BROOMFIELD, Colo., July 29 /PRNewswire-FirstCall/ --
Highlights
- 2Q comparable earnings per diluted share from continuing
operations of $1.38, exceeding prior
year's comparable earnings from continuing operations of
$1.14
- Sale of plastic packaging business announced in June; segment
results reported in discontinued operations
- Global demand for Ball's metal containers increasing across the
company's packaging businesses
- Cash flow still expected to be approximately $500 million, excluding change in accounting for
securitization
- Company's full-year 2010 share repurchase program expected to
exceed $400 million
Summary*
|
|
|
|
|
|
Second Quarter
|
|
|
$in millions, except per share
data
|
2010
|
2009
|
Change
|
|
Total net sales -
Reported
|
$2,007.5
|
$1,744.6
|
$262.9
|
|
Net earnings from continuing
operations - Reported
|
144.6
|
134.9
|
9.7
|
|
Diluted EPS –
Reported
|
1.55
|
1.42
|
0.13
|
|
Comparable net
earnings
|
128.8
|
108.6
|
20.2
|
|
Comparable diluted
EPS
|
1.38
|
1.14
|
0.24
|
|
* Ball Corporation's financial
results for 2010 and 2009 are presented on both a GAAP and a
non-GAAP (comparable) basis. Reported results were prepared in
accordance with generally accepted U.S. accounting principles
(GAAP). Non-GAAP (comparable) net earnings exclude items described
in more detail in the accompanying notes to the unaudited condensed
consolidated financial statements.
|
|
|
|
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|
Ball Corporation (NYSE: BLL) today reported second quarter net
earnings from continuing operations of $144.6 million, or $1.55 per diluted share, on sales of $2 billion, compared to $134.9 million, or $1.42 per diluted share, on sales of $1.7 billion in the second quarter of 2009.
Results from continuing operations for the first six months
of 2010 were net earnings of $227.0
million, or $2.42 per diluted
share, on sales of $3.6 billion,
compared to $201.5 million, or
$2.13 per diluted share, on sales of
$3.2 billion in the first six months
of 2009. Comparable 2010 earnings per diluted share for the second
quarter and year-to-date were $1.38
and $2.25 respectively, versus second
quarter and year-to-date 2009 earnings per diluted share of
$1.14 and $1.88, respectively.
"On a comparable basis, our strong diluted earnings per share
from continuing operations of $1.38
in the second quarter improved more than 20 percent over the same
period in 2009 due to increasing volumes in all of our packaging
businesses, the impact of the acquisition late last year of four
U.S. metal beverage packaging plants and solid performance from our
aerospace segment," said R. David
Hoover, chairman and chief executive officer. "The strategic
actions we have taken during the past several months – acquiring
the remaining interest in our former joint venture plant in
China, exiting the plastic
packaging business, the acquisition this week of Neuman Aluminum
and increasing the size of our stock buyback program – are
consistent with our primary goal of generating value for our
shareholders and are expected to continue to contribute to improved
results."
Second quarter 2010 results from continuing operations include
equity earnings and a gain of $22.1
million, or 24 cents per
diluted share, on the company's previous ownership interest in the
former joint venture beverage can plant in China that Ball acquired during the quarter,
and after-tax charges totaling $6.3
million, or 7 cents per
diluted share, associated with business consolidation activities
and debt extinguishment of senior notes that were due in 2012.
Details of comparable segment earnings and business
consolidation activities can be found in Notes 2 and 3 to the
unaudited consolidated financial statements that accompany this
news release.
The company announced on June 15
an agreement to sell its plastic packaging business, and the
related earnings from this business are reported in discontinued
operations in the financial information included with this news
release. For the second quarter and first six months of 2010,
diluted earnings per share from discontinued operations were a loss
of $75.6 million, or 81 cents per diluted share, and a loss of
$78.7 million, or 84 cents per diluted share, respectively,
primarily the result of a goodwill impairment due to the
announcement in June of the sale of the company's plastic packaging
business. The sale is anticipated to be complete during the third
quarter.
"Executing on our strategic initiatives has enabled us to refine
our company's product portfolio, improve operating performance and
meet the growing worldwide demand for metal packaging by our
customers," said John A. Hayes,
president and chief operating officer for the corporation.
