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Crown Holdings' (CCK) U.S, Canada Plants to Use Renewable Energy

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Zacks Equity Research
·4 min read
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Crown Holdings, Inc. CCK is operating all of its 14 beverage can plants on renewable energy in the United States and Canada. Crown Holding’s wind power Virtual Power Purchase Agreement (VPPA) with Longroad Energy over the past 15 years has aided the company to become first to achieve this goal of 100% transition to renewable power for all U.S and Canadian plants.

The company’s 27.5% global operations are now using renewable electricity, while its U.K-based can manufacturing facilities are already about to finish the transition. Crown Holdings intends to employ 60% renewable electricity by 2030, 90% by 2040 and 100% by 2050 in sync with its Twentyby30 initiative focused on addressing climate change issues. In fact, this initiative supports the company’s goal to reduce Scope 2 greenhouse gas (GHG) emissions from its global operations.

The Texas-based wind farm VPPA generates more than 440,000 MWhs of electricity, helping prevent more than 310,000 metric tons of carbon emissions each year. Its renewable power offsets 100% energy utilization within Crown Holdings’ U.S. and Canadian beverage plants, accounting for more than 20% of the company's global Scope 2 GHG emissions.

Crown Holdings reported solid third-quarter 2020 results. Adjusted earnings per share of $1.96 surpassed the Zacks Consensus Estimate of $1.60 as well as increased 25.6% year over year. Revenues of $3,167 million also beat the Consensus Mark of $3,060 million and improved 2.7% year on year as well.

The company anticipates the North American market to be healthy this year on strong beverage-can demand. Beverage can volumes remain strong in Brazil, Europe, Southeast Asia and the United States as consumers continue are now increasingly preferring cans over other packaging options. The European food can demand will continue being solid, reflecting impressive crop performance. Consumer activity in Latin America is upbeat on robust demand. Moreover, sales volumes in the Asia Pacific are improving gradually as demand picks up across the region.

Crown Holdings’ efforts to pursue growth opportunities through capacity additions to the existing plants, building new plants in the existing markets, along with acquisitions in geographic areas and product lines, will fuel growth.

Price Performance

Over the past six months, Crown Holdings’ shares have gained 54.3%, outperforming the industry’s growth of 45.1%.

Zacks Rank & Other Stocks to Consider

Crown Holding currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Some other top-ranked stocks in the Industrial Products sector are AGCO Corporation AGCO, iRobot Corporation IRBT and SiteOne Landscape Supply, Inc. SITE. While AGCO and iRobot flaunt a Zacks Rank #1, SiteOne Landscape carries a Zacks Rank of 2 (Buy), at present.

AGCO has a projected earnings growth rate of 15.5% for 2020. Over the past six months, the company’s shares have appreciated 81.3%.

iRobot has an estimated earnings growth rate of 18.8% for the ongoing year. Shares of the company have gained 19.2% over the past six months.

SiteOne Landscape has an expected earnings growth rate of 28.6% for 2020. The stock has climbed 51.7% in six months’ time.

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