Ball reports second quarter results

Ball Corporation has reported second quarter 2020 net earnings of $94 million or 28 cents per diluted share, on sales of $2.8 billion, compared to $197 million net earnings attributable to the corporation, or 58 cents per diluted share on sales of $3.0 billion in 2019.

Results for the first six months of 2020 were net earnings of $117 million, or 35 cents per diluted share, on sales of $5.6 billion, compared to $314 million net earnings, or 92 cents per diluted share on sales of $5.8 billion for the first six months of 2019.

Ball’s second quarter and year-to-date 2020 comparable earnings per diluted share were 65 cents and $1.26, respectively, versus second quarter and year-to-date 2019 comparable earnings per diluted share of 64 cents and $1.13, respectively, representing, year-over-year second quarter and year-to-date growth of 2% and 12%, respectively.

Second quarter and year-to-date results reflect the 2019 sale of the company’s Argentine steel aerosol business and Chinese beverage can assets, and new segment reporting for the company’s beverage packaging, EMEA business and other non-reportable results. References to volume data represent units shipped, and year-over-year global beverage volumes referenced exclude the impact of the 2019 sale of the Chinese beverage can assets.

“The resiliency of our businesses and ability to maintain safe, continuous business operations is reflected in our results. Our team is working diligently to satisfy the needs of our global aluminum packaging and aerospace customers amidst a dynamic operating environment. Ball’s financial strength, growth investments, sustainable products and ability to provide for our employees, customers and communities where we operate has never been more important,” said John A Hayes, chairman, president and chief executive officer.

“During the quarter, our company posted 2% comparable earnings per diluted share growth on flat operating earnings with strong aluminum beverage can demand in North America continuing to outpace regional supply offset somewhat by high single-digit volume declines in EMEA, early-quarter sharp volume declines in South America aluminum beverage and an aerospace supply chain issue impacting segment results. Our global beverage, aerosol and aerospace businesses rebounded swiftly following the initial impact of the global pandemic and all are exiting the quarter with momentum for improved performance in the second half and beyond.”

“With demand for our aluminum packaging solutions and aerospace technologies increasing even higher than we anticipated, much needed capacity additions and hiring will benefit our company and customers in the second half of 2020 and beyond. Our previously announced projects are on track and we will continue to deploy additional capital across our existing business portfolio to support new customer contracts. Ball remains well positioned to grow diluted earnings per share, and deliver shareholder returns now and into the future,” Hayes said.

Outlook

“Our company continues to operate from a position of strength. Ample liquidity and cash flow continue to bolster our ability to accelerate growth investments while continuing to return value to shareholders. Given the exciting growth trajectory in our North American beverage business, we foresee 2020 capital expenditures exceeding $900 million and additional EVA-enhancing opportunities in 2021 and beyond,” said Scott C Morrison, senior vice president and chief financial officer.

“We are proud of our colleagues around the world. During the quarter, we faced many challenges on both a human and operational level, and our team came together to execute our global business strategy as effectively and safely as possible. While lingering challenges are likely, our products and operations have proven their resiliency by exiting the second quarter with notable momentum across all of our operations. We currently expect to grow our earnings per diluted share this year while returning capital to our shareholders. Beyond 2020, we look forward to continuing to grow our EVA dollars on an even larger capital base and achieving our long-term diluted earnings per share growth goal of 10 to 15%,” Hayes said.

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