Ball Reports 1Q 2019 Results

Ball Corporation reported its first quarter 2019 results, with sales at $2.5 billion led by Beverage Packaging, North and Central America, which had segment operating earnings of $118 million on sales of $1.1 billion.
 
Beverage Packaging, South America, comparable segment operating earnings for the first quarter of 2019 were $68 million on sales of $441 million, compared to $98 million on sales of $459 million during the same period in 2018.
 
Beverage Packaging, Europe, comparable segment operating earnings for the first quarter of 2019 were $64 million on sales of $638 million, compared to $60 million on sales of $609 million in the first quarter 2018.
 
Aerospace comparable segment operating earnings for the first quarter 2019 were $30 million on sales of $328 million, compared to $25 million on sales of $264 million in the first quarter 2018.
 
Ball Corporation reported, on a US GAAP basis, first quarter 2019 net earnings attributable to the corporation of $117 million (including the net effect of after-tax charges of $50 million, or 15 cents per diluted share for business consolidation, debt refinancing and other non-comparable costs) or 34 cents per diluted share, on sales of $2.8 billion, compared to $125 million net earnings attributable to the corporation, or 35 cents per diluted share (including the net effect of after-tax charges of $55 million, or 15 cents per diluted share for the US Tax Cuts and Jobs Act, business consolidation and other non-comparable costs), on sales of $2.8 billion in 2018.
 
Ball’s first-quarter 2019 comparable net earnings were $167 million, or 49 cents per diluted share, compared to $180 million, or 50 cents per diluted share in 2018.
 
 “Growth trends in our packaging and aerospace businesses continue to gain momentum. During the quarter, higher than expected global can demand driven by customers’ shifting mix and new product launches to aluminum packaging helped drive stronger revenue growth. In North America, higher costs related to surplus US aluminum scrap and higher than anticipated plant start-up costs affected first quarter results. We anticipate that these near-term cost pressures will moderate in the second half when new lines complete learning curves and more favorable contractual terms become effective, as well as in 2020 and beyond,” said John A. Hayes, chairman, president and chief executive officer.
 
“Beverage can growth appears to be accelerating to levels that are stronger and more sustainable than in the past 25 plus years. We welcome the opportunity to support growth for infinitely recyclable aluminum packaging from 11 new beverage can lines and two new extruded aluminum aerosol lines installed across our global plant network since the beginning of 2018,” added Hayes.
 
“The company’s financial position is strong, our debt portfolio is well positioned with low, fixed interest rates and our recently amended and extended credit facility provides ample financial flexibility to invest in disciplined growth and return value to shareholders. Given the strength of our cash flow, leverage at optimal levels, last week’s dividend increase and our existing repurchase authorization, the company plans to return in excess of $1 billion to shareholders in 2019 and beyond,” said Scott C. Morrison, senior vice president and chief financial officer.
 
“Our focus on commercializing sustainable aluminum packaging solutions across our customers’ product categories and leveraging our aerospace capabilities with relevant government customers is translating into additional growth. While we still have much work to do to achieve our 2019 financial goals originally laid out in mid-2016, our longer term prospects continue to be bright, and we continue to drive toward our 2019 goals of $2 billion in comparable EBITDA, in excess of $1 billion in free cash flow and exceeding our long-term 10% to 15% diluted earnings per share growth goal this year,” Hayes said.