Ink World Staff05.11.20
Ball Corporation reported, on a US GAAP basis, first quarter 2020 net earnings attributable to the corporation of $23 million (including net after-tax charges of $179 million, or 54 cents per diluted share for business consolidation, debt refinancing and other non-comparable costs) or 7 cents per diluted share, on sales of $2.8 billion, compared to $117 million net earnings attributable to the corporation, or 34 cents per diluted share (including net after-tax charges of $50 million, or 15 cents per diluted share for business consolidation, debt refinancing and other non-comparable costs), on sales of $2.8 billion in 2019.
Ball's first quarter 2020 comparable net earnings were $202 million, or 61 cents per diluted share versus first quarter 2019 comparable net earnings of $167 million or 49 cents per diluted share.
"First and foremost, we extend our gratitude to our front-line manufacturing teams, our supply chain and our customers for their dedication to working safely and maintaining a reliable supply of packaging, aerospace technologies and services to our customers and consumers. Ball is fortunate to have a strong balance sheet, ample liquidity, a "can-do" culture and a business model that has successfully weathered other turbulent economic times over our 140-year history," said John A. Hayes, chairman, president and chief executive officer.
"During the quarter, our company posted 24% comparable earnings per diluted share growth and 12% operating earnings growth across our corporation. Our global beverage business' comparable operating earnings grew 5% despite meaningful volume declines in South America during the second half of March, our aluminum aerosol business grew operating earnings 5%, and our aerospace business earnings increased 33%. With customer and consumer demand for aluminum packaging solutions continuing to outpace existing supply in North America, and our aerospace business supporting critical missions for the U.S. government, our previously announced growth projects are largely on track to add much needed capacity throughout 2020 and beyond."
"Our global business is resilient and, though certain regions may be impacted more significantly during the second quarter due to the socioeconomic dynamics associated with the pandemic, the long-term demand for our products continues to be strong and our strategy remains intact. We are focused on working safely, improving our operational excellence, amplifying the sustainability benefits of aluminum packaging, and executing on previously announced growth projects. Ball remains well positioned to grow diluted earnings per share, and deliver shareholder returns now and into the future."
Beverage Packaging, North and Central America, comparable segment operating earnings for first quarter 2020 were $146 million on sales of $1.2 billion compared to $118 million on sales of $1.1 billion during the same period in 2019.
Beverage Packaging, EMEA, comparable segment operating earnings for the first quarter 2020 were $68 million on sales of $669 million compared to $74 million on sales of $684 million during the same period in 2019. Beginning this quarter, current and historical quarterly results for the company's existing facilities in Cairo, Egypt, and Manisa, Turkey, have been consolidated into the segment.
Beverage Packaging, South America, comparable segment operating earnings for the first quarter 2020, were $63 million on sales of $405 million compared to $68 million on sales of $441 million during the same period in 2019.
"The company continues to operate with a high-functioning global supply chain, well-capitalized operations and ample committed liquidity composed of $800 million in cash on hand, $550 million in committed credit facilities as well as an additional $500 million in uncommitted lines of credit. Looking forward, we expect to generate free cash flow in the range of $500 million in 2020, and will have the opportunity to accelerate the return of value to shareholders later in 2020 and beyond," said Scott C. Morrison, SVP and CFO.
Ball's first quarter 2020 comparable net earnings were $202 million, or 61 cents per diluted share versus first quarter 2019 comparable net earnings of $167 million or 49 cents per diluted share.
"First and foremost, we extend our gratitude to our front-line manufacturing teams, our supply chain and our customers for their dedication to working safely and maintaining a reliable supply of packaging, aerospace technologies and services to our customers and consumers. Ball is fortunate to have a strong balance sheet, ample liquidity, a "can-do" culture and a business model that has successfully weathered other turbulent economic times over our 140-year history," said John A. Hayes, chairman, president and chief executive officer.
"During the quarter, our company posted 24% comparable earnings per diluted share growth and 12% operating earnings growth across our corporation. Our global beverage business' comparable operating earnings grew 5% despite meaningful volume declines in South America during the second half of March, our aluminum aerosol business grew operating earnings 5%, and our aerospace business earnings increased 33%. With customer and consumer demand for aluminum packaging solutions continuing to outpace existing supply in North America, and our aerospace business supporting critical missions for the U.S. government, our previously announced growth projects are largely on track to add much needed capacity throughout 2020 and beyond."
"Our global business is resilient and, though certain regions may be impacted more significantly during the second quarter due to the socioeconomic dynamics associated with the pandemic, the long-term demand for our products continues to be strong and our strategy remains intact. We are focused on working safely, improving our operational excellence, amplifying the sustainability benefits of aluminum packaging, and executing on previously announced growth projects. Ball remains well positioned to grow diluted earnings per share, and deliver shareholder returns now and into the future."
Beverage Packaging, North and Central America, comparable segment operating earnings for first quarter 2020 were $146 million on sales of $1.2 billion compared to $118 million on sales of $1.1 billion during the same period in 2019.
Beverage Packaging, EMEA, comparable segment operating earnings for the first quarter 2020 were $68 million on sales of $669 million compared to $74 million on sales of $684 million during the same period in 2019. Beginning this quarter, current and historical quarterly results for the company's existing facilities in Cairo, Egypt, and Manisa, Turkey, have been consolidated into the segment.
Beverage Packaging, South America, comparable segment operating earnings for the first quarter 2020, were $63 million on sales of $405 million compared to $68 million on sales of $441 million during the same period in 2019.
"The company continues to operate with a high-functioning global supply chain, well-capitalized operations and ample committed liquidity composed of $800 million in cash on hand, $550 million in committed credit facilities as well as an additional $500 million in uncommitted lines of credit. Looking forward, we expect to generate free cash flow in the range of $500 million in 2020, and will have the opportunity to accelerate the return of value to shareholders later in 2020 and beyond," said Scott C. Morrison, SVP and CFO.