Ball Corporation reports strong Q3 2020 results
Ball Corporation has reported strong third-quarter results.
The firm reported, on a U.S. GAAP basis, its Q3 2020 net earnings stood at $241 million (€203 million), or $0.72 (€0.60) per diluted share, on sales of $3.1 billion (€2.61 billion), compared to $92 million (€77.7 million) net earnings or $0.27 (€0.22) per diluted share on sales of $3 billion (€2.53 billion) in 2019.
Ball Corp’s Q3 year-to-date results reflect the 2019 sale of the firm’s Argentine steel aerosol business and Chinese beverage can assets, and new segment reporting for the company’s beverage packaging, EMEA business, and other ‘non-reportable’ results.
The Q3 results in ‘non-reportable’ reflect higher year-over-year undistributed corporate expenses, the impact of the 2019 sale of the Chinese beverage can assets and Argentine steel aerosol business, lower operating results in the remaining non-reportable beverage and aluminium aerosol businesses, and start-up costs in the recently-launched aluminium cup business.
The results for Ball Corp’s global aluminium aerosol business and beverage can manufacturing facilities in India, Saudi Arabia, and Myanmar and investments in the company’s new aluminium cup business continue to be reported as ‘non-reportable’ segments.
During Q3, the firm’s global aluminium aerosol volumes declined in the ‘low-teens’, with growth in India for sanitising sprays offset by double-digit volume declines for personal care products in North America and Europe. The company also completed the acquisition of an aluminium aerosol manufacturing facility in Brazil.
“Our team continues to operate safely while responding to significant growth across our businesses,” said John A. Hayes, chairman, president and CEO of Ball Corp. “Capital investments are being executed to support sustained growth for our global aluminium packaging portfolio and aerospace technologies.
“Our company is well-positioned in the current environment, and our focus remains on our employees’ safety and our customers’ success, as well as the efficient and effective start-up of our various capital projects to deliver significant value to our shareholders.
“During the quarter, our company posted 27% comparable earnings per diluted share growth on 9% global beverage volume growth and 14% aerospace contracted backlog growth.
“In addition, we recently completed our aluminium aerosol acquisition in Brazil, announced new beverage can manufacturing in Pittston, Pennsylvania, as well as Frutal, Brazil, and commenced production at our new aluminium cup manufacturing facility in Rome, Georgia.
“With demand continuing to increase for our sustainable aluminium packaging solutions and critical aerospace technologies, Ball remains well-positioned to invest in EVA-enhancing capital projects, grow diluted earnings per share, increase cash from operations, and deliver shareholder returns now and into the future.”
Discussing Ball Corp’s ‘Outlook’, Scott C. Morrison, senior vice-president and chief financial officer, said: “Our company generates significant cash from operations, and we have the flexibility and opportunity to allocate significant capital to organic growth investments while continuing to return value to shareholders.
“We continue to foresee 2020 capital expenditures exceeding $900 million (€760 million), and given additional EVA-enhancing opportunities supported by contracted volumes and backlog, growth investments are expected to be in excess of $1 billion (€844 million) in 2021 and beyond.”
The firm reported, on a U.S. GAAP basis, its Q3 2020 net earnings stood at $241 million (€203 million), or $0.72 (€0.60) per diluted share, on sales of $3.1 billion (€2.61 billion), compared to $92 million (€77.7 million) net earnings or $0.27 (€0.22) per diluted share on sales of $3 billion (€2.53 billion) in 2019.
Ball Corp’s Q3 year-to-date results reflect the 2019 sale of the firm’s Argentine steel aerosol business and Chinese beverage can assets, and new segment reporting for the company’s beverage packaging, EMEA business, and other ‘non-reportable’ results.
The Q3 results in ‘non-reportable’ reflect higher year-over-year undistributed corporate expenses, the impact of the 2019 sale of the Chinese beverage can assets and Argentine steel aerosol business, lower operating results in the remaining non-reportable beverage and aluminium aerosol businesses, and start-up costs in the recently-launched aluminium cup business.
The results for Ball Corp’s global aluminium aerosol business and beverage can manufacturing facilities in India, Saudi Arabia, and Myanmar and investments in the company’s new aluminium cup business continue to be reported as ‘non-reportable’ segments.
During Q3, the firm’s global aluminium aerosol volumes declined in the ‘low-teens’, with growth in India for sanitising sprays offset by double-digit volume declines for personal care products in North America and Europe. The company also completed the acquisition of an aluminium aerosol manufacturing facility in Brazil.
“Our team continues to operate safely while responding to significant growth across our businesses,” said John A. Hayes, chairman, president and CEO of Ball Corp. “Capital investments are being executed to support sustained growth for our global aluminium packaging portfolio and aerospace technologies.
“Our company is well-positioned in the current environment, and our focus remains on our employees’ safety and our customers’ success, as well as the efficient and effective start-up of our various capital projects to deliver significant value to our shareholders.
“During the quarter, our company posted 27% comparable earnings per diluted share growth on 9% global beverage volume growth and 14% aerospace contracted backlog growth.
“In addition, we recently completed our aluminium aerosol acquisition in Brazil, announced new beverage can manufacturing in Pittston, Pennsylvania, as well as Frutal, Brazil, and commenced production at our new aluminium cup manufacturing facility in Rome, Georgia.
“With demand continuing to increase for our sustainable aluminium packaging solutions and critical aerospace technologies, Ball remains well-positioned to invest in EVA-enhancing capital projects, grow diluted earnings per share, increase cash from operations, and deliver shareholder returns now and into the future.”
Discussing Ball Corp’s ‘Outlook’, Scott C. Morrison, senior vice-president and chief financial officer, said: “Our company generates significant cash from operations, and we have the flexibility and opportunity to allocate significant capital to organic growth investments while continuing to return value to shareholders.
“We continue to foresee 2020 capital expenditures exceeding $900 million (€760 million), and given additional EVA-enhancing opportunities supported by contracted volumes and backlog, growth investments are expected to be in excess of $1 billion (€844 million) in 2021 and beyond.”
