BROOMFIELD, Colo., Jan. 28 /PRNewswire-FirstCall/ -- Ball
Corporation (NYSE:BLL) today reported its full-year 2009 net
earnings of $387.9 million, or $4.08 per diluted share, on sales of
$7.35 billion, compared to $319.5 million, or $3.29 per diluted
share, on sales of $7.56 billion in 2008. Fourth quarter 2009 net
earnings were $81.4 million, or 85 cents per diluted share, on
sales of $1.86 billion, compared to $33.8 million, or 36 cents per
diluted share, on sales of $1.73 billion, in the fourth quarter of
2008. "On a comparable basis, our diluted earnings per share of 84
cents in the fourth quarter increased significantly over diluted
earnings per share of 56 cents in 2008, and Ball's 2009 full-year
comparable results of $4.05, compared to $3.61 in the prior year,
were a record for our company," said R. David Hoover, chairman and
chief executive officer. "Volume momentum improved sequentially in
the fourth quarter in our metal beverage and metal food and
household products businesses due largely to increased customer
promotional activity, and the four U.S. metal beverage packaging
plants acquired in October were accretive to earnings in the
quarter." Full-year 2009 and 2008 results include the effects of
business consolidation activities and related items. Details of the
comparable segment earnings can be found in Notes 1 and 2 to the
unaudited consolidated financial statements that accompany this
news release. "Prior cost-cutting actions from the rationalization
program that began in 2008, a disciplined approach to managing our
price/cost mix and excellent plant operating performance
contributed to improved 2009 results," said John A. Hayes,
president and chief operating officer for the corporation. "As we
continue the smooth integration of the plants acquired in 2009, it
is providing opportunities to improve our processes and share best
practices. We remain focused on continuing to build momentum in our
company." Metal Beverage Packaging, Americas & Asia Metal
beverage packaging, Americas and Asia, comparable segment operating
earnings were $296.0 million in 2009 on sales of $2.89 billion,
compared to $284.1 million in 2008 on sales of $2.99 billion. For
the fourth quarter, comparable earnings were $72.1 million on sales
of $812.9 million, compared to $55.7 million on sales of $684.7
million in 2008. Cost savings from prior plant rationalizations,
the positive impact of the acquired metal beverage packaging plants
and better plant efficiencies all contributed to improved results.
During the fourth quarter, Ball announced an agreement to acquire a
partner's interest in a joint venture metal beverage can and end
plant in southern China. The transaction is expected to close in
2010, subject to customary regulatory approvals. In Brazil, the
company's new joint venture beverage can plant near Rio de Janeiro
started up successfully in November and began supplying cans to
customers. Metal Beverage Packaging, Europe Metal beverage
packaging, Europe, segment results in 2009 were operating earnings
of $214.8 million on sales of $1.74 billion, compared to $230.9
million on sales of $1.87 billion in 2008. For the fourth quarter,
operating earnings in 2009 were $50.3 million on sales of $427.1
million, compared to $29.0 million on sales of $380.8 million in
the fourth quarter of 2008. Better results in the quarter were due
largely to strong cost containment measures and a favorable
currency conversion from a stronger euro to the U.S. dollar
compared to 2008. The company continues to manage its European
business to efficiently balance regional supply with customer
demand. Metal Food & Household Products Packaging, Americas
Metal food and household products packaging, Americas, comparable
segment results for 2009 were operating earnings of $130.8 million
on sales of $1.39 billion, compared to $68.1 million in 2008 on
sales of $1.22 billion. For the fourth quarter of 2009, comparable
segment results were operating earnings of $18.3 million on sales
of $326.4 million, compared to $23.2 million on sales of $309.4
million in the same period of 2008. The company's fourth quarter
2008 results benefited from significant pre-buying by customers
ahead of a 2009 steel price increase and the favorable resolution
of a $6.8 million claim recorded in the fourth quarter of 2008.
