BROOMFIELD, Colo., Oct. 30, 2014 /PRNewswire/ -- Ball
Corporation (NYSE: BLL) today reported third quarter net earnings
attributable to the corporation of $147.4
million, or $1.04 per
diluted share, on sales of $2.2
billion, compared to $115.2
million, or 78 cents per
diluted share, on sales of $2.3
billion in the third quarter of 2013. Third quarter 2014 net
earnings include after tax charges of $9.4
million, or 7 cents per
diluted share, for business consolidation and other activities.
Results for the first nine months of 2014 were net earnings
attributable to the corporation of $394.0
million, or $2.76 per diluted
share, on sales of $6.5 billion,
compared to $282.3 million, or
$1.88 per diluted share, on sales of
$6.5 billion in the first nine months
of 2013. Year-to-date 2014 net earnings include after tax charges
of $40.8 million for business
consolidation and debt refinancing costs.
Comparable 2014 earnings per diluted share for the third quarter
and year-to-date were $1.10 and
$3.04, respectively versus third
quarter and year-to-date 2013 comparable earnings per diluted share
of $1.00 and $2.42, respectively. Details of comparable
segment earnings and business consolidation activities can be found
in Notes 1 and 2 to the unaudited consolidated financial statements
that accompany this news release.
"As anticipated, volume comparisons in the third quarter were
challenging, led by weaker than expected customer demand for our
beverage cans in Brazil following
the World Cup and for steel food containers in North America," said John A. Hayes, chairman, president and chief
executive officer. "Though we continue to navigate through aluminum
premium headwinds in Europe, our
focus on global cost containment, exceptional manufacturing
performance and a lower effective tax rate led to improved third
quarter results."
Metal Beverage Packaging, Americas & Asia
Metal beverage packaging, Americas
and Asia, comparable segment
operating earnings were $133.4
million in the third quarter on sales of $1.1 billion, compared to $134.8 million on sales of $1.1 billion in the third quarter of 2013. For
the first nine months, comparable segment operating earnings were
$400.3 million on sales of
$3.2 billion, compared to
$364.5 million on sales of
$3.2 billion during the same period
in 2013.
Comparable segment results were roughly flat versus third
quarter 2013, as solid beer and specialty container demand in
North America were unable to fully
offset mid-teen volume declines in Brazil post-World Cup and ongoing softness for
12-ounce carbonated soft drink containers in the U.S. Volumes in
China were up mid-single digits.
Relentless focus on cost containment across the segment, progress
on additional specialty container investments in the U.S., and
improving volume conditions as Brazil enters its summer selling season
position the segment for better performance going forward.
Metal Beverage Packaging, Europe
Metal beverage packaging,
Europe, results in the quarter
were comparable segment operating earnings of $63.8 million on sales of $489.2 million, compared to $60.5 million on sales of $488.9 million in 2013. Results for the first
nine months were comparable segment operating earnings of
$193.0 million on sales of
$1.5 billion, compared to
$143.2 million on sales of
$1.4 billion in 2013.
Third quarter comparable results were up slightly with cost
savings offsetting higher aluminum premiums and low single-digit
volume declines for the segment. Progress continues on the Oss,
Netherlands, facility, which will
begin additional specialty can production during the second quarter
of 2015.
Metal Food & Household Products Packaging
Metal
food and household products packaging results in the third quarter
were comparable segment operating earnings of $43.0 million on sales of $450.6 million, compared to $58.4 million in 2013 on sales of $463.6 million. Year-to-date results were
comparable segment operating earnings of $119.1 million on sales of $1.2 billion, compared to $140.6 million on sales of $1.2 billion in 2013.
Segment results were down in the quarter influenced by
mid-to-upper single-digit volume declines for steel food containers
and ongoing service center manufacturing inefficiencies in the U.S.
Strong European extruded aluminum performance continues and Ball is
initiating investment in India to
meet increasing demand for extruded aluminum packaging in that
region.
Aerospace and Technologies
Aerospace and technologies
results were comparable segment operating earnings of $21.2 million on sales of $221.7 million in the third quarter, compared to
$18.0 million on sales of
$217.5 million in 2013. For the first
nine months, comparable segment operating earnings were
$70.1 million on sales of
$683.5 million compared to
$55.0 million on sales of
$675.0 million during the same period
last year. Backlog at the end of the quarter was $846.1 million.
