Aerosol cans help drive Ball earnings
Ball Corporation has reported third quarter net earnings attributable to the corporation of $115.2 million, up on $115.1 million from the same quarter of 2012.
Improved operational results were put down to better than expected global beverage can volumes, an improved seasonal vegetable harvest and solid execution companywide.
In the Americas and Asia, metal beverage packaging volumes were down compared to the same quarter last year ($134.8m of earnings compared to $142.2m in 2012), largely due to a previously announced loss of business in North America. However, the company notes that growth in speciality containers increased signifciantly.
Ball’s facility in Milwaukee, USA ceased production of 12-ounce beverage cans, while other regional specialty can lines ramped up production. Meanwhile, the Alagoinhas, Brazil, facility completed installation of a second can line capable of manufacturing multiple can sizes, whilst the Chinese beverage can market continued high single-digit growth.
Metal beverage packaging in Europe witnessed segment operating earnings of $60.5 (up from $54.3m in last year’s third quarter). This is attributed to stronger than expected volume growth, improved operating efficiencies and initial progress on cost-out initiatives announced in the first half of 2013.
Metal food and household products packaging volumes were up and contributed favourably to third quarter operational results. Solid global demand for aerosol containers, as well as improved year-over-year volumes in North America, drove volume growth. Ball continues to invest in its extruded aluminum manufacturing capabilities to meet increasing market demand.
Scott C. Morrison, senior vice president and chief financial officer at Ball, comments, “Although global economic circumstances continue to be challenging, our third quarter operational performance and strong free cash generation reflect our increasing momentum as we head into 2014.”
