, which is scheduled to commence production during third-quarter 2021. The company will add a second line in its recently-constructed facility in Rio Verde in Brazil, which is expected to start operations in third-quarter 2021.

While investing in its business, Crown Holdings remains focused on cost control and capital allocation. The company is also committed to maintaining strong liquidity position and a sound capital structure.

Share Price Performance

Shares of the company have gained 27.7% over the past year compared with the industry’s rally of 28.7%.

Zacks Rank & Other Stocks to Consider

Crown Holdings currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the Industrial Products sector include AGCO Corporation AGCO, Deere & Company DE and Avery Dennison Corporation AVY. While AGCO and Deere flaunt a Zacks Rank #1 (Strong Buy), Avery carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

AGCO has an estimated earnings growth rate of 21% for the ongoing year. Shares of the company have gained 55% in a year’s time.

Deere has an expected earnings growth rate of 51% for fiscal 2021. The stock has appreciated 68% in the past year.

Avery Dennison has a projected earnings growth rate of 6% for the current year. Over the past year, the company’s shares have rallied 19%.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Crown Holdings, Inc. (CCK) : Free Stock Analysis Report
Deere & Company (DE) : Free Stock Analysis Report
AGCO Corporation (AGCO) : Free Stock Analysis Report
Avery Dennison Corporation (AVY) : Free Stock Analysis Report
To read this article on Zacks.com click here.