Exceptional plant performance, metal inventory holding gains, a
disciplined approach to cost recovery and cost savings stemming
from prior plant rationalizations all contributed to improved
full-year results. Plastic Packaging, Americas Plastic packaging,
Americas, comparable segment results for 2009 were operating
earnings of $16.3 million on sales of $634.9 million, compared to
$15.8 million on sales of $735.4 million in 2008. For the fourth
quarter, comparable segment results were operating earnings of $1.1
million on sales of $136.8 million, compared to breaking even in
the fourth quarter of 2008 on sales of $161.4 million. The segment
managed flat operating earnings in the quarter and for the full
year despite double-digit declines in volumes and related
production curtailments. During 2009 the company closed two, small
PET packaging plants and consolidated that business into larger
manufacturing facilities. Aerospace and Technologies Aerospace and
technologies comparable segment results were operating earnings of
$61.4 million on sales of $689.2 million in 2009, compared to $76.2
million on sales of $746.5 million in 2008. For the fourth quarter,
earnings were $15.8 million on sales of $161.2 million, compared to
$20.2 million on sales of $196.5 million in the quarter in 2008.
Backlog at the close of the year was $517.8 million. Pressure on
the U.S. federal budget has continued to slow the contract award
cycle on traditional space hardware programs, however, the number
of outstanding Ball Aerospace proposals increased in the second
half of the year. Increased demand for antenna and video
technologies and for information services to support defense
intelligence organizations contributed to second half results.
Outlook "We were pleased with our strong finish in 2009," Hoover
said. "While prior year inventory gains make beating last year's
first quarter earnings difficult, we expect full-year 2010 earnings
to be above those of 2009." In 2009, Ball generated $373 million in
free cash flow after an incremental pension contribution of $14
million. The company expects 2010 free cash flow of more than half
a billion dollars after capital spending of approximately $235
million. "After making a nearly $600 million acquisition, our net
debt increased by only $103 million year-over-year due to our
strong cash flow generation in 2009," said Scott C. Morrison,
senior vice president, chief financial officer and treasurer.
"Credit ratios at the end of the year were better than at the start
of 2009." 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 14,500 people worldwide and reported
2009 sales of more than $7.3 billion. Conference Call Details Ball
Corporation (NYSE:BLL) will hold its regular quarterly conference
call on the company's results and performance today at 8 a.m.
Mountain Time (10 a.m. Eastern Time).The North American toll-free
number for the call is 800-732-6870. International callers should
dial 212-231-2907. 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&eventID
=2639669. For those unable to listen to the live call, a taped
replay will be available after the call's conclusion until noon
Eastern Time on Feb. 4, 2010. To access the replay, call
800-633-8284 (North American callers) or 402-977-9140
(international callers) and use reservation number 21450837. 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; 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; 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 or tax
rates. 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 recession
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 climate change, or
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. Condensed Financials
(December 2009) ------------------------------------- Unaudited
Statements of Consolidated Earnings Three months ended Year ended
December 31, December 31, ($ in millions, except per share
------------ ------------ amounts) 2009 2008 2009 2008
----------------- -------- -------- -------- -------- Net sales
(Note 1) $1,864.4 $1,732.8 $7,345.3 $7,561.5 ------------------
-------- -------- -------- -------- Costs and expenses Cost of
sales (excluding depreciation) 1,556.1 1,484.3 6,071.5 6,340.4
Depreciation and amortization 78.7 72.7 285.2 297.4 Selling,
