News Column

Ball Reports Strong Second Quarter Results

August 4, 2014



ENP Newswire - 04 August 2014

Release date- 01082014 - BROOMFIELD, Colo. - Ball Corporation (NYSE:BLL) today reported second quarter net earnings attributable to the corporation of $153.1 million, or $1.07 per diluted share on sales of $2.3 billion, compared to$95.1 million, or 63 cents per diluted share, on sales of $2.2 billion in the second quarter of 2013.

Results for the first six months of 2014 were net earnings attributable to the corporation of $246.6 million, or $1.72 per diluted share, on sales of $4.3 billion, compared to $167.1 million, or $1.10 per diluted share, on sales of $4.2 billion in the first six months of 2013.

Comparable 2014 earnings per diluted share for the second quarter and year-to-date were $1.13 and $1.94, respectively, versus second quarter and year-to-date 2013 comparable earnings per diluted share of 85 cents and$1.43, respectively.

Details of comparable segment earnings, business consolidation activities and historical segment reporting can be found in the notes to the unaudited consolidated financial statements that accompany this news release.

'Our improved second quarter results were due to improving demand for beverage cans, excellent performance in our global beverage operations and solid program execution in our aerospace business,' said John A. Hayes, chairman, president and chief executive officer.

Metal Beverage Packaging, Americas & Asia

Metal beverage packaging, Americas and Asia, comparable segment operating earnings were $142.0 million in the second quarter on sales of $1.1 billion, compared to $125.7 million on sales of $1.1 billion in 2013. For the first six months, comparable segment operating earnings were $266.9 million on sales of $2.1 billion, compared to $229.7 million on sales of $2.1 billion during the same period in 2013.

Stronger than expected demand for metal beverage packaging in North America aided results during the quarter. In Brazil and China, volumes grew double digits year-over-year due to increasing can penetration in beer packaging. In May, we announced the expansion of our Southeast Asia operations with the construction of a one-line plant in Myanmar, which will start up in mid-2015.

Metal Beverage Packaging, Europe

Metal beverage packaging, Europe, comparable segment results in the quarter were operating earnings of $73.7 million on sales of $558.4 million, compared to $51.8 million on sales of $508.7 million in 2013. Results for the first six months were comparable segment operating earnings of $129.2 million on sales of $1.0 billion, compared to$82.7 million on sales of $911.6 million in 2013.

Mid-single-digit volume growth for beverage cans across Europe continued and our ongoing cost management programs favorably impacted second quarter results. Construction has begun at our existing Oss, Netherlands, facility to increase capacity through the addition of a new line, which will start up in the second quarter of 2015.

Metal Food & Household Products Packaging

Metal food and household products packaging comparable segment results in the quarter were operating earnings of $39.8 million on sales of $367.7 million, compared to $47.5 million on sales of $382.6 million in 2013. Year-to-date results were comparable segment operating earnings of $76.1 million on sales of $708.8 million, compared to$82.2 million on sales of $749.8 million in 2013.

Segment results and volumes were down in the quarter, influenced by low single-digit volume declines for steel containers and manufacturing inefficiencies in the U.S. Stronger demand for aluminum aerosol containers in Europe and Mexico, and improved manufacturing performance in Mexico contributed to results.

Aerospace and Technologies

Aerospace and technologies comparable segment results were operating earnings of $24.8 million on sales of$241.1 million in the quarter, compared to $19.1 million on sales of $226.1 million in 2013. For the first six months, comparable segment operating earnings were $48.9 million on sales of $461.8 million compared to $37.0 million on sales of $457.5 million during the same period last year. Backlog at the end of the quarter was $858 million.

Ongoing excellent program execution and solid contracted backlog contributed to segment results. During the quarter, Ball Aerospace began work on a fixed-price contract for the Stalker long-range, electro-optical laser sensor system (SLREOSS) under a contract to the NATO Seasparrow Project Office.

The Stalker system will significantly enhance the Navy's ability to detect, classify, identify and determine hostile intent of potential threats to its ships. Ball's support to the NATO Seasparrow Project Office spans more than four decades and is the segment's longest continuously running project.

Outlook

'Year-to-date we have returned more than $250 million to shareholders in the form of share repurchases and dividends, and we expect free cash flow to exceed $550 million for 2014,' said Scott C. Morrison, senior vice president and chief financial officer.

'Our second quarter results exceeded our expectations. While we still have a few manufacturing challenges and tough volume comparisons in the second half, we remain confident in our ability to increase EVA dollar generation and achieve our long-term diluted earnings per share growth goal of 10 to 15 percent in 2014,' Hayes said.

About Ball Corporation

Ball Corporation supplies innovative, sustainable packaging solutions for beverage, food and household products customers, as well as aerospace and other technologies and services primarily for the U.S. government. Ball Corporation and its subsidiaries employ 14,500 people worldwide and reported 2013 sales of $8.5 billion.

Forward-Looking Statements

This release contains 'forward-looking' statements concerning future events and financial performance. Words such as 'expects,' 'anticipates,' 'estimates' and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Key risks and uncertainties are summarized in filings with the Securities and Exchange Commission, including Exhibit 99 in our Form 10-K, which are available on our website and at www.sec.gov.

Factors that might affect: a) our packaging segments include product demand fluctuations; availability/cost of raw materials; competitive packaging, pricing and substitution; changes in climate and weather; crop yields; competitive activity; failure to achieve productivity improvements or cost reductions; mandatory deposit or other restrictive packaging laws; changes in major customer or supplier contracts or loss of a major customer or supplier; political instability and sanctions and changes in foreign exchange or tax rates; b) our aerospace segment include funding, authorization, availability and returns of government and commercial contracts and delays, extensions and technical uncertainties affecting segment contracts; c) the company as a whole include those listed plus: changes in senior management; successful or unsuccessful acquisitions and divestitures; regulatory action or issues including tax, environmental, health and workplace safety, including U.S. FDA and other actions or public concerns affecting products filled in our containers, or chemicals or substances used in raw materials or in the manufacturing process; technological developments and innovations; litigation; strikes; labor cost changes; rates of return on assets of the company's defined benefit retirement plans; pension changes; uncertainties surrounding the U.S. government budget, sequestration and debt limit; reduced cash flow; ability to achieve cost-out initiatives; interest rates affecting our debt.

Investor Contact:

Ann T. Scott

Tel: 303-460-3537

Email: ascott@ball.com

Media Contact:

Renee Robinson

Tel: 303-460-2476

Email: rarobins@ball.com


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Source: ENP Newswire


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