WESTMINSTER, Colo.,
May 6, 2021 /PRNewswire/ -- Ball
Corporation (NYSE: BLL) today reported, on a U.S. GAAP basis, first
quarter 2021 net earnings attributable to the corporation of
$200 million (including net after-tax
charges of $40 million, or
12 cents per diluted share for
business consolidation and other non-comparable items), or
60 cents per diluted share, on sales
of $3.1 billion, compared to
$23 million net earnings attributable
to the corporation, or 7 cents per
diluted share (including net after-tax charges of $179 million, or 54
cents per diluted share for business consolidation and other
non-comparable items), on sales of $2.8
billion in 2020. Ball's first quarter 2021 comparable net
earnings were $240 million, or
72 cents per diluted share, compared
to $202 million, or 61 cents per diluted share in 2020.
Details of comparable segment earnings, business consolidation
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.
During the quarter, the company increased comparable earnings
per diluted share by 18% on 8% global beverage volume growth and
maintained strong aerospace backlog. In addition to focusing on
team safety, the company's EMEA and South American beverage can
businesses experienced notably stronger comparable earnings, the
new beverage can manufacturing facility in Glendale, Arizona, started production and the
Ball Aluminum Cup™ began national rollout distribution at retail
late in the quarter. Significant demand growth for sustainable
aluminum packaging continues to outstrip global supply and the
cadence of capital investments to address contracted customer
demand is accelerating.
"Positive momentum continues across our company despite
anticipated startup costs and isolated operational impacts in our
North American beverage can business due to winter storms and
aerospace customer supply-chain disruptions experienced during the
quarter. Global projects in North
America, South America and
EMEA are expected to add at least 25 billion units of contracted
beverage can capacity by year-end 2023 (off a 2019 base of 100
billion units), projects are on track and will contribute
meaningfully to 2021 and beyond. Our focus remains on our
employees' safety, training and development, the efficient startups
of EVA-enhancing capital projects to serve our customers' growth,
the successful retail launch of the Ball Aluminum Cup™ and
delivering value to our stakeholders in 2021 and beyond," said
John A. Hayes, chairman and chief
executive officer.
Beverage Packaging, North and Central America
Beverage packaging, North and Central
America, comparable segment operating earnings for the first
quarter 2021 were $140 million on
sales of $1.3 billion compared to
$146 million on sales of $1.2 billion in 2020.
Comparable segment earnings reflect 6% volume growth, the
benefits from new contractual terms and higher specialty mix being
more than offset by startup costs associated with three new
manufacturing plants and the impact of lost production from winter
storms.
Demand for aluminum beverage cans and bottles continues to
outstrip supply across North
America. The company's new Glendale, Arizona, facility successfully
started up during the first quarter, and the company anticipates
the new Pittston, Pennsylvania,
facility to start beverage can production by the end of second
quarter. The company further anticipates Glendale and Pittston to exit 2021 with four lines
operational in each facility. As needed, both facilities are
scalable to add incremental capacity throughout 2022 and beyond to
serve consumer's growth for sustainable packaging, new product
introductions and to offset cans currently being imported.
The timeline for the company's recently announced construction
of a new aluminum end manufacturing facility in Bowling Green, Kentucky, has been accelerated
to align end capacity with even higher can demand. Bowling Green end manufacturing is now
scheduled to begin in late 2021. Full-year 2021 startup costs are
still anticipated to be in the range of $50
million.
Beverage Packaging, EMEA
Beverage packaging, EMEA, comparable segment operating earnings
for first quarter were $100 million
on sales of $796 million compared to
$68 million on sales of $669 million in 2020.
First quarter comparable segment earnings reflect 5% segment
volume growth, improving specialty mix and strong consumption
trends in the U.K., Nordics, Egypt
and Russia. Packaging mix shift to
sustainable aluminum cans for traditional and non-traditional
beverages continues to accelerate, and demand is outstripping
supply. Despite protracted country-by-country COVID-19 lockdowns,
additional beverage can line investments in the U.K., Czech Republic and Russia are largely on track to support
regional contracted demand in 2021 and beyond.
During the quarter, the segment launched the world's first ASI
(Aluminum Stewardship Initiative) certified can with a major
customer in Spain. The cans are
certified according to ASI's standards for responsible production,
sourcing and stewardship.
