(RTTNews) - Food and beverage can maker Crown Holdings Inc. (CCK: News ), Wednesday said its third quarter profit declined from last year, hurt by a restructuring charge related to plant closures. However, the company's quarterly earnings per share, before certain items, managed to pip analysts' expectations by a penny, helped by improved gross margins and better cost control.

Net income attributable to Crown Holdings was $108 million or $0.67 per share for the third quarter, down from $114 million or $0.70 per share in the prior year quarter.

During the third quarter, the company incurred a restructuring charge of $35 million or $0.22 per share, net of tax, which included the closure of two food can plants and one aerosol can plant in Canada.

The restructuring actions affected 480 employees. The cash cost of the restructuring actions, before anticipated property sale proceeds, is expected to be $33 million with expected full year annual savings of about $25 million.

Net income before certain items grew to $131 million or $0.81 per share from $115 million or $0.70 per share in the year-ago quarter. On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.80 per share for the third quarter. Analysts' estimates typically exclude special items.

Gross profit in the quarter fell to $365 million from $375 million in the prior year quarter. As a percentage of net sales, gross profit improved to 16.0% from 15.8% in the previous year quarter.
Segment income was $270 million, up 1% from $273 million in the third quarter of 2008. Segment income, as a percentage of net sales, improved to 11.8% from 11.5% last year. On a currency and pension neutral basis, segment income grew 14.7% over a year earlier.

Third quarter net sales declined to $2.28 billion from $2.37 billion in the third quarter last year, hurt by a stronger U.S. dollar which reduced reported net sales by $129 million. Eight analysts had a consensus revenue estimate of $2.34 billion for the third quarter.

Net sales from Americas Beverage dropped 7% to $483 million, and sales from European Beverage slipped 6% to $427 million. North America Food sales improved 16% to $313 million, while sales from European Food declined 5.5% to $647 million over a year ago. European Specialty Packaging segment posted sales of $116 million, up 8.7% from the prior year quarter.

Crown Holdings said, "Firming unit volume demand as well as ongoing cost reduction and efficiency improvement programs partially offset increased pension expense of $29 million and unfavorable foreign currency translation of $19 million."

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