Ball reports strong full-year results
Ball Corporation has reported an increase in sales in its results for 2010 – thanks in part to double-digit volume growth in China and Brazil.
The company’s net earnings from continuing operations were $542.9 million, on sales of $7.6 billion, compared to $390.1 million, on sales of $6.7 billion in 2009. On a comparable basis, Ball’s full-year 2010 results were net earnings of $433.0 million, compared to $372.4 million in 2009.
Fourth quarter 2010 net earnings from continuing operations were $93.7 million, on sales of $2 billion. On a comparable basis, Ball’s fourth quarter results were net earnings of $94.4 million, compared to $79.1 million in the fourth quarter of 2009.
The fourth quarter and year-to-date results include a tax benefit of $11.8 million related to the refinancing in December of the company’s bank facilities.
“Excellent operating performance, the consolidation of our Brazilian joint venture into our financial results, continued growth in emerging markets and strong aerospace program performance all contributed to the significant improvement in results,” comments John Hayes (pictured), who took over as the company’s president and chief executive officer at the start of January.
Metal beverage packaging, Americas and Asia, comparable segment operating earnings were $418.3 million in 2010 on sales of $3.8 billion, compared to $296.0 million in 2009 on sales of $2.9 billion. For the fourth quarter, comparable earnings were $117 million on sales of $1 billion, compared to $72.1 million on sales of $812.9 million in 2009.
The consolidation of Ball’s Brazilian joint venture into the company’s financial results, double-digit volume growth in China and Brazil and excellent operating performance drove improved results.
Ball announced on Tuesday the planned closure of its Torrance, California, beverage can plant as part of a reduction of 12oz can capacity. The company also announced it will expand specialty beverage can production in its Fort Worth, Texas, plant.
In Europe, Ball’s metal beverage packaging results were slightly down compared to 2009.
Comparable segment results in 2010 saw operating earnings of $212.9 million on sales of $1.7 billion, compared to $214.8 million on sales of $1.7 billion in 2009. For the fourth quarter, comparable operating earnings in 2010 were $42.3 million on sales of $408.5 million, compared to $50.3 million on sales of $427.1 million in the fourth quarter of 2009.
Single-digit volume growth partially offset the negative effects of a lower year-over-year Euro exchange rate, unfavourable weather conditions in fourth quarter and lower exports. The German beverage can market continued its steady growth as more retail outlets stocked cans.
Metal food and household products packaging, Americas, comparable segment results for 2010 saw operating earnings of $129.1 million on sales of $1.4 billion, compared to $130.8 million in 2009 on sales of $1.4 billion.
“During 2010 we extended the company’s debt profile and achieved favourable terms on our borrowing facility, resulting in a competitive capital structure that provides greater flexibility to grow our business and return capital to our shareholders,” says Scott Morrison, senior vice president and chief financial officer. “We expect to generate at least $400 million in free cash flow in 2011 after investing in key projects to respond to organic and emerging market growth opportunities, and the majority of our free cash flow will be used to repurchase stock.”
“Ball is well positioned for continued growth in 2011, and we expect the company’s full-year 2011 earnings to exceed those of 2010,” concluded Hayes.
