Ball Reports Increased 1Q 2022 Results

Ball Corporation reported, on a US GAAP basis, first quarter 2022 net earnings attributable to the corporation of $446 million (including a net after-tax gain of $194 million, or 60 cents per diluted share for business consolidation and other non-comparable items, including the sale of Ball’s former equity method investment in Metalpack) or $1.37 per diluted share, on sales of $3.7 billion, compared to $200 million net earnings attributable to the corporation, or 60 cents per diluted share (including net after-tax charges of $40 million, or 12 cents per diluted share for business consolidation and other non-comparable items) on sales of $3.1 billion in 2021.

Ball’s first quarter 2022 comparable net earnings were $252 million, or 77 cents per diluted share compared to $240 million, or 72 cents per diluted share in 2021.

“We delivered strong first quarter results amid significant geopolitical and economic conditions across multiple regions where we operate. Comparable diluted earnings per share and comparable operating earnings increased 7% and 6%, respectively. Our global team executed at a high level to navigate persistent supply chain disruptions and inflation while also commissioning capital projects on time and on budget to serve growing customer demand across our global packaging and aerospace businesses,” said Daniel W. Fisher, president and CEO.

“We continue to be deeply troubled by the ongoing war in Ukraine and our focus remains on our employees’ safety and well-being. Through our global employee giving and assistance programs, The Ball Foundation and employee volunteerism, we will continue to support each other and those in need,” Fisher said.

Beverage Packaging, North and Central America, comparable segment operating earnings for the first quarter 2022 were $174 million on sales of $1.6 billion compared to $140 million on sales of $1.3 billion during the same period in 2021. Year-over-year sales reflect higher shipments, the contractual pass through of higher aluminum costs and improved price/mix.

Segment specialty can mix increased to 38% to support customers’ demand for sustainable aluminum beverage packaging solutions to enable new brands, retail price points and delivery channels.

Beverage Packaging, EMEA, comparable segment operating earnings for first quarter 2022 were $100 million on sales of $942 million compared to $100 million on sales of $796 million during the same period in 2021. Year-over-year sales reflect higher shipments and the contractual pass through of higher aluminum costs offset by unfavorable foreign exchange translation.

During the quarter and as a result of the war in Ukraine, the company announced its intention to suspend future investments in Russia and pursue a sale of its Russian business composed of three manufacturing facilities.

Beverage packaging, South America, comparable segment operating earnings for first quarter 2022 were $78 million on sales of $494 million compared to $93 million on sales of $487 million in 2021. Year-over-year first quarter sales reflect the contractual pass through of higher aluminum costs, price/mix and lower shipments.

“The company is well-positioned for near-term and long-term growth, cost/price recovery and accelerating return of value to shareholders despite our recent decision to leave Russia. Over our 142-year history, we have successfully navigated economic and geopolitical volatility on many occasions. Our company’s resiliency, financial strength and recession resistant business portfolio continues to provide both stability and sustainable growth prospects for our stakeholders,” said Scott C. Morrison, EVP and CFO.

“Ball’s brightest days are ahead,” added Fisher. “We will continue to support our customers, consumers and communities with truly circular aluminum packaging products as well as aerospace technologies and environmental intelligence to inform, preserve and protect our planet. Through our ability to offset inflationary costs over time, achieve higher returns on capital deployed, support continued mix shift to sustainable aluminum packaging and serve growing demand for our critical aerospace technologies and services, we look forward to achieving our long-term diluted earnings per share growth goal over time and returning even more value to shareholders.”