Beverage Packaging, South
America
Beverage packaging, South
America, comparable segment operating earnings for first
quarter were $93 million on sales of
$487 million compared to $63 million on sales of $405 million in 2020.
Segment volume ended the quarter up 14% and specialty mix also
increased to more than 65%. First quarter earnings reflect
favorable price/mix and exceptional operating performance despite
COVID-19 recurrences across South
America. In Brazil, demand
remains very strong and continues to outstrip supply as recyclable
aluminum beverage packaging is favored over other substrates.
To support contracted volume growth and can-filling investments
across South America, multiple can
manufacturing investments are anticipated across our existing
footprint in 2021 and beyond. The previously announced multi-line
facility in Frutal, Brazil, is on
schedule to begin production in the second half of 2021.
Aerospace
Aerospace comparable segment operating earnings for the first
quarter were $35 million on sales of
$424 million compared to $40 million on sales of $432 million in 2020. Contracted backlog ended
the quarter at $2.2 billion and
contracts won, but not yet booked into contracted backlog was
$5.3 billion.
Segment results reflect the inefficiencies created from certain
customer supply-chain disruptions, timing effects of certain
sub-supplier contracts, and costs due to COVID-19 safety and other
protocols. The company continues to win defense, climate change and
Earth-monitoring contracts to provide mission-critical programs and
technologies to U.S. government, defense, intelligence, and
reconnaissance and surveillance customers. Contracted and
won-not-booked backlog are expected to rise throughout 2021 and
segment earnings remain on track to achieve double-digit growth.
Hiring to support future growth and multiple projects to expand
manufacturing capacity, test capabilities engineering, and support
workspace remain on track.
Non-reportable
In addition to undistributed corporate expenses, the results for
the company's global aluminum aerosol business, beverage can
manufacturing facilities in India,
Saudi Arabia and Myanmar and investments in the company's new
aluminum cup business continue to be reported in other
non-reportable.
First quarter results reflect higher year-over-year
undistributed corporate expenses and marketing costs associated
with the aluminum cup national retail launch. During the quarter,
the company's global aluminum aerosol volumes increased
low-single-digits and customers continue to pursue sustainable
packaging solutions including the company's new Infinity aluminum
bottle.
Outlook
"Global demand for aluminum packaging continues to grow. In
2021, we are allocating in excess of $1.5
billion in capital to support EVA-enhancing projects at
returns higher than our 9% after-tax hurdle. As our cash from
operations continues to increase and we maintain optimal net debt
to comparable EBITDA ratios, we will accelerate return of value to
shareholders via dividends and share repurchases," said
Scott C. Morrison, executive vice
president and chief financial officer.
"We continue to achieve at a high level due to our team's
ability to adapt and work safely together. Our Drive for 10 vision
and enduring culture allow us to successfully navigate short-term
challenges and invest in long-term opportunities to enable growth
for sustainable aluminum packaging and aerospace technologies. In
2021 and beyond, we look forward to growing our cash from
operations and EVA dollars on an even larger capital base while
returning capital to our shareholders and exceeding our long-term
diluted earnings per share growth goal of at least 10 to 15%,"
Hayes said.
About Ball Corporation
Ball Corporation supplies innovative, sustainable aluminum
packaging solutions for beverage, personal care and household
products customers, as well as aerospace and other technologies and
services primarily for the U.S. government. Ball Corporation and
its subsidiaries employ 21,500 people worldwide and reported 2020
net sales of $11.8 billion. For more
information, visit www.ball.com, or connect with us on Facebook or
Twitter.
Conference Call Details
Ball Corporation (NYSE: BLL) will hold its first quarter
2021 earnings call today at 9 a.m. Mountain
time (11 a.m. Eastern). The
North American toll-free number for the call is 800-920-5564.
International callers should dial 212-231-2909. Please use the
following URL for a webcast of the live call:
https://edge.media-server.com/mmc/p/569qbar7
For those unable to listen to the live call, a taped replay will
be available from 11 a.m. Mountain
time on May 6, 2021, until
11 a.m. Mountain time on May 13, 2021. To access the replay, call
800-633-8284 (North American callers) or 402-977-9140
(international callers) and use reservation number 21993264. A
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 Statements
This 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 any such statements should be read in conjunction
with, and qualified in their entirety by, the cautionary statements
referenced below. The Company 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 our
Form 10-K, which are available on our website and at www.sec.gov.