During the quarter, WorldView-3, the first multi-payload,
super-spectral, high-resolution commercial satellite for earth
observations and advanced geospatial data, successfully launched
from Vandenberg Air Force Base. The segment continues to position
itself to pursue non-traditional growth projects while leveraging
its existing capabilities in the government sector.
Outlook
"Year-to-date we have returned more than
$350 million to shareholders in the
form of share repurchases and dividends, and we remain confident
that free cash flow will exceed $600
million for 2014 after capital spending of approximately
$375 million," said Scott C. Morrison, senior vice president and
chief financial officer.
"Our third quarter results largely reflected the volume slowdown
and current global economic conditions. As we close out the year,
we remain 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.
About Ball Corporation
Ball Corporation supplies
innovative, sustainable packaging solutions for beverage, food 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 14,500 people worldwide and
reported 2013 sales of $8.5 billion. For more information, visit
www.ball.com, or connect with us on Facebook or Twitter.
Conference Call Details
Ball Corporation will hold
its regular quarterly conference call on the company's results and
performance on Thursday, Oct. 30, at 9
a.m. Mountain Time (11 a.m.
Eastern). The North American toll-free number for the call is
800-909-4197. International callers should dial 303-223-0118.
Please use the following URL for a webcast of the live call:
http://edge.media-server.com/m/p/chheg3e2/lan/en
For those unable to listen to the live call, a taped replay will
be available from 11 a.m. Mountain
Time on Oct. 30, 2014, until
11 a.m. Mountain Time on Nov. 6, 2014. To access the replay, call
800-633-8284 (North American callers) or 402-977-9140
(international callers) and use reservation number 21735281. 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" and similar expressions identify
forward-looking statements. Such statements are subject to risks
and uncertainties, which could cause actual results to differ
materially from those expressed or implied. 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 risks and uncertainties 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. Factors that might affect: a) our packaging segments
include product demand fluctuations; availability/cost of raw
materials; competitive packaging, pricing and substitution; changes
in climate and weather; crop yields; competitive activity; failure
to achieve productivity improvements or cost reductions; mandatory
deposit or other restrictive packaging laws; customer and supplier
consolidation, power and supply chain influence; changes in major
customer or supplier contracts or loss of a major customer or
supplier; political instability and sanctions; and changes in
foreign exchange or tax rates; 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 plus: changes in senior management;
successful or unsuccessful acquisitions and divestitures;
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;
litigation; strikes; labor cost changes; rates of return on assets
of the company's defined benefit retirement plans; pension changes;
uncertainties surrounding the U.S. government budget, sequestration
and debt limit; reduced cash flow; ability to achieve cost-out
initiatives; interest rates affecting our debt.
Condensed
Financial Statements (Third Quarter 2014)
|
|
|
|
Unaudited
Condensed Consolidated Statements of Earnings