"Double-digit volume growth continues in China and Brazil, and as overall metal packaging trends
improve we continue to monitor global opportunities for disciplined
growth."
Metal Beverage Packaging, Americas & Asia
Metal beverage packaging, Americas and Asia, comparable segment operating earnings
were $114.5 million in the second
quarter on sales of $1 billion,
compared to $74.8 million on sales of
$749.1 million in the second quarter
of 2009. For the first six months, comparable segment operating
earnings were $188.5 million on sales
of $1.8 billion, compared to
$121 million on sales of $1.4 billion during the same period in 2009.
The addition of the four U.S. metal beverage packaging plants
acquired in October 2009, increased
retail promotion of carbonated soft drinks and strong demand for
specialty can sizes drove volume improvement. Double-digit volume
growth in China and Brazil also contributed to better segment
results and equity earnings in the quarter.
Metal Beverage Packaging, Europe
Metal beverage packaging, Europe, segment results in the quarter were
operating earnings of $72.5 million
on sales of $479.3 million, compared
to $64.8 million on sales of
$490.6 million in 2009. Results for
the first six months were operating earnings of $107.5 million on sales of $846.8 million, compared to $95.7 million on sales of $834.4 million in 2009. Segment results improved
due primarily to increased volumes, growth in specialty cans and
exceptional operating performance, which were offset slightly by
unfavorable currency exchange rates.
During the second quarter, several discounters in Germany began relisting beverage cans in their
stores, helping to increase year-to-date can sales in that country
by more than 30 percent. While this increase came on a small
base, the development is an encouraging sign for the return of the
German can market.
Metal Food & Household Products Packaging,
Americas
Metal food and household products packaging, Americas, segment
results in the quarter were operating earnings of $33.4 million on sales of $312 million, compared to $35.1 million in 2009 on sales of $323.4 million. Year-to-date results were
operating earnings of $55.1 million
on sales of $597.4 million, compared
to $84.7 million in 2009 on sales of
$607 million in 2009.
Increased demand year-over-year, particularly for aerosol
packaging, and a better price/cost mix nearly offset the absence of
inventory holding gains that occurred in the second quarter of
2009. After the quarter ended, Ball acquired Neuman Aluminum, the
leading North American manufacturer of aluminum slugs used to make
extruded aerosol cans, beverage bottles, aluminum collapsible tubes
and technical impact extrusions.
Aerospace and Technologies
Aerospace and technologies segment results were operating
earnings of $18.6 million on sales of
$180.2 million in the second quarter,
compared to $14.8 million on sales of
$181.5 million in 2009. For the first
six months, operating earnings were $32.1
million on sales of $345.2
million compared to $29.4
million on sales of $359.6
million during the same period last year. Backlog at the end
of the quarter was $539 million.
Segment results were stronger than expected and the contract
award environment continued to improve. Full-year results, however,
are expected to be slightly less than those in 2009.
Outlook
"Proceeds from the sale of Ball's plastic packaging business and
the company's continued strong free cash flow will facilitate our
expanded share repurchase program," said Scott C. Morrison, senior vice president and
chief financial officer. "Excluding the change in accounting for
securitization, we currently expect full-year free cash flow to be
approximately $500 million, and plan
to repurchase in excess of $400
million of our stock in 2010."
"The company's strong performance during the first half of the
year reflects our disciplined financial strategy to grow earnings
per share over time, to improve returns on invested capital and to
generate significant free cash flow," Hoover said. "As demand for
our packaging products increases and we benefit from our previous
strategic actions, we expect the momentum in our business to
continue and our second half performance from continuing operations
should exceed that of 2009."
Ball Corporation is a supplier of high-quality 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
14,000 people worldwide and reported 2009 sales of more than
$7.3 billion including discontinued
operations. For the latest Ball news and for other company
information, please visit www.ball.com.
Conference Call Details
Ball Corporation will hold its regular quarterly conference call
on the company's results and performance on Thursday, July 29, 2010, at 9 a.m. Mountain Time (11
a.m. Eastern). The North American toll-free number for the
call is 800-732-5617. International callers should dial
212-231-2900. Please use the following URL for a webcast of the
live call:
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=115234&eventID=3183780
For those unable to listen to the live call, a taped replay will
be available after the call's conclusion until 11 a.m. Mountain Time (1
p.m. Eastern) on Aug. 5, 2010.