general and administrative 88.7 60.6 328.6 288.2 Business
consolidation and other activities (Note 2) (2.3) 31.5 44.5 52.1
Gain on dispositions (Note 2) (4.3) - (39.1) (7.1) ---- --- -----
---- 1,716.9 1,649.1 6,690.7 6,971.0
---------------------------------- ----- ---- ----- ----- Earnings
before interest and taxes (Note 1) 147.5 83.7 654.6 590.5
---------------------------- ----- ---- ----- ----- Total interest
expense (37.8) (33.7) (117.2) (137.7) Tax provision (34.0) (19.0)
(162.8) (147.4) Equity in results of affiliates 5.8 2.9 13.8 14.5
------------- ----- ----- ------ ------ Net earnings $81.5 $33.9
$388.4 $319.9 ------------- ----- ----- ------ ------ Less net
earnings attributable to noncontrolling interests (0.1) (0.1) (0.5)
(0.4) ---------------------------------- ----- ----- ------ ------
Net earnings attributable to Ball Corporation $81.4 $33.8 $387.9
$319.5 --------------------------------- ----- ----- ------ ------
Earnings per share (Note 2): Basic $0.87 $0.36 $4.14 $3.33 Diluted
$0.85 $0.36 $4.08 $3.29 Weighted average shares outstanding (000s):
Basic 93,851 94,022 93,786 95,857 Diluted 95,285 95,019 94,989
97,019 Condensed Financials (December 2009)
------------------------------------- Unaudited Statements of
Consolidated Cash Flows Three months ended Year ended December 31,
December 31, ------------ ------------ ($ in millions) 2009 2008
2009 2008 ---- ---- ---- ---- Cash Flows From Operating Activities:
Net earnings $81.5 $33.9 $388.4 $319.9 Depreciation and
amortization 78.7 72.7 285.2 297.4 Business consolidation and other
activities (Note 2) (6.4) 31.5 29.8 52.1 Gain on dispositions (Note
2) (4.3) - (39.1) (7.1) Income taxes (50.3) 11.4 (37.5) 27.1 Legal
settlement - - - (70.3) Other changes in working capital 447.2
332.7 (81.6) (16.8) Other 7.2 7.0 14.5 25.3 --- --- ---- ---- 553.6
489.2 559.7 627.6 ------------------------------------- ----- -----
----- ----- Cash Flows From Investing Activities: Additions to
property, plant and equipment (45.8) (76.1) (187.1) (306.9)
Business acquisition (Note 3) (574.7) - (574.7) - Proceeds from
dispositions (Note 2) 32.0 - 69.0 8.7 Cash collateral deposits, net
19.6 (105.5) 105.3 (105.5) Other 5.4 (24.1) 6.1 (14.3) --- -----
--- ----- (563.5) (205.7) (581.4) (418.0)
------------------------------------- ------ ------ ------ ------
Cash Flows From Financing Activities: Net change in borrowings
(183.8) (188.8) 147.9 127.3 Debt issuance costs (0.1) - (12.2) -
Purchases of common stock, net (7.3) (42.1) (5.1) (299.6) Dividends
(9.3) (9.2) (37.4) (37.5) Other 1.1 0.8 7.6 4.3 --- --- --- ---
(199.4) (239.3) 100.8 (205.5)
--------------------------------------- ------ ------ ----- ------
Effect of exchange rate changes on cash 1.8 (30.7) 4.1 (28.3)
Change in cash (207.5) 13.5 83.2 (24.2) Cash-beginning of period
418.1 113.9 127.4 151.6 ----- ----- ----- ----- Cash-end of period
$210.6 $127.4 $210.6 $127.4 ------------------ ====== ====== ======
====== Condensed Financials (December 2009)
------------------------------------- Unaudited Consolidated
Balance Sheets December 31, December 31, ($ in millions) 2009 2008
---- ---- Assets Current assets Cash and cash equivalents $210.6
$127.4 Receivables, net 548.2 507.9 Inventories, net 944.2 974.2
Cash collateral - receivable 14.2 229.5 Deferred taxes and other
current assets 206.1 326.3 ----- ----- Total current assets 1,923.3
2,165.3 Property, plant and equipment, net 1,949.0 1,866.9 Goodwill
2,114.8 1,825.5 Other assets, net 501.2 511.0 --------------
-------- -------- Total assets $6,488.3 $6,368.7 --------------
-------- -------- Liabilities and Shareholders' Equity Current
liabilities Short-term debt and current portion of long-term debt
$312.3 $303.0 Cash collateral - liability 14.2 124.0 Payables and
accrued liabilities 1,102.1 1,435.4 ------- ------- Total current
liabilities 1,428.6 1,862.4 Long-term debt 2,283.9 2,107.1 Other
long-term liabilities 1,192.8 1,311.9 Shareholders' equity 1,583.0
1,087.3 -------------------------------------------- --------
-------- Total liabilities and shareholders' equity $6,488.3
$6,368.7 -------------------------------------------- --------
-------- Unaudited Notes to Condensed Financials (December 2009)
-------------------------------------------------------- 1.