Additional factors that might affect: a) our 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; footprint
adjustments and other manufacturing changes, including the startup
of new 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;
political instability and sanctions; currency controls; changes in
foreign exchange or tax rates; and tariffs, trade actions, or other
governmental actions, including business restrictions and
shelter-in-place orders in any country or jurisdiction affecting
goods produced by us or in our supply chain, including imported raw
materials; b) our aerospace segment include funding, authorization,
availability and returns of government and commercial contracts;
and delays, extensions and technical uncertainties affecting
segment contracts; c) the Company 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 action or issues including tax,
environmental, health and workplace safety, including U.S. FDA and
other actions or public concerns affecting products filled in our
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; rates of return on
assets of the Company's defined benefit retirement plans; pension
changes; uncertainties surrounding geopolitical events and
governmental policies both in the U.S. and in other countries,
including policies, orders, and actions related to COVID-19;
reduced cash flow; interest rates affecting our debt; and
successful or unsuccessful joint ventures, acquisitions and
divestitures, and their effects on our operating results and
business generally.
# # #
Condensed
Financial Statements (First Quarter 2021)
|
|
Unaudited
Condensed Consolidated Statements of Earnings
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
($ in millions,
except per share amounts)
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
Net
sales
|
|
$
|
3,125
|
|
$
|
2,785
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
Cost of sales
(excluding depreciation and amortization)
|
|
|
(2,493)
|
|
|
(2,215)
|
Depreciation and
amortization
|
|
|
(168)
|
|
|
(169)
|
Selling, general and
administrative
|
|
|
(157)
|
|
|
(131)
|
Business consolidation
and other activities
|
|
|
(7)
|
|
|
(115)
|
|
|
|
(2,825)
|
|
|
(2,630)
|
|
|
|
|
|
|
|
Earnings before
interest and taxes
|
|
|
300
|
|
|
155
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(67)
|
|
|
(71)
|
Debt refinancing and
other costs
|
|
|
-
|
|
|
(40)
|
Total interest
expense
|
|
|
(67)
|
|
|
(111)
|
Earnings before
taxes
|
|
|
233
|
|
|
44
|
Tax (provision)
benefit
|
|
|
(32)
|
|
|
4
|
Equity in results of
affiliates, net of tax
|
|
|
(1)
|
|
|
(25)
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
200
|
|
|
23
|
|
|
|
|
|
|
|
Net loss attributable
to noncontrolling interests, net of tax
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
Net earnings
attributable to Ball Corporation
|
|
$
|
200
|
|
$
|
23
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
Basic
|
|
$
|
0.61
|
|
$
|
0.07
|
Diluted
|
|
$
|
0.60
|
|
$
|
0.07
|
|
|
|
|
|
|
|
Weighted average
shares outstanding (000s):
|
|
|
|
|
|
|
Basic
|
|
|
327,811
|
|
|
325,346
|
Diluted
|
|
|
333,673
|
|
|
332,326
|
Condensed
Financial Statements (First Quarter 2021)
|
|
Unaudited
Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
($ in
millions)
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
Net earnings
|
|
$
|
200
|
|
$
|
23
|
Depreciation and
amortization
|
|
|
168
|
|
|
169
|
Business consolidation
and other activities
|
|
|
7
|
|
|
115
|
Deferred tax provision
(benefit)
|
|
|
(2)
|
|
|
(36)
|
Other, net
|
|
|
(147)
|
|
|
58
|
Changes in working
capital
|
|
|
(703)
|
|
|
(1,037)
|
Cash provided by (used
in) operating activities
|
|
|
(477)
|
|
|
