Ball Reports Third Quarter 2024 Results

Highlights

Third quarter U.S. GAAP total diluted earnings per share of 65 cents vs. 64 cents in 2023

Third quarter comparable diluted earnings per share of 91 cents vs. 83 cents in 2023

Returned $1.25 billion to shareholders via share repurchases and dividends in the first nine months of 2024; on track to return in excess of $1.6 billion to shareholders by year-end

In late-October, completed acquisition of Alucan Entec, S.A., a European impact extruded aluminum packaging business

In 2024 and beyond, positioned to advance the use of sustainable aluminum packaging, grow comparable diluted earnings per share and EVA, generate strong free cash flow and expand long-term return of value to shareholders

WESTMINSTER, Colo., Oct. 31, 2024 /PRNewswire/ -- Ball Corporation (NYSE:BALL) today reported third quarter results. References to net sales and comparable operating earnings in today's release do not include the company's former aerospace business. Year-over-year net earnings attributable to the corporation and comparable net earnings do include the performance of the company's former aerospace business through the sale date of February 16, 2024. On a U.S. GAAP basis, the company reported, third quarter 2024 net earnings attributable to the corporation of $197 million (including a net after-tax loss of $81 million, or 26 cents per diluted share for business consolidation and other non-comparable items) or total diluted earnings per share of 65 cents, on sales of $3.08 billion, compared to $203 million net earnings attributable to the corporation, or total diluted earnings per share of 64 cents (including a net after-tax loss of $60 million, or 19 cents per diluted share for business consolidation and other non-comparable items) on sales of $3.11 billion in 2023. Results for the first nine months of 2024 were net earnings attributable to the corporation of $4.04 billion (including a net after-tax gain of $3.31 billion for the aerospace business sale, business consolidation and other non-comparable items), or total diluted earnings per share of $12.96, on sales of $8.92 billion compared to $553 million, or total diluted earnings per share of $1.74, on sales of $9.16 billion for the first nine months of 2023.

Ball's third quarter and year-to-date 2024 comparable earnings per diluted share were 91 cents and $2.33, respectively, versus third quarter and year-to-date 2023 comparable earnings per diluted share of 83 cents and $2.13, respectively.

"We delivered strong third quarter results and have returned $1.25 billion to shareholders in the first nine months of 2024. Leveraging our strong financial position and leaner operating model, the company remains uniquely positioned to enable our purpose of advancing the greater use of sustainable aluminum packaging, despite the current end consumer environment in certain geographies. We continue to complement our purpose by driving innovation and sustainability on a global scale, unlocking additional manufacturing efficiencies and enabling consistent delivery of high-quality, long-term shareholder value creation," said Daniel W. Fisher, chairman and chief executive officer.

Details of reportable segment comparable operating earnings, business consolidation and other activities, business segment descriptions and other non-comparable items can be found in the notes to the unaudited condensed consolidated financial statements that accompany this news release. References to volume data represent units shipped.

Beverage Packaging, North and Central America

Beverage packaging, North and Central America, segment comparable operating earnings for third quarter 2024 were $203 million on sales of $1.46 billion compared to $196 million on sales of $1.54 billion during the same period in 2023. The decrease in third quarter sales reflects lower year-over-year volumes and price/mix. 

Third quarter segment comparable operating earnings increased year-over-year primarily due to price/mix partially offset by lower volumes of 3.1 percent. Aluminum beverage cans continue to outperform other substrates despite continued economic pressure on the end consumer. Going forward, benefits from fixed and variable cost-out initiatives and improved operational efficiencies are expected to improve results throughout the remainder of 2024 and beyond.

Beverage Packaging, EMEA

Beverage packaging, EMEA, segment comparable operating earnings for third quarter 2024 were $128 million on sales of $950 million compared to $103 million on sales of $902 million during the same period in 2023. Third quarter sales primarily reflect higher volumes.

Third quarter comparable operating earnings reflect 6.7 percent higher volumes. Packaging mix shift to aluminum cans supported by ongoing packaging legislation in certain countries continues to be a driver of aluminum beverage packaging growth. Going forward, sustainability tailwinds and improved operational efficiencies are expected to improve results.