Business Segment Information Three months ended Year ended December
31, December 31, ------------ ------------ ($ in millions) 2009
2008 2009 2008 ---- ---- ---- ---- Sales- Metal beverage packaging,
Americas & Asia $812.9 $684.7 $2,888.8 $2,989.5 Metal beverage
packaging, Europe 427.1 380.8 1,739.5 1,868.7 Metal food &
household packaging, Americas 326.4 309.4 1,392.9 1,221.4 Plastic
packaging, Americas 136.8 161.4 634.9 735.4 Aerospace &
technologies 161.2 196.5 689.2 746.5 ----- ----- ----- ----- Net
sales $1,864.4 $1,732.8 $7,345.3 $7,561.5 ======== ========
======== ======== Earnings before interest and taxes- Metal
beverage packaging, Americas & Asia $72.1 $55.7 $296.0 $284.1
Business consolidation activities (Note 2) 2.5 (36.6) (6.8) (40.6)
--- ----- ---- ----- Total metal beverage packaging, Americas &
Asia 74.6 19.1 289.2 243.5 ---- ---- ----- ----- Metal beverage
packaging, Europe 50.3 29.0 214.8 230.9 ---- ---- ----- ----- Metal
food & household packaging, Americas 18.3 23.2 130.8 68.1
Business consolidation activities (Note 2) (2.6) 6.1 (2.6) 1.6 ----
--- ---- --- Total metal food & household packaging, Americas
15.7 29.3 128.2 69.7 ---- ---- ----- ---- Plastic packaging,
Americas 1.1 - 16.3 15.8 Business consolidation activities (Note 2)
0.7 - (23.8) (8.3) Gain on disposition (Note 2) 4.3 - 4.3 - --- ---
--- - Total plastic packaging, Americas 6.1 - (3.2) 7.5 --- ---
---- --- Aerospace & technologies 15.8 20.2 61.4 76.2 Gain on
disposition (Note 2) - - - 7.1 --- --- --- --- Total aerospace
& technologies 15.8 20.2 61.4 83.3 ---- ---- ---- ---- Segment
earnings before interest and taxes 162.5 97.6 690.4 634.9
Undistributed corporate costs, net (16.7) (12.9) (59.3) (39.6) Gain
on disposition (Note 2) - - 34.8 - Business consolidation and other
activities (Note 2) 1.7 (1.0) (11.3) (4.8) --- ---- ----- ----
Total undistributed corporate costs, net (15.0) (13.9) (35.8)
(44.4) ----- ----- ----- ----- Earnings before interest and taxes
$147.5 $83.7 $654.6 $590.5 ====== ===== ====== ====== Unaudited
Notes to Condensed Financials (December 2009)
-------------------------------------------------------- 2.
