Ball Reports Strong 2014 Results

Ball Corporation reported full-year 2014 net earnings attributable to the corporation of $470.0 million (including after tax charges of $82.8 million, or 58 cents per diluted share for business consolidation costs, debt refinancing costs and other activities), or $3.30 per diluted share, on sales of $8.6 billion, compared to $406.8 million, or $2.73 per diluted share, on sales of $8.5 billion in 2013. Ball’s full-year 2014 results were comparable net earnings of $552.8 million, or $3.88 per diluted share, compared to $489.6 million, or $3.28 per diluted share, in 2013.
 
“2014 was a record year for the company in terms of comparable earnings per share and free cash flow. Our global beverage can business performed very well in the year, and our aerospace business also achieved record results through solid program execution and the benefit of several launches,” said John A. Hayes, chairman, president and CEO. “We continue to actively manage our asset base and work with our aerospace and packaging customers to meet their future needs.”
 
Fourth quarter 2014 net earnings attributable to Ball Corporation were $76.0 million, or 54 cents per diluted share, on sales of $2.0 billion, compared to $124.5 million, or 85 cents per diluted share, on sales of $2.0 billion, in the fourth quarter of 2013. On a comparable basis, Ball’s fourth quarter results were net earnings of $118.0 million, or 84 cents per diluted share, compared to $126.8 million, or 86 cents per diluted share in the fourth quarter of 2013.
 
Metal beverage packaging, Americas and Asia, comparable segment operating earnings were $534.8 million on sales of $4.2 billion for full-year 2014, compared to $512.4 million on sales of $4.2 billion in 2013. For the fourth quarter, comparable earnings were $134.0 million on sales of $1.0 billion, compared to $147.3 million on sales of $1.0 billion in 2013.
 
Comparable segment results for the full-year were up versus 2013 due to continued strong demand for specialty packaging in the Americas and exceptional operating performance in North America.
 
Metal beverage packaging, Europe, comparable segment results in 2014 were operating earnings of $222.9 million on sales of $1.9 billion, compared to $182.6 million on sales of $1.8 billion in 2013. For the fourth quarter, comparable operating earnings in 2014 were $29.9 million on sales of $398.5 million, compared to $39.4 million on sales of $427.8 million in the fourth quarter of 2013.
 
Full-year operating earnings were affected favorably by improved cost management and growth of specialty cans across Europe.
 
Metal food and household products packaging comparable segment results for 2014 were operating earnings of $154.2 million on sales of $1.5 billion, compared to $177.4 million in 2013 on sales of $1.6 billion. For the fourth quarter of 2014, comparable segment results were operating earnings of $35.1 million on sales of $345.0 million, compared to $36.8 million on sales of $345.2 million in the same period of 2013.
 
Full-year 2014 results were lower due to mid-single-digit volume declines for steel food cans and previously reported service center manufacturing inefficiencies in the U.S., offset by continued strong performance in global aerosol packaging.
 
Aerospace and technologies comparable segment results were operating earnings of $93.6 million on sales of $934.8 million in 2014, compared to $80.1 million on sales of $897.1 million in 2013. For the fourth quarter, earnings were $23.5 million on sales of $251.3 million, compared to $25.1 million on sales of $222.1 million in the fourth quarter of 2013. Contracted backlog at the close of the year was $765 million.
 
Full-year comparable operating earnings were up significantly due to exceptional program performance across the business and key product deliveries and launches during 2014.
 
“We achieved record free cash flow in excess of $620 million in 2014 and anticipate full-year 2015 free cash flow to be in roughly the same range,” said Scott C. Morrison, SVP and CFO.
 
“Given the strength of our 2014 financial performance, we’ve created a challenging earnings comparison for 2015, especially in the first half when we are ramping up multiple global capital projects and awaiting the award of additional aerospace contracts,” Hayes said. “We expect the second half to be stronger than the first half and it is unlikely we will attain our long-term 10-15% earnings per diluted share growth goal in 2015. We will continue to generate a significant amount of free cash flow, execute our capital allocation strategy to foster future EVA dollar growth and return value for our shareholders in 2015 and beyond.”