(708)
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(363)
|
|
|
(213)
|
Business
dispositions
|
|
|
1
|
|
|
(17)
|
Other, net
|
|
|
14
|
|
|
(4)
|
Cash provided by (used
in) investing activities
|
|
|
(348)
|
|
|
(234)
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
Changes in borrowings,
net
|
|
|
1
|
|
|
198
|
Net issuances
(purchases) of common stock
|
|
|
(5)
|
|
|
(88)
|
Dividends
|
|
|
(50)
|
|
|
(51)
|
Other, net
|
|
|
-
|
|
|
(34)
|
Cash provided by (used
in) financing activities
|
|
|
(54)
|
|
|
25
|
Effect of currency
exchange rate changes on cash, cash equivalents and restricted
cash
|
|
|
(31)
|
|
|
(78)
|
Change in cash,
cash equivalents and restricted cash
|
|
|
(910)
|
|
|
(995)
|
Cash, cash
equivalents and restricted cash - beginning of
period
|
|
|
1,381
|
|
|
1,806
|
Cash, cash
equivalents and restricted cash - end of period
|
|
$
|
471
|
|
$
|
811
|
Condensed
Financial Statements (First Quarter 2021)
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
March
31,
|
($ in
millions)
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
461
|
|
$
|
801
|
Receivables,
net
|
|
|
2,115
|
|
|
1,862
|
Inventories,
net
|
|
|
1,399
|
|
|
1,354
|
Other current
assets
|
|
|
262
|
|
|
224
|
Total current
assets
|
|
|
4,237
|
|
|
4,241
|
Property, plant
and equipment, net
|
|
|
5,570
|
|
|
4,499
|
Goodwill
|
|
|
4,416
|
|
|
4,270
|
Intangible assets,
net
|
|
|
1,813
|
|
|
1,914
|
Other
assets
|
|
|
1,943
|
|
|
1,621
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
17,979
|
|
$
|
16,545
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
|
$
|
766
|
|
$
|
522
|
Payables and other
accrued liabilities
|
|
|
4,218
|
|
|
3,481
|
Total current
liabilities
|
|
|
4,984
|
|
|
4,003
|
Long-term
debt
|
|
|
6,941
|
|
|
7,476
|
Other long-term
liabilities
|
|
|
2,500
|
|
|
2,366
|
Equity
|
|
|
3,554
|
|
|
2,700
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
$
|
17,979
|
|
$
|
16,545
|
Notes to the
Condensed Financial Statements (First Quarter 2021)
|
|
1. Business
Segment Information
|
|
Ball's operations are
organized and reviewed by management along its product lines and
geographical areas and presented in the four reportable segments
outlined below.
|
|
Beverage
packaging, North and Central America: Consists of
operations in the U.S., Canada and Mexico that manufacture and sell
aluminum beverage containers.
|
|
Beverage
packaging, EMEA: Consists of operations in numerous
countries throughout Europe, including Russia, as well as Egypt and
Turkey, that manufacture and sell aluminum beverage containers
throughout those regions.
|
|
Beverage
packaging, South America: Consists of operations in
Brazil, Argentina, Paraguay and Chile that manufacture and sell
aluminum beverage containers throughout most of South
America.
|
|
Aerospace: Consists of operations
that manufacture and sell aerospace and other related products and
the provision of services used in the defense, civil space and
commercial space industries.
|
|
Other consists of a
non-reportable operating segment (beverage packaging, other) that
manufactures and sells aluminum beverage containers; a
non-reportable segment that manufactures and sells extruded
aluminum aerosol containers and aluminum slugs (aerosol packaging);
a non-reportable operating segment that manufactures and sells
aluminum cups (aluminum cups); undistributed corporate expenses;
intercompany eliminations and other business activities.
|
|
The company also has
investments in operations in Guatemala, Panama, South Korea, the
U.S. and Vietnam that are accounted for under the equity method of
accounting and, accordingly, those results are not included in
segment sales or earnings.