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
($ in millions,
except per share amounts)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Net
sales
|
$ 2,238.9
|
|
$ 2,277.9
|
|
$ 6,537.6
|
|
$ 6,471.3
|
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
Cost of sales
(excluding depreciation and amortization)
|
(1,807.3)
|
|
(1,846.9)
|
|
(5,266.6)
|
|
(5,289.3)
|
|
Depreciation and
amortization
|
(71.3)
|
|
(76.6)
|
|
(209.7)
|
|
(223.6)
|
|
Selling, general and
administrative
|
(123.1)
|
|
(99.0)
|
|
(342.2)
|
|
(311.2)
|
|
Business
consolidation and other activities
|
(9.2)
|
|
(43.8)
|
|
(17.8)
|
|
(89.1)
|
|
|
(2,010.9)
|
|
(2,066.3)
|
|
(5,836.3)
|
|
(5,913.2)
|
|
|
|
|
|
|
|
|
|
Earnings before
interest and taxes
|
228.0
|
|
211.6
|
|
701.3
|
|
558.1
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(40.1)
|
|
(45.5)
|
|
(120.9)
|
|
(138.0)
|
Debt refinancing
costs
|
-
|
|
(1.3)
|
|
(33.1)
|
|
(28.0)
|
|
Total interest
expense
|
(40.1)
|
|
(46.8)
|
|
(154.0)
|
|
(166.0)
|
Earnings before
taxes
|
187.9
|
|
164.8
|
|
547.3
|
|
392.1
|
Tax
provision
|
(39.8)
|
|
(44.1)
|
|
(139.6)
|
|
(93.0)
|
Equity in results of
affiliates, net of tax
|
0.3
|
|
0.9
|
|
1.9
|
|
0.9
|
|
|
|
|
|
|
|
|
|
Net earnings from
continuing operations
|
148.4
|
|
121.6
|
|
409.6
|
|
300.0
|
|
|
|
|
|
|
|
|
|
Discontinued
operations, net of tax
|
-
|
|
0.3
|
|
-
|
|
0.4
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
148.4
|
|
121.9
|
|
409.6
|
|
300.4
|
|
|
|
|
|
|
|
|
|
Less net earnings
attributable to noncontrolling interests
|
(1.0)
|
|
(6.7)
|
|
(15.6)
|
|
(18.1)
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Ball Corporation
|
$ 147.4
|
|
$ 115.2
|
|
$ 394.0
|
|
$ 282.3
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic - continuing
operations
|
$ 1.07
|
|
$ 0.80
|
|
$ 2.83
|
|
$ 1.92
|
|
Basic - discontinued
operations
|
-
|
|
-
|
|
-
|
|
-
|
|
Total basic earnings
per share
|
$ 1.07
|
|
$ 0.80
|
|
$ 2.83
|
|
$ 1.92
|
|
|
|
|
|
|
|
|
|
|
Diluted - continuing
operations
|
$ 1.04
|
|
$ 0.78
|
|
$ 2.76
|
|
$ 1.88
|
|
Diluted -
discontinued operations
|
-
|
|
-
|
|
-
|
|
-
|
|
Total diluted
earnings per share
|
$ 1.04
|
|
$ 0.78
|
|
$ 2.76
|
|
$ 1.88
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding (000s):
|
|
|
|
|
|
|
|
|
Basic
|
138,010
|
|
144,714
|
|
139,133
|
|
146,910
|
|
Diluted
|
142,090
|
|
147,895
|
|
142,986
|
|
150,122
|
Condensed
Financial Statements (Third Quarter 2014)
|
|
Unaudited
Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
September
30,
|
($ in
millions)
|
|
2014
|
|
2013
|
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
Net
earnings
|
|
$ 409.6
|
|
$ 300.4
|
Discontinued
operations, net of tax
|
|
-
|
|
(0.4)
|
Depreciation and
amortization
|
|
209.7
|
|
223.6
|
Business
consolidation and other activities
|
|
17.8
|
|
89.1
|
Deferred tax
provision
|
|
8.3
|
|
3.3
|
Other, net
|
|
(18.8)
|
|
4.8
|
Changes in working
capital
|
|
23.4
|
|
(207.2)
|
Cash provided by
(used in) continuing operating activities
|
|
650.0
|
|
413.6
|
Cash provided by
(used in) discontinued operating activities
|
|
-
|
|
(2.3)
|
Total cash provided
by (used in) operating activities
|
|
650.0
|
|
411.3
|
Cash Flows from
Investing Activities:
|
|
|
|
|
Capital
expenditures
|
|
(250.0)
|
|
(309.6)
|
Business
acquisitions, net of cash acquired
|
|
-
|
|
(14.2)
|
Other, net
|
|
11.1
|
|
2.2
|
Cash provided by
(used in) investing activities
|
|
(238.9)
|
|
(321.6)
|
Cash Flows from
Financing Activities:
|
|
|
|
|
Changes in
borrowings, net
|
|
(278.4)
|
|
254.3
|
