Ball to Close Two Metal Beverage Packaging Plants
October 30 2008 - 8:00AM
PR Newswire (US)
BROOMFIELD, Colo., Oct. 30 /PRNewswire-FirstCall/ -- Ball
Corporation (NYSE:BLL) announced today that it plans to close its
metal beverage packaging manufacturing plants in Kansas City, Mo.,
and Guayama, Puerto Rico. As a result of the closures, an after-tax
charge of approximately $32 million will be recorded in the
company's results. Approximately $28 million of the charge is
expected to be recorded in the fourth quarter of 2008 with the
remainder recorded in the first quarter of 2009. Cost reductions
associated with the plant closings are expected to exceed $30
million in 2009 and to be $9 million cash positive on final
disposition of the assets. "The closure of these facilities will
further reduce 12-ounce can capacity in our metal beverage
packaging manufacturing system, more efficiently allocate
production and consolidate specialty can production into facilities
better located to serve our customer base," said John A. Hayes,
executive vice president and chief operating officer. The Kansas
City plant operates four production lines capable of making 1.1
billion cans in a variety of sizes and employs approximately 180
people. It is expected to close by the end of the first quarter of
2009, subject to customer requirements. The Guayama plant operates
one production line capable of making 700 million 12-ounce cans
annually and employs approximately 70 people. The plant is expected
to close by the end of 2008. The Kansas City plant opened in 1981
and the Guayama plant opened in 1982. Ball acquired both facilities
in 1998 as part of the acquisition of the metal beverage container
assets of Reynolds Metals Company. Ball Corporation is a supplier
of high-quality metal and plastic packaging for beverage, food and
household products customers, and of aerospace and other
technologies and services, primarily for the U.S. government. Ball
Corporation and its subsidiaries employ more than 15,000 people
worldwide and reported 2007 sales of approximately $7.4 billion.
For the latest Ball news and for other company information, please
visit http://www.ball.com/. Conference Call Details Ball
Corporation will hold its regular quarterly conference call on the
company's results and performance today at 9 a.m. Mountain Time (11
a.m. Eastern Time). The North American toll-free number for the
call is 800-768-3232. International callers should dial
212-231-2929. Please use the following URL for a Web cast of the
live call:
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=115234&eve
ntID=1987423 For those unable to listen to the live call, a taped
replay will be available after the call's conclusion until 1 p.m.
Eastern Time on Nov. 6, 2008. To access the replay, call
800-633-8284 (North American callers) or 402-977-9140
(international callers) and use reservation number 21395362. A
written transcript of the call will be posted within 48 hours of
the call's conclusion to Ball's Web site at http://www.ball.com/ in
the investors section under "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 are
intended to 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 99.2 in our Form 10-K, which are available at our
Web site and at http://www.sec.gov/. Factors that might affect our
packaging segments include fluctuation in product demand and
preferences; availability and cost of raw materials, including
recent significant increases in resin, steel, aluminum and energy
costs, and the ability to pass such increases on to customers;
competitive packaging availability, pricing and substitution;
changes in climate and weather; crop yields; competitive activity;
failure to achieve anticipated productivity improvements or
production cost reductions, including our beverage can end project;
mandatory deposit or other restrictive packaging laws; changes in
major customer or supplier contracts or loss of a major customer or
supplier; and changes in foreign exchange rates, tax rates and
activities of foreign subsidiaries. Factors that might affect our
aerospace segment include: funding, authorization, availability and
returns of government and commercial contracts; and delays,
extensions and technical uncertainties affecting segment contracts.
Factors that might affect the company as a whole include those
listed plus: accounting changes; changes in senior management; the
current global credit squeeze and its effects on liquidity, credit
risk, asset values and the economy; successful or unsuccessful
acquisitions, joint ventures or divestitures; integration of
recently acquired businesses; regulatory action or laws including
tax, environmental, health and workplace safety, including in
respect of chemicals or substances used in raw materials or in the
manufacturing process; governmental investigations; technological
developments and innovations; goodwill impairment; antitrust,
patent and other litigation; strikes; labor cost changes; rates of
return projected and earned on assets of the company's defined
benefit retirement plans; pension changes; reduced cash flow;
interest rates affecting our debt; and changes to unaudited results
due to statutory audits or other effects. DATASOURCE: Ball
Corporation CONTACT: Investors, Ann T. Scott, +1-303-460-3537, , or
Media, Scott McCarty, +1-303-460-2103, , both of Ball Corporation
Web Site:
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=115234&eventID=1987423
http://www.ball.com/
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