Ball Reports Improved 2019 Results

Ball Corporation reported, on a US GAAP basis, full-year 2019 net earnings attributable to the corporation of $566 million (including net after-tax charges of $295 million, or 87 cents per diluted share for business consolidation and other non-comparable costs) or $1.66 per diluted share, on sales of $11.5 billion, compared to $454 million net earnings attributable to the corporation, or $1.29 per diluted share (including net after-tax charges of $321 million, or 91 cents per diluted share for business consolidation and other non-comparable costs), on sales of $11.6 billion in 2018.

Ball’s full-year 2019 comparable net earnings were $861 million, or $2.53 per diluted share, compared to $775 million, or $2.20 per diluted share in 2018.

Fourth-quarter 2019 net earnings attributable to the corporation, on a US GAAP basis, were $160 million, or 48 cents per diluted share, on sales of $2.7 billion compared to $151 million, or 44 cents per diluted share, on sales of $2.8 billion in the fourth quarter of 2018. Ball’s fourth-quarter 2019 comparable net earnings were $238 million, or 71 cents per diluted share versus fourth quarter 2018 comparable net earnings of $191 million or 55 cents per diluted share.

Results reflect the 2019 sale of the company’s Argentine steel aerosol business and Chinese beverage can assets and the 2018 sale of the company’s US steel food and steel aerosol business.

“We finished 2019 on a strong note, with fourth-quarter comparable operating earnings increasing 14%, comparable earnings per diluted share increasing 29% and stronger than expected cash flow generation being driven by working capital improvements across most of our businesses. Over the past year, our global beverage volumes increased 5%, our aerospace contracted backlog in-creased 14% and we were able to sell underperforming assets. With global customer and consumer demand for aluminum packaging solutions continuing to outpace existing supply, our previously announced aluminum beverage can and cup projects will add at least 8 billion units of capacity by the end of 2021,” said John A. Hayes, chairman, president and CEO.

“In 2019, we met our goals of generating nearly $1 billion in free cash flow and returning in excess of $1 billion to shareholders, in addition to investing $600 million to expand our capabilities and initiate multi-year plans to increase our global beverage can production. The company continues to operate from a position of strength with earnings growth and cash flow to support disciplined growth investments and consistent return of value to shareholders in the range of $1 billion in 2020,” said Scott C. Morrison, SVP and CFO.

“We are building our future today. Managing the growth in our existing businesses, being the sustainability leader, enabling the go-to-market strategy for our new aluminum cups business, and executing our disciplined capital allocation strategy is an exciting way to embark on 2020 and beyond. We look forward to delivering long-term diluted earnings per share growth of at least 10 to 15%, increasing EVA dollars generated on a growing invested capital base and returning significant value to shareholders,” Hayes said.