Crown, Cork & Seal

12 Pages 3073 Words

num was lighter. It had higher and more consistent quality. It was economic to recycle, it was taste-friendly and it had qualities conducive to lithography. Let’s briefly look at the 3 major suppliers of aluminum and their financials:
Company Rank and Sales Net Profit Margin EPS Debt to Income
Alcan World’s largest producer with 9.8B in sales 10.9% $3.85 $1.28
Alcoa World’s largest maker of primary aluminum with sales of 8.5B 8.8% $9.74 $1.77
Reynolds Metals Second largest U.S. aluminum producer with sales of 5.6B. Only aluminum company in the U.S. that produced cans 8.7% $9.01 $2.67

Aluminum suppliers could set the price of aluminum because there aren’t that many competitors, the demand is great, and it does not seem like there are too many threats of substitutes yet. Nonetheless, aluminum prices increased by about 15% in 1988. Prices were limited; however, due to the threat of possible substitutes of steel.

In analyzing the industry trends, the case listed five trends that were occurring in the metal container indust...