Beverage Packaging, South America

Beverage packaging, South America, segment comparable operating earnings for third quarter 2024 were $78 million on sales of $484 million compared to $61 million on sales of $489 million during the same period in 2023. Third quarter sales reflect lower volumes partially offset by price/mix.

Third quarter segment comparable operating earnings increased year-over-year driven by favorable price/mix partially offset by 10.0 percent lower volumes during the quarter. Volumes were driven by the ongoing impact of disruptive economic and operating conditions in Argentina and demand outstripping supply in Brazil late in the quarter. In Argentina, the company continues to serve customers and assess risks given the dynamic economic and policy environment. Across South America multi-year customer initiatives to increase the use of sustainable aluminum packaging are expected to continue.

Non-reportable

Non-reportable is comprised of undistributed corporate expenses, net of corporate interest income, the results of the company's global aluminum aerosol business, beverage can manufacturing facilities in India, Saudi Arabia and Myanmar and the company's aluminum cup business.

Third quarter 2024 improved results reflect higher comparable operating earnings for the aluminum packaging businesses partially offset by increased year-over-year undistributed corporate expenses. The company's global aluminum aerosol, aluminum bottle and cups customers continue to collaborate with Ball to activate growth opportunities and tailored offerings for personal and home care brands, refill and reuse packaging for water, other beverages and venue specific needs to advance the circular economy.

In late-October, the company completed the acquisition of Alucan Entec, S.A., a European impact extruded aluminum packaging business, for the purchase price of €82 million (or $88 million using an exchange rate as of the date of close), subject to customary closing adjustments, which reflects an attractive EBITDA multiple of approximately 7.4x. The acquisition complements Ball's existing global extruded aluminum aerosol and bottle business with the addition of two manufacturing facilities near Lummen, Belgium, and Llinars del Vallés, Spain, along with associated contracts and other related assets.

Outlook

"Our company is performing well and on track to deliver or exceed against our stated comparable earnings growth goal and on target to return in excess of $1.6 billion to shareholders in 2024. By consistently executing on our plans to drive continuous improvement and operational excellence, our resulting strong free cash flow will allow us to return significant value to shareholders while also prudently investing in our business over the years to come," said Howard Yu, executive vice president and chief financial officer.

"Our global team is focused on executing our enterprise-wide strategy with purpose and pace to advance aluminum packaging and to consistently deliver high-quality results, products and returns. In 2024, we are positioned to achieve mid-single digit plus comparable diluted earnings per share growth, generate strong free cash flow and EVA while also returning significant value to shareholders through a combination of share repurchases and dividends. We will continue to leverage the strengths of our best-in-class footprint, product portfolio and operational talent. I want to thank our employees for their hard work to consistently deliver comparable diluted earnings per share growth greater than 10 percent per annum in 2025 and beyond," Fisher said.

About Ball Corporation

Ball Corporation supplies innovative, sustainable aluminum packaging solutions for beverage, personal care and household products customers. Ball Corporation employs 16,000 people worldwide and reported 2023 net sales of $12.06 billion, which excludes the divested aerospace business. For more information, visit www.ball.com, or connect with us on Facebook or X (Twitter).

Conference Call DetailsBall Corporation (NYSE:BALL) will hold its third quarter 2024 earnings call today at 9 a.m. Mountain time (11 a.m. Eastern). The North American toll-free number for the call is +1 877-497-9071. International callers should dial +1 201-689-8727. Please use the following URL for a webcast of the live call:

 https://event.choruscall.com/mediaframe/webcast.html?webcastid=0McTrGVD

For those unable to listen to the live call, a webcast replay and written transcript of the call will be posted within 48 hours of the call's conclusion to Ball's website at www.ball.com/investors under "news and presentations."