Purchases of common
stock, net of issuances
|
|
(307.8)
|
|
(267.9)
|
Dividends
|
|
(54.8)
|
|
(56.8)
|
Other, net
|
|
7.7
|
|
(15.6)
|
Cash provided by
(used in) financing activities
|
|
(633.3)
|
|
(86.0)
|
Effect of currency
exchange rate changes on cash
|
|
(4.3)
|
|
(9.6)
|
Change in
cash
|
|
(226.5)
|
|
(5.9)
|
Cash - beginning
of period
|
|
416.0
|
|
174.1
|
Cash - end of
period
|
|
$ 189.5
|
|
$ 168.2
|
Condensed
Financial Statements (Third Quarter 2014)
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
September
30,
|
($ in
millions)
|
2014
|
|
2013
|
|
|
|
|
|
Assets
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$ 189.5
|
|
$ 168.2
|
|
Receivables,
net
|
1,049.4
|
|
1,087.5
|
|
Inventories,
net
|
972.7
|
|
980.3
|
|
Deferred taxes and
other current assets
|
167.2
|
|
194.7
|
|
Total current
assets
|
2,378.8
|
|
2,430.7
|
Property, plant
and equipment, net
|
2,371.1
|
|
2,348.3
|
Goodwill
|
2,300.6
|
|
2,375.2
|
Other assets,
net
|
564.4
|
|
566.5
|
|
|
|
|
|
|
Total
assets
|
$ 7,614.9
|
|
$ 7,720.7
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$ 306.5
|
|
$ 145.1
|
|
Payables and other
accrued liabilities
|
1,715.4
|
|
1,425.1
|
|
Total current
liabilities
|
2,021.9
|
|
1,570.2
|
Long-term
debt
|
3,009.0
|
|
3,417.5
|
Other long-term
liabilities
|
1,169.3
|
|
1,392.7
|
Shareholders'
equity
|
1,414.7
|
|
1,340.3
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity
|
$ 7,614.9
|
|
$ 7,720.7
|
Notes to the
Condensed Financial Statements (Third Quarter 2014)
|
|
|
|
|
|
|
|
|
1. Business
Segment Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
($ in
millions)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
Net sales
-
|
|
|
|
|
|
|
|
Metal beverage
packaging, Americas & Asia
|
$ 1,079.6
|
|
$ 1,109.2
|
|
$ 3,207.3
|
|
$ 3,190.7
|
Metal beverage
packaging, Europe
|
489.2
|
|
488.9
|
|
1,497.8
|
|
1,400.5
|
Metal food &
household products packaging
|
450.6
|
|
463.6
|
|
1,159.4
|
|
1,213.4
|
Aerospace &
technologies
|
221.7
|
|
217.5
|
|
683.5
|
|
675.0
|
Corporate and
intercompany eliminations
|
(2.2)
|
|
(1.3)
|
|
(10.4)
|
|
(8.3)
|
Net
sales
|
$ 2,238.9
|
|
$ 2,277.9
|
|
$ 6,537.6
|
|
$ 6,471.3
|
|
|
|
|
|
|
|
|
Earnings before
interest and taxes -
|
|
|
|
|
|
|
|
Metal beverage
packaging, Americas & Asia
|
$ 133.4
|
|
$ 134.8
|
|
$ 400.3
|
|
$ 364.5
|
Business
consolidation and other activities
|
(0.1)
|
|
(14.1)
|
|
1.7
|
|
(26.6)
|
Total metal beverage
packaging, Americas & Asia
|
133.3
|
|
120.7
|
|
402.0
|
|
337.9
|
|
|
|
|
|
|
|
|
Metal beverage
packaging, Europe
|
63.8
|
|
60.5
|
|
193.0
|
|
143.2
|
Business
consolidation and other activities
|
(4.3)
|
|
(1.7)
|
|
(6.6)
|
|
(4.6)
|
Total metal beverage
packaging, Europe
|
59.5
|
|
58.8
|
|
186.4
|
|
138.6
|
|
|
|
|
|
|
|
|
Metal food &
household products packaging
|
43.0
|
|
58.4
|
|
119.1
|
|
140.6
|
Business
consolidation and other activities
|
(4.5)
|
|
(28.9)
|
|
(11.6)
|
|
(57.4)
|
Total metal food
& household products packaging
|
38.5
|
|
29.5
|
|
107.5
|
|
83.2
|
|
|
|
|
|
|
|
|
Aerospace &
technologies
|
21.2
|
|
18.0
|
|
70.1
|
|
55.0
|
Business
consolidation and other activities
|
-
|
|
-
|
|
-
|
|
(0.2)
|
Total aerospace &
technologies
|
21.2
|
|
18.0
|
|
70.1
|
|
54.8
|
|
|
|
|
|
|
|
|
Segment earnings
before interest and taxes
|
252.5
|
|
227.0
|
|
766.0
|
|
614.5
|
|
|
|
|
|
|
|
|
Undistributed and
corporate expenses and intercompany eliminations, net
|
(24.2)
|
|
(16.3)
|
|
(63.4)
|
|
(56.1)
|
Business
consolidation and other activities
|
(0.3)
|
|
0.9
|
|
(1.3)
|
|
(0.3)
|
Total undistributed