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
($ in
millions)
|
2021
|
|
2020
|
|
|
|
|
|
|
Net
sales
|
|
|
|
|
|
Beverage packaging,
North and Central America
|
$
|
1,296
|
|
$
|
1,181
|
Beverage packaging,
EMEA
|
|
796
|
|
|
669
|
Beverage packaging,
South America
|
|
487
|
|
|
405
|
Aerospace
|
|
424
|
|
|
432
|
Reportable segment
sales
|
|
3,003
|
|
|
2,687
|
Other
|
|
122
|
|
|
98
|
Net
sales
|
$
|
3,125
|
|
$
|
2,785
|
|
|
|
|
|
|
Comparable
operating earnings
|
|
|
|
|
|
Beverage packaging,
North and Central America
|
$
|
140
|
|
$
|
146
|
Beverage packaging,
EMEA
|
|
100
|
|
|
68
|
Beverage packaging,
South America
|
|
93
|
|
|
63
|
Aerospace
|
|
35
|
|
|
40
|
Reportable segment
comparable operating earnings
|
|
368
|
|
|
317
|
|
|
|
|
|
|
Other
(a)
|
|
(23)
|
|
|
(10)
|
Comparable operating earnings
|
|
345
|
|
|
307
|
Reconciling
items
|
|
|
|
|
|
Business
consolidation and other activities
|
|
(7)
|
|
|
(115)
|
Amortization of
acquired Rexam intangibles
|
|
(38)
|
|
|
(37)
|
Earnings before
interest and taxes
|
$
|
300
|
|
$
|
155
|
____________________
|
(a)
|
Includes
undistributed corporate expenses, net, of $26 million and $14
million for the three months ended March 31, 2021 and 2020,
respectively.
|
2. Non-U.S. GAAP
Measures
|
|
Non-U.S. GAAP
Measures – Non-U.S. GAAP measures should not be considered
in isolation. They should not be considered superior to, or a
substitute for, financial measures calculated in accordance with
U.S. GAAP and may not be comparable to similarly titled measures of
other companies. Presentations of earnings and cash flows presented
in accordance with U.S. GAAP are available in the company's
earnings releases and quarterly and annual regulatory filings.
Information reconciling forward-looking U.S. GAAP measures to
non-U.S. GAAP measures is not available without unreasonable
effort. We have not provided guidance for the most directly
comparable U.S. GAAP financial measures, as they are not available
without unreasonable effort due to the high variability, complexity
and low visibility with respect to certain special items, including
restructuring charges, business consolidation and other costs,
gains and losses related to acquisition and divestiture of
businesses, the ultimate outcome of certain legal or tax
proceedings and other non-comparable items. These items are
uncertain, depend on various factors and could be material to our
results computed in accordance with U.S. GAAP.
|
|
Comparable
Earnings Before Interest, Taxes, Depreciation and Amortization
(Comparable EBITDA), Comparable Operating Earnings, Comparable Net
Earnings, Comparable Diluted Earnings Per Share and Net Debt –
Comparable EBITDA is earnings before interest, taxes, depreciation
and amortization, business consolidation and other non-comparable
costs. Comparable Operating Earnings is earnings before interest,
taxes, business consolidation and other non-comparable costs.
Comparable Net Earnings is net earnings attributable to Ball
Corporation before business consolidation and other non-comparable
costs after tax. Comparable Diluted Earnings Per Share is
Comparable Net Earnings divided by diluted weighted average shares
outstanding. We use Comparable EBITDA, Comparable Operating
Earnings, Comparable Net Earnings, and Comparable Diluted Earnings
Per Share internally to evaluate the company's operating
performance. Net Debt is total debt less cash and cash equivalents,
which are derived directly from the company's financial statements.
Ball management uses Net Debt to Comparable EBITDA and Comparable
EBITDA to interest expense as metrics to monitor the credit quality
of Ball Corporation.
|
|
Please see the
company's website for further details of the company's non-U.S.
GAAP financial measures at www.ball.com/investors under the
"FINANCIALS" tab.