Forward-Looking StatementThis release contains "forward-looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates," "believes," and similar expressions typically identify forward looking statements, which are generally any statements other than statements of historical fact. Such statements are based on current expectations or views of the future and are subject to risks and uncertainties, which could cause actual results or events to differ materially from those expressed or implied. You should therefore not place undue reliance upon any forward-looking statements, and they should be read in conjunction with, and qualified in their entirety by, the cautionary statements referenced below. Ball undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key factors, risks and uncertainties that could cause actual outcomes and results to be different are summarized in filings with the Securities and Exchange Commission, including Exhibit 99 in Ball's Form 10-K, which are available on Ball's website and at www.sec.gov. Additional factors that might affect: a) Ball's packaging segments include product capacity, supply, and demand constraints and fluctuations and changes in consumption patterns; availability/cost of raw materials, equipment, and logistics; competitive packaging, pricing and substitution; changes in climate and weather and related events such as drought, wildfires, storms, hurricanes, tornadoes and floods; footprint adjustments and other manufacturing changes, including the opening and closing of facilities and lines; failure to achieve synergies, productivity improvements or cost reductions; unfavorable mandatory deposit or packaging laws; customer and supplier consolidation; power and supply chain interruptions; changes in major customer or supplier contracts or loss of a major customer or supplier; inability to pass through increased costs; war, political instability and sanctions, including relating to the situation in Russia and Ukraine and its impact on Ball's supply chain and its ability to operate in Europe, the Middle East and Africa regions generally; changes in foreign exchange or tax rates; and tariffs, trade actions, or other governmental actions, including business restrictions and orders affecting goods produced by Ball or in its supply chain, including imported raw materials; and b) Ball as a whole include those listed above plus: the extent to which sustainability-related opportunities arise and can be capitalized upon; changes in senior management, succession, and the ability to attract and retain skilled labor; regulatory actions or issues including those related to tax, environmental, social and governance reporting, competition, environmental, health and workplace safety, including U.S. Federal Drug Administration and other actions or public concerns affecting products filled in Ball's containers, or chemicals or substances used in raw materials or in the manufacturing process; technological developments and innovations; the ability to manage cyber threats; litigation; strikes; disease; pandemic; labor cost changes; inflation; rates of return on assets of Ball's defined benefit retirement plans; pension changes; uncertainties surrounding geopolitical events and governmental policies; reduced cash flow; interest rates affecting Ball's debt; successful or unsuccessful joint ventures, acquisitions and divestitures, and their effects on Ball's operating results and business generally.

 

Ball Corporation

Condensed Financial Statements (Third Quarter 2024)

Unaudited Condensed Consolidated Statements of Earnings

Three Months Ended

Nine Months Ended

September 30,

September 30,

($ in millions, except per share amounts)

2024

2023

2024

2023

Net sales

$

3,082

$

3,111

$

8,915

$

9,159

Cost of sales (excluding depreciation and amortization)

(2,425)

(2,512)

(7,065)

(7,450)

Depreciation and amortization

(150)

(152)

(460)

(449)

Selling, general and administrative

(142)

(133)

(518)

(409)

Business consolidation and other activities

(85)

(29)

(171)

(43)

Interest income

14

12

58

23

Interest expense

(67)

(122)

(228)

(351)

Debt refinancing and other costs

—

—

(3)

—

Earnings before taxes

227

175

528

480

Tax (provision) benefit

(42)

(45)

(118)

(107)

Equity in results of affiliates, net of tax

8

3

21

13

Earnings from continuing operations

193

133

431

386

Discontinued operations, net of tax

6

71

3,613

171

Net earnings

199

204

4,044

557

Net earnings attributable to noncontrolling interests, net of tax

2

1

4

4

Net earnings attributable to Ball Corporation

$

197

$

203

$

4,040

$

553

Earnings per share:

Basic - continuing operations

$

0.63

$

0.42

$

1.38

$

1.22

Basic - discontinued operations

0.02

0.22

11.70

0.54

Total basic earnings per share

$

0.65

$

0.64

$

13.08

$

1.76

Diluted - continuing operations

$

0.63

$

0.42

$

1.37

$

1.20

Diluted - discontinued operations

0.02

0.22

11.59

0.54

Total diluted earnings per share

$

0.65

$

0.64

$

12.96

$

1.74

Weighted average shares outstanding (000s):

Basic

302,406

314,983

308,851

314,596

Diluted

305,219

317,296

311,674

316,938

 

Ball Corporation

Condensed Financial Statements (Third Quarter 2024)

Unaudited Condensed Consolidated Statements of Cash Flows

Nine Months Ended

September 30,

($ in millions)

2024

2023

Cash Flows from Operating Activities:

Net earnings

$

4,044

$

557

Depreciation and amortization

469