Full-Year Guidance Confidence
Q: Can you elaborate on your confidence in full-year guidance?
A: Management is very confident in their full-year guidance, despite strong Q1 results. They see it as too early to change guidance but expect a significant uplift in the second half, especially in Europe. First quarter EBITDA is trending higher than initial expectations, but they prefer to wait and see how the year progresses before making adjustments.

North American Can Growth
Q: What's your outlook for North American beverage can growth?
A: Crown's shipments were up 7% in North America in Q1, outperforming a flat market. They reaffirm a full-year growth target of 4% to 5%, and expect their market share in 2025 to be at least slightly higher than today. They believe that even with modest market growth of 0% to 2%, their own growth initiatives and customer relationships will drive above-market performance.

CapEx and Capacity Utilization
Q: What's the plan for CapEx and capacity utilization ahead?
A: Crown plans to limit CapEx to no more than $500 million annually in 2024 and 2025. North American facilities are highly utilized at mid-90%, while there is some open capacity in Europe and Brazil. They are well-positioned to handle expected growth without significant new investment, unless a major market shift occurs.

Customer Promotion Impact
Q: How do customer strategies affect your volume growth?
A: Customers are favoring a value-over-volume approach, which may limit overall market growth to 0% to 2%. However, Crown remains confident in achieving 4% to 5% growth due to strong customer relationships and expects that if customers increase promotions, market growth could reach 2% to 4% in the future.

Operational Efficiency Gains
Q: What efficiency improvements are you achieving operationally?
A: Crown is focusing on productivity improvements and reducing spoilage, especially in new facilities where learning curves exist. They aim to produce more good cans with less waste, enhancing margins across all businesses globally.

Transit Business Expectations
Q: What's the outlook for the transit business this year?
A: The transit business faced slight declines due to lower trucking volumes. Crown expects similar performance in Q2, with potential improvement in Q4 as trucking firms anticipate stronger demand. While there are opportunities for growth through acquisitions, current focus is on debt reduction and shareholder returns.

Leverage and Buybacks
Q: What's your plan regarding leverage and share buybacks?
A: Crown aims to reach the low end of their target leverage range by year-end. Given higher interest rates and economic uncertainties, they are considering reducing leverage further. They also contemplate share buybacks and believe they can achieve both debt reduction and shareholder returns due to strong cash flow.

Deposit Laws Impact
Q: How will new deposit laws affect your business?
A: Crown supports increased recycling but is cautious about new deposit laws that might unfairly target cans while subsidizing less recyclable materials. They advocate for fair regulations that don't penalize cans, which already have high recycling rates.

Asia-Pacific Adjustments
Q: Why did shipments decline in Asia-Pacific region?
A: Crown's shipments in Asia-Pacific were down 8%, while the market grew 9-10%, due to capacity reductions. They removed five lines (about 12-13% of capacity) to realign with demand, improve cost structure, and enhance future profitability. Expected savings are $4-5 million per quarter.

Mexican Glass Business
Q: What's the outlook for the Mexican glass business?
A: The Mexican glass business is returning to normal levels after exceptional performance last year. It remains profitable with EBITDA margins in high teens to low 20%. Crown considers it core due to important customer relationships and continues to evaluate its portfolio under the right conditions.

European Performance Outlook
Q: How will Europe contribute to second-half earnings?
A: Crown expects a significant uplift in Europe during the second half, particularly due to the absence of last year's Q4 destocking effect. Traditionally, the third quarter is stronger, and they anticipate a large step-up, improving overall earnings.

Non-Bevcan Businesses Performance
Q: How did non-beverage businesses perform in Q1?
A: Non-beverage businesses like aerosol cans and can-making equipment performed in line with expectations, albeit with lower profits due to reduced demand for new equipment. North American food shipments were softer than expected but showed strength in April, indicating potential improvement.

Minority Interest and EBITDA
Q: Has your view on full-year EBITDA changed?
A: Crown increased minority interest expense guidance to $130-$140 million due to better results in areas with minority partners. First quarter EBITDA is trending higher than initial expectations, but they prefer to monitor performance before revising full-year EBITDA guidance.

Can-Making Equipment Outlook
Q: How is the can-making equipment business performing?
A: The can-making equipment business is down by $35-$40 million as they focus more on service and tools rather than new equipment shipments. While less profitable than before, it remains a positive contributor to overall results.

Facility Fire Impact
Q: Was the facility fire impact contained to Q1?
A: Yes, the financial impact from the facility fire was contained within the first quarter, with no lingering effects expected in Q2.

European Demand Drivers
Q: What events are expected to boost European demand?
A: The European Cup and the Olympics, both held in Europe in the same time zone, are anticipated to drive beverage can demand during a seven to eight-week period from mid-June to mid-August.

Regional Utilization Rates
Q: What are the current utilization rates by region?
A: North America is at mid-90% utilization, Asia-Pacific at low 80%, Europe and Brazil between mid-80% and high 80%, indicating strong capacity usage across major markets.

Transit Business Growth
Q: Are there opportunities to grow the transit business?
A: There are opportunities for bolt-on acquisitions in the transit business, including adjacent sectors with EBITDA margins of 20-25%, but current investor preferences lean towards debt reduction and share repurchases over expansion.

Customer and Market Share
Q: How are customer shifts affecting market share?
A: Crown is confident its market share will be at least stable, if not higher, through 2025 and 2026. While business movement occurs, especially in Asia, they aren't overly concerned, thanks to strong positions in key markets like North America, Brazil, and Europe.

Brazil and Europe Outlook
Q: What's the outlook for Brazil and European markets?
A: In Brazil, the market appears to be recovering against glass packaging, with an expected uplift. In Europe, after significant destocking last year, restocking is boosting demand, and major events are expected to further improve performance.

Industry Leverage Comparison
Q: How does your leverage target compare to peers?
A: Crown acknowledges competitors are targeting lower leverage ratios, some aiming for mid to low 2s. While currently at the lower end of their target range, they are considering reducing leverage further in response to economic conditions and industry practices.