|
A summary of
the effects of non-comparable items on after tax earnings is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
($ in millions,
except per share amounts)
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Ball Corporation
|
|
$
|
200
|
|
|
$
|
23
|
Business
consolidation and other activities
|
|
|
7
|
|
|
|
115
|
Amortization of
acquired Rexam intangibles
|
|
|
38
|
|
|
|
37
|
Share of equity
method affiliate non-comparable costs, net of tax
|
|
|
6
|
|
|
|
30
|
Debt refinancing and
other costs
|
|
|
-
|
|
|
|
40
|
Noncontrolling
interest share of non-comparable costs, net of tax
|
|
|
-
|
|
|
|
1
|
Non-comparable tax
items
|
|
|
(11)
|
|
|
|
(44)
|
Comparable Net
Earnings
|
|
$
|
240
|
|
|
$
|
202
|
Comparable diluted
earnings per share
|
|
$
|
0.72
|
|
|
$
|
0.61
|
A summary of
the effects of non-comparable items on earnings before interest and
taxes is as follows:
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
($ in
millions)
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
Net earnings
attributable to Ball Corporation
|
|
$
|
200
|
|
$
|
23
|
Net loss attributable
to noncontrolling interests, net of tax
|
|
|
-
|
|
|
-
|
Net
earnings
|
|
|
200
|
|
|
23
|
Equity in results of
affiliates, net of tax
|
|
|
1
|
|
|
25
|
Tax provision
(benefit)
|
|
|
32
|
|
|
(4)
|
Earnings before
taxes
|
|
|
233
|
|
|
44
|
Total interest
expense
|
|
|
67
|
|
|
111
|
Earnings before
interest and taxes
|
|
|
300
|
|
|
155
|
Business
consolidation and other activities
|
|
|
7
|
|
|
115
|
Amortization of
acquired Rexam intangibles
|
|
|
38
|
|
|
37
|
Comparable Operating Earnings
|
|
$
|
345
|
|
$
|
307
|
A summary of
Comparable EBITDA and Net Debt is as follows:
|
|
|
|
Twelve
|
|
Less:
Three
|
|
Add:
Three
|
|
|
|
|
|
Months
Ended
|
|
Months
Ended
|
|
Months
Ended
|
|
Year
Ended
|
|
|
|
December
31,
|
|
March
31,
|
|
March
31,
|
|
March
31,
|
|
($ in millions,
except ratios)
|
|
2020
|
|
2020
|
|
2021
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Ball Corporation
|
|
$
|
585
|
|
$
|
23
|
|
$
|
200
|
|
$
|
762
|
|
Add: Net loss
attributable to noncontrolling interests, net of tax
|
|
|
(3)
|
|
|
-
|
|
|
-
|
|
|
(3)
|
|
Net
earnings
|
|
|
582
|
|
|
23
|
|
|
200
|
|
|
759
|
|
Less: Equity in
results of affiliates, net of tax
|
|
|
6
|
|
|
25
|
|
|
1
|
|
|
(18)
|
|
Add: Tax provision
(benefit)
|
|
|
99
|
|
|
(4)
|
|
|
32
|
|
|
135
|
|
Earnings before
taxes
|
|
|
687
|
|
|
44
|
|
|
233
|
|
|
876
|
|
Add: Total interest
expense
|
|
|
316
|
|
|
111
|
|
|
67
|
|
|
272
|
|
Earnings before
interest and taxes (EBIT)
|
|
|
1,003
|
|
|
155
|
|
|
300
|
|
|
1,148
|
|
Add: Business
consolidation and other activities (a)
|
|
|
262
|
|
|
115
|
|
|
7
|
|
|
154
|
|
Add: Amortization of
acquired Rexam intangibles (a)
|
|
|
150
|
|
|
37
|
|
|
38
|
|
|
151
|
|
Comparable Operating
Earnings
|
|
|
1,415
|
|
|
307
|
|
|
345
|
|
|
1,453
|
|
Add: Depreciation and
amortization
|
|
|
668
|
|
|
169
|
|
|
168
|
|
|
667
|
|
Less: Amortization of
acquired Rexam intangibles (a)
|
|
|
(150)
|
|
|
(37)
|
|
|
(38)
|
|
|
(151)
|
|
Comparable
EBITDA
|
|
$
|
1,933
|
|
$
|
439
|
|
$
|
475
|
|
$
|
1,969
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
expense
|
|
$
|
(316)
|
|
$
|
(111)
|
|
$
|
(67)
|
|
$
|
(272)
|
|
Less: Debt
refinancing and other costs
|
|
|
41
|
|
|
40
|
|
|
-
|
|
|
1
|
|
Interest
expense
|
|
$
|
(275)
|
|
$
|
(71)
|
|
$
|
(67)
|
|
$
|
(271)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt at period
end
|
|
|
|
|
|
|
|
|
|
|
$
|
7,707
|
|
Less: Cash and cash
equivalents
|
|
|
|
|
|
|
|
|
|
|
|
(461)
|
|
Net
Debt
|
|
|
|
|
|
|
|
|
|
|
$
|
7,246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
EBITDA/Interest Expense (Interest Coverage)
|
|
|
|
|
|
|
|
|
|
|
|
7.3
|
x
|
Net Debt/Comparable
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
3.7
|
x
|
____________________
|
(a)
|
For detailed
information on these items, please see the respective quarterly
filings and/or earnings releases, which can be found on our website
at www.ball.com.
