Ball 2013 results show improvement
Ball Corporation has reported full-year 2013 net earnings attributable to the corporation of $406.8 million (including after tax charges of $82.8 million, or 55 cents per diluted share for business consolidation costs, discontinued operations, debt refinancing costs and other activities), or $2.73 per diluted share, on sales of $8.5 billion, compared to $403.5 million, or $2.55 per diluted share, on sales of $8.7 billion in 2012. On a comparable basis, Ball’s full-year 2013 results were net earnings to the corporation of $489.6 million, or $3.28 per diluted share, compared to $483.0 million, or $3.06 per diluted share, in 2012.
“Though worldwide economic conditions have not changed materially, we have adapted well by effectively managing our asset base, leveraging our customer relationships to capture growth in key markets, and implementing programs to drive efficiencies and improve results,” said John A. Hayes, chairman, president and chief executive officer. “Specialty can growth in the Americas, improved cost management in our global packaging operations and solid program execution in our aerospace operations led to results that exceeded our expectations.”
Fourth quarter 2013 net earnings attributable to Ball Corporation were $124.5 million, or 85 cents per diluted share, on sales of $2.0 billion, compared to $60.6 million, or 39 cents per diluted share, on sales of $2.1 billion, in the fourth quarter of 2012. On a comparable basis, Ball’s fourth quarter results were net earnings of $126.8 million, or 86 cents per diluted share, compared to $98.9 million, or 64 cents per diluted share, in the fourth quarter of 2012.
In the Americas and Asia, metal beverage packaging showed continued excellent operating performance and strong demand for speciality packaging continued in the Americas, offset by sluggish 12-ounce can demand in North America. During the fourth quarter, the second production line in the Alagoinhas, Brazil, beverage can plant contributed favourably to segment results. In Asia, Ball relocated beverage can and end equipment from the Shenzhen plant to the company’s existing Foshan plant to maximise efficiencies during a challenging period of industry overcapacity.
In Europe, full-year and fourth quarter comparable operating earnings were affected favourably by solid demand for beverage containers across the region and good cost management. Ball’s plans for long-term cost optimisation, including the consolidation of the Ratingen, Germany, regional administrative offices, are apparently progressing as planned.
“We anticipate full-year 2014 free cash flow to be in the range of $550 million after capital expenditures of nearly $375 million with the majority of free cash flow being returned to shareholders via share repurchases,” said Scott C. Morrison, senior vice president and chief financial officer.
“As we transition into 2014, we are confident in our ability to increase EVA dollar generation and achieve our long-term diluted earnings per share growth goal of 10 to 15 percent,” Hayes said.