Business Consolidation Activities and Other Significant Items 2009
In the first quarter, a restructuring charge of $5 million ($3.1
million after tax) was recorded for accelerated depreciation in
connection with the closure of a North American metal beverage
plant. In the second quarter the following significant activities
occurred: -- The company recorded restructuring charges of $16.2
million ($9.8 million after tax) for the closure of two plastic
packaging manufacturing plants, administrative downsizing in our
North American metal beverage business and clean-up costs related
to previously closed and sold facilities. -- The company sold a
portion of its interest in DigitalGlobe for proceeds of
approximately $37 million. As a result of this transaction, a gain
of $34.8 million ($30.7 million after tax) was recorded in
corporate costs. -- The company recorded $2.9 million ($1.8 million
after tax) for transaction costs pertaining to the acquisition
discussed in Note 3. In the third quarter, restructuring charges of
$13.6 million ($8.8 million after tax) were recorded for
accelerated depreciation and other costs primarily related to the
closure of the two plastic manufacturing plants announced in the
second quarter. Also in the third quarter, an additional $9.1
million ($5.5 million after tax) of acquisition transaction costs
were recorded. In October the company sold a plastic pail
manufacturing plant located in Georgia for $32.6 million and
recorded a pretax gain of $4.3 million ($0.3 million loss after
tax) related to the sale. Also in the fourth quarter, a gain of
$2.1 million ($1.3 million after tax) was recorded primarily
related to the recovery of business consolidation costs previously
expensed for various plant closures. Total acquisition costs for
2009 were $11.8 million ($7.2 million after tax). See Note 3 for
further details on Ball's acquisitions. 2008 On October 30, 2008,
the company announced the closure of two North American metal
beverage can plants. A $41.7 million ($25.8 million after tax)
business consolidation charge was recorded in the fourth quarter,
primarily for employee severance costs, accelerated depreciation
and the write down of assets to net realizable value. A gain of
$10.2 million ($6.2 million after tax) was also recorded to reflect
the recovery of business consolidation costs previously expensed.
Cost reductions associated with these plant closings are expected
to be $7 million cash positive upon final disposition of the
assets. In prior quarters, charges totaling $20.6 million ($15.3
million after tax) were recorded for business consolidation
activities, primarily for the closure of a metal beverage packaging
plant in Kent, Wash., and a plastic packaging plant in Brampton,
Ontario. In addition, Ball Aerospace completed the sale of a
subsidiary for $10.5 million that resulted in a gain of $7.1
million ($4.4 million after tax). A summary of the effects of the
above transactions on after-tax earnings follows: Three months
ended Year ended December 31, December 31, ----------- ------------
($ in millions, except per share amounts) 2009 2008 2009 2008 ----
---- ---- ---- Net earnings as reported $81.4 $33.8 $387.9 $319.5
Business consolidation costs, net of tax (1.3) 19.6 20.4 34.9
(Gain) loss on dispositions, net of tax 0.3 - (30.4) (4.4)
Acquisition transaction costs, net of tax (0.1) - 7.2 - ---- ---
--- --- Net earnings before above transactions $80.3 $53.4 $385.1
$350.0 ===== ===== ====== ====== Per diluted share before above
transactions $0.84 $0.56 $4.05 $3.61 ===== ===== ===== ===== Ball's
management segregates the above items to evaluate the performance
of the company's operations. The information is presented on a
non-U.S. GAAP basis and should be considered in connection with the
unaudited statements of consolidated earnings. Non-U.S. GAAP
measures should not be considered in isolation and should not be
considered superior to, or a substitute for, financial measures
calculated in accordance with U.S. GAAP. 3. Acquisitions On October
1, 2009, the company acquired four plants from Anheuser-Busch InBev
for $577 million, subject to customary post-closing adjustments.
The plants consist of three beverage can manufacturing plants and
one beverage can end plant, all of which are located in the U.S.
These plants produce about 10 billion aluminum cans and 10 billion
easy-open can ends annually. Ball announced on November 9, 2009,
that it agreed to acquire Guangdong Jianlibao Group Co., Ltd.'s 65
percent interest in a joint venture metal beverage can and end
plant in Sanshui, China. Ball has owned 35 percent of the joint
venture since 1992. Ball will acquire the plant and related assets
for approximately $90 million in cash and assumed debt. The
transaction is expected to close in 2010, subject to customary
regulatory approvals. 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://www.ball.com/
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