Ball Reports 2016 Results

Ball Corporation reported its 2016 full year results, including $9.1 billion in sales for the year, with increases largely driven by the acquisition of Rexam. Ball Corporation reported, on a US GAAP basis, full-year 2016 net earnings attributable to the corporation of $224 million (including the net effect of after-tax charges of $339 million, or $2.10 per diluted share for business consolidation, debt refinancing and other non-comparable costs) or $1.39 per diluted share, on sales of $9.1 billion, compared to $281 million of net earnings attributable to the corporation, or $1.99 cents per diluted share (including the net effect of after-tax charges of $209 million, or $1.49 cents per diluted share for business consolidation costs, economic hedging losses, and debt refinancing and other costs), on sales of $8.0 billion in 2015.
 
Ball’s comparable full-year 2016 results were net earnings of $563 million, or $3.49 per diluted share, compared to $490 million, or $3.48 per diluted share in 2015.
 
Fourth quarter 2016 net earnings attributable to Ball Corporation were $14 million, or 8 cents per diluted share, on sales of $2.5 billion, compared to $55 million, or 39 cents per diluted share, on sales of $1.8 billion, in the fourth quarter of 2015.
 
On a comparable basis, Ball’s fourth quarter 2016 results were net earnings of $155 million, or 87 cents per diluted share, compared to $113 million, or 80 cents per diluted share in the fourth quarter of 2015. Earnings per share figures for 2016 reflect the impact of shares issued for the acquisitions of Rexam and Latapack-Ball.
 
During the second half of 2016, Ball realigned its operating segments as a result of the Rexam transaction.
 
“Following a very complex and rewarding year, our 2016 comparable results were in line with our expectations. We had previously discussed that the momentum in our existing business combined with the addition of our acquisition would generate sequential momentum as we moved into 2017. This momentum continues to build in all of our businesses and our packaging products are excellently positioned to support our customers’ plans to market sustainable packaging to all generations for any occasion,” said John A. Hayes, chairman, president and CEO. “We once again reaffirm our financial goals for 2017 through 2019 and expect $150 million of transaction-related synergies to be recognized in 2017 with at least another $150 million expected by the end of 2019.”
 
Beverage packaging, North and Central America, comparable segment operating earnings for full-year 2016 were $469 million on sales of $3.6 billion, compared to $402 million on sales of $3.2 billion in 2015.
 
Full-year and fourth quarter 2016 segment revenues and operating earnings benefitted from the additional operations from the Rexam acquisition and continued growth in beer, specialty and certain non-alcoholic categories in the US and Mexico, as well as solid manufacturing performance across the segment.
 
Beverage packaging, South America, comparable segment operating earnings for full-year 2016 were $185 million on sales of $1.0 billion, compared to $80 million on sales of $591 million in 2015.
 
Beverage packaging, Europe, comparable segment operating earnings for the full-year 2016 were $217 million on sales of $2.0 billion, compared to $192 million on sales of $1.7 billion in 2015.
 
Food and aerosol packaging comparable segment operating earnings for the full-year 2016 were $109 million on sales of $1.2 billion, compared to $108 million on sales of $1.3 billion in 2015.
 
Aerospace comparable segment operating earnings for the full-year 2016 were $88 million on sales of $818 million, compared to $82 million on sales of $810 million in 2015. Contracted backlog ended the year at $1.4 billion
 
“Our year-end 2016 net debt of $6.9 billion was slightly better than our forecast of $7.0 billion. We continue to expect 2017 free cash flow to be in the range of $750 million to $850 million after capital spending of approximately $500 million,” said Scott C. Morrison, SVP and CFO.
 
“The company is on course to deliver improved free cash flow, EVA dollar growth and comparable diluted earnings per share growth of at least 20% in 2017. We are fully executing upon our post-acquisition plans with the completed closure of the former Rexam headquarters, the closure of the Charlotte, NC, regional support center slated for mid-2017, and additional transformative process and footprint work slated for the second half 2017 and beyond,” Hayes said.