and corporate expenses and intercompany eliminations, net
|
(24.5)
|
|
(15.4)
|
|
(64.7)
|
|
(56.4)
|
|
|
|
|
|
|
|
|
Earnings
before interest and taxes
|
$ 228.0
|
|
$ 211.6
|
|
$ 701.3
|
|
$ 558.1
|
Notes to the
Condensed Financial Statements (Third Quarter 2014)
|
|
2. Significant
Business Consolidation Activities and Other Noncomparable
Items
|
|
2014
|
|
Metal Beverage
Packaging, Americas and Asia
|
|
The first nine months
included charges of $2.0 million ($1.3 million after tax) related
to a fire at a metal beverage packaging, Americas facility. The
third quarter and first nine months also included net income of
$0.8 million ($0.3 million after tax) and net charges of $1.0
million ($0.7 million after tax), respectively, for ongoing costs
related to previously closed facilities and other insignificant
costs.
During the first quarter, the company received and recorded
compensation of $5.0 million ($3.7 million after tax) for the
reimbursement of severance costs incurred in connection with the
company's closure and relocation of the Shenzhen, China,
manufacturing facility in 2013. Also during the first quarter, the
company sold its plastic motor oil container and pail manufacturing
business in China. The third quarter and first nine months included
a loss of $1.1 million ($1.2 million after tax) and $0.3 million
($0.9 million after tax), respectively, in connection with the
sale.
|
|
Metal Food and
Household Products Packaging
|
|
In the third quarter,
the company recorded charges of $3.6 million ($2.2 million after
tax) related to a reduction in force to eliminate certain food can
production in the Oakdale, California, facility, as well as the
completion of a voluntary separation program. The third quarter and
first nine months also included charges of $0.8 million ($0.5
million after tax) and $4.1 million ($2.6 million after tax),
respectively, for ongoing costs related to previously closed
facilities and other insignificant costs.
During the fourth quarter of 2013, the company announced the
closure of its Danville, Illinois, steel aerosol packaging facility
in the second half of 2014. The first nine months of 2014 included
charges of $3.8 million ($2.4 million after tax) in connection with
the announced closure.
|
|
Metal Beverage
Packaging, Europe, and Corporate
|
|
The third quarter and
first nine months included charges of $0.9 million ($0.8 million
after tax) and $3.2 million ($2.9 million after tax), respectively,
for headcount reductions, cost-out initiatives and the relocation
of the company's European headquarters from Germany to Switzerland,
as well as additional tax expense of $1.9 million and $6.1 million,
respectively, related to this relocation. The third quarter and
first nine months also included charges of $3.7 million ($3.1
million after tax) and $4.7 million ($4.8 million after tax),
respectively, related to the write off of previously capitalized
costs associated with the company's Lublin, Poland, facility, and
for other insignificant activities.
|
|
In January, Ball
completed the redemption of its outstanding 7.375 percent senior
notes due in September 2019. The redemption of the bonds resulted
in a first quarter charge of $33.1 million ($20.6 million after
tax) for the call premium and the write off of unamortized
financing costs and premiums.
|
|
2013
|
|
In the third quarter,
the company recorded an accounts receivable provision of $27.0
million ($18.0 million after tax, or $0.12 per diluted share) as a
result of the financial difficulties of a significant customer.