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
($ in
millions)
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
Non-comparable
items - income (expense)
|
|
|
|
|
|
|
Beverage packaging,
North and Central America
|
|
|
|
|
|
|
Business consolidation
and other activities
|
|
|
|
|
|
|
Facility closure costs
(1)
|
|
$
|
1
|
|
$
|
(1)
|
Individually
insignificant items
|
|
|
-
|
|
|
(2)
|
Other non-comparable
items
|
|
|
|
|
|
|
Amortization of
acquired Rexam intangibles
|
|
|
(7)
|
|
|
(7)
|
Total beverage
packaging, North and Central America
|
|
|
(6)
|
|
|
(10)
|
|
|
|
|
|
|
|
Beverage packaging,
EMEA
|
|
|
|
|
|
|
Business consolidation
and other activities
|
|
|
|
|
|
|
Facility closure costs
(1)
|
|
|
(2)
|
|
|
(2)
|
Individually
insignificant items
|
|
|
-
|
|
|
(1)
|
Other non-comparable
items
|
|
|
|
|
|
|
Amortization of
acquired Rexam intangibles
|
|
|
(17)
|
|
|
(16)
|
Total beverage
packaging, EMEA
|
|
|
(19)
|
|
|
(19)
|
|
|
|
|
|
|
|
Beverage packaging,
South America
|
|
|
|
|
|
|
Business consolidation
and other activities
|
|
|
|
|
|
|
Individually
insignificant items
|
|
|
(1)
|
|
|
(1)
|
Other non-comparable
items
|
|
|
|
|
|
|
Amortization of
acquired Rexam intangibles
|
|
|
(14)
|
|
|
(14)
|
Total beverage
packaging, South America
|
|
|
(15)
|
|
|
(15)
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
Business consolidation
and other activities
|
|
|
|
|
|
|
Rexam acquisition
related compensation arrangements
|
|
|
-
|
|
|
(6)
|
Goodwill impairment
charges in beverage packaging, other segment
|
|
|
-
|
|
|
(62)
|
Reversal of certain
provisions in beverage packaging, other segment
|
|
|
-
|
|
|
11
|
Loss from sale of and
subsequent adjustment to selling price of steel food and steel
aerosol business
|
|
|
-
|
|
|
(15)
|
Loss on sale of China
business and related costs
|
|
|
-
|
|
|
(23)
|
Individually
insignificant items
|
|
|
(5)
|
|
|
(13)
|
Other non-comparable
items
|
|
|
|
|
|
|
Share of equity method
affiliate non-comparable costs, net of tax (2)
|
|
|
(6)
|
|
|
(30)
|
Noncontrolling
interest's share of non-comparable costs (income), net of
tax
|
|
|
-
|
|
|
(1)
|
Debt extinguishment
and refinance costs
|
|
|
-
|
|
|
(40)
|
Total other
|
|
|
(11)
|
|
|
(179)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
Total business
consolidation and other activities
|
|
|
(7)
|
|
|
(115)
|
Total other
non-comparable items
|
|
|
(44)
|
|
|
(108)
|
Total non-comparable
items
|
|
|
(51)
|
|
|
(223)
|
|
|
|
|
|
|
|
Tax effect on business
consolidation and other activities
|
|
|
2
|
|
|
17
|
Tax effect on other
non-comparable items
|
|
|
9
|
|
|
27
|
Total non-comparable
tax items
|
|
|
11
|
|
|
44
|
Total
non-comparable items, net of tax
|
|
$
|
(40)
|
|
$
|
(179)
|
____________________
|
(1)
|
The company recorded
charges and revisions to previous estimates for the costs of
employee severance and benefits and facility shutdown costs related
to plant closures and restructuring activities.
|
|
|
(2)
|
In the first quarter
of 2021, the company recorded its share of equity method
non-comparable items. In 2020, the company recorded its share of
equity method non-comparable costs, principally related to the
provision of additional equity contributions and loans to Ball
Metalpack by its shareholders.
|
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SOURCE Ball Corporation