This provision represented the company's estimate of the most
likely potential loss of value it expected to incur as a result of
the financial condition of this customer.
|
|
During July 2013, the
company signed a compensation agreement with the Chinese government
to vacate the Shenzhen manufacturing facility and relocate the
production equipment. The third quarter and first nine months
included charges of $6.8 million ($5.1 million after tax) and $8.1
million ($6.1 million after tax), respectively, for closure and
relocation costs, which were primarily reimbursed in the fourth
quarter 2013 and first quarter 2014.
|
|
In February 2013,
Ball announced the closure of its Elgin, Illinois, food and
household products packaging facility. The third quarter and first
nine months included charges of $1.9 million ($1.2 million after
tax) and $28.0 million ($17.0 million after tax), respectively, in
connection with the closure.
|
|
The third quarter and
first nine months included charges of $1.6 million ($1.0 million
after tax) and $8.7 million ($5.3 million after tax) to balance
regional supply and demand in Ball's metal beverage packaging,
Americas, operations. Additionally, the third quarter and first
nine months also included charges of $5.3 million ($3.2 million
after tax) and $8.4 million ($5.1 million after tax), respectively,
related to previously announced closures of Ball's Columbus, Ohio,
and Gainesville, Florida, metal beverage packaging, Americas,
facilities and related voluntary separation
programs.
|
Notes to the
Condensed Financial Statements (Third Quarter 2014)
|
|
|
|
|
|
|
|
|
|
2. Significant
Business Consolidation Activities and Other Noncomparable Items
(continued)
|
|
Other items in the
third quarter and first nine months included charges of $1.7
million ($1.4 million after tax) and $5.5 million ($4.3 million
after tax), for the third quarter 2012 relocation of the company's
European headquarters from Germany to Switzerland, as well as
additional tax expense of $2.0 million and $5.9 million,
respectively, related to this relocation. The second quarter and
first nine months also included a charge of $5.9 million ($3.6
million after tax) to migrate certain employees from a
multi-employer defined benefit pension plan to a Ball-sponsored
defined benefit pension plan. Additionally, the first six months
included income of $3.5 million ($2.1 million after tax) related to
the reimbursement of funds paid in 2012 for the settlement of
certain Canadian defined benefit pension liabilities of previously
closed facilities.
|
|
During the second
quarter, Ball issued $1 billion of 4.00 percent senior notes due in
November 2023 and tendered for the redemption of $375 million of
7.125 percent senior notes originally due in September 2016. The
redemption of the bonds, as well as the renegotiation of Ball's
bank credit facilities in June, resulted in a charge of $26.9
million ($16.3 million after tax) for the call premium and the
write off of unamortized financing costs and discounts.
|
|
|
|
|
|
|
|
|
|
A summary of
the effects of the above transactions on after-tax earnings is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
($ in millions,
except per share amounts)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Ball Corporation, as reported
|
$ 147.4
|
|
$ 115.2
|
|
$ 394.0
|
|
$ 282.3
|
|
Business
consolidation and other activities, net of tax
|
9.4
|
|
31.5
|
|
20.2
|
|
63.8
|
|
Debt refinancing
costs, net of tax
|
-
|
|
0.8
|
|
20.6
|
|
17.1
|
|
Discontinued
operations, net of tax
|
-
|
|
(0.3)
|
|
-
|
|
(0.4)
|
|
Net
earnings attributable to Ball Corporation before above transactions
(Comparable Net Earnings)
|
$ 156.8
|
|
$ 147.2
|
|
$ 434.8
|
|
$ 362.8
|
|
|
|
|
|
|
|
|
|
|
Per
diluted share before above transactions
|
$ 1.10
|
|
$ 1.00
|
|
$ 3.04
|
|
$ 2.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A summary of
the effects of the above transactions on earnings before interest
and taxes is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
($ in
millions)
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Earnings before
interest and taxes, as reported
|
$ 228.0
|
|
$ 211.6
|
|
$ 701.3
|
|
$ 558.1
|
|
Business
consolidation and other activities
|
9.2
|
|
43.8
|
|
17.8
|
|
89.1
|
|
EBIT before above transactions (Comparable EBIT)
|
$ 237.2
|
|
$ 255.4
|
|
$ 719.1
|
|
$ 647.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 this earnings release
and quarterly and annual regulatory filings.
|
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SOURCE Ball Corporation