To access the replay, call 800-633-8284 (North American callers) or
402-977-9140 (international callers) and use reservation number
21474804. A written transcript of the call will be posted within 48
hours of the call's conclusion to Ball's Web site at 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
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 (June
2010)
|
|
Unaudited Statements of
Consolidated Earnings
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
($ in millions, except per share
amounts)
|
|
June 27, 2010
|
|
June 28, 2009
|
|
June 27, 2010
|
|
June 28, 2009
|
|
Net sales
(Note 2)
|
|
$
2,007.5
|
|
$
1,744.6
|
|
$
3,599.8
|
|
$
3,170.5
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
Cost of sales (excluding
depreciation)
|
|
1,643.1
|
|
1,436.1
|
|
2,961.3
|
|
2,610.4
|
|
Depreciation and
amortization
|
|
62.4
|
|
58.6
|
|
125.1
|
|
114.4
|
|
Selling, general and
administrative
|
|
77.6
|
|
72.9
|
|
156.9
|
|
141.9
|
|
Business consolidation
and other activities (Note 3)
|
|
2.3
|
|
7.2
|
|
1.8
|
|
12.2
|
|
Gain on disposition (Note
3)
|
|
-
|
|
(34.8)
|
|
-
|
|
(34.8)
|
|
|
|
1,785.4
|
|
1,540.0
|
|
3,245.1
|
|
2,844.1
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest and
taxes (Note 2)
|
|
222.1
|
|
204.6
|
|
354.7
|
|
326.4
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(36.6)
|
|
(24.7)
|
|
(70.5)
|
|
(50.5)
|
|
Debt refinancing costs (Note
3)
|
|
(8.1)
|
|
-
|
|
(8.1)
|
|
-
|
|
Total interest
expense
|
|
(44.7)
|
|
(24.7)
|
|
(78.6)
|
|
(50.5)
|
|
Tax provision
|
|
(60.8)
|
|
(50.0)
|
|
(81.7)
|
|
(76.6)
|
|
Equity in results of affiliates
(Note 3)
|
|
28.0
|
|
5.2
|
|
32.7
|
|
2.5
|
|
Less net earnings attributable
to noncontrolling interests
|
|
-
|
|
(0.2)
|
|
(0.1)
|
|
(0.3)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from continuing
operations
|
|
144.6
|
|
134.9
|
|
227.0
|
|
201.5
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net of
tax (Notes 1 and 3)
|
|
(75.6)
|
|
(1.6)
|
|
(78.7)
|
|
1.3
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to
Ball Corporation
|
|
$
69.0
|
|
$
133.3
|
|
$
148.3
|
|
$
202.8
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (Note
3):
|
|
|
|
|
|
|
|
|
|
Basic - continuing
operations
|
|
$
1.57
|
|
$
1.44
|
|
$
2.45
|
|
$
2.16
|
|
Basic -
discontinued operations
|
|
(0.82)
|
|
(0.02)
|
|
(0.85)
|
|
0.01
|
|
Total basic
earnings per share
|
|
$
0.75
|
|
$
1.42
|
|
$
1.60
|
|
$
2.17
|
|
|
|
|
|
|
|
|
|
|
|
Diluted -
continuing operations
|
|
$
1.55
|
|
$
1.42
|
|
$
2.42
|
|
$
2.13
|
|
Diluted -
discontinued operations
|
|
(0.81)
|
|
(0.02)
|
|
(0.84)
|
|
0.01
|
|
Total
diluted earnings per share
|
|
$
0.74
|
|
$
1.40
|
|
$
1.58
|
|
$
2.14
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding (000s):
|
|
|
|
|
|
|
|
|
|
Basic
|
|
92,100
|
|
93,763
|
|
92,566
|
|
93,655
|
|
Diluted
|
|
93,459
|
|
94,981
|
|
93,916
|
|
94,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Financials (June
2010)
|
|
Unaudited Statements of
Consolidated Cash Flows
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
|
($ in millions)
|
|
June 27, 2010
|
|
June 28, 2009
|
|
Cash Flows From Operating
Activities:
|
|
|
|
|
|
Net earnings
|
|
$
148.4
|
|
$
203.1
|
|
Discontinued operations,
net of tax
|
|
78.7
|
|
(1.3)
|
|
Depreciation and
amortization
|
|
125.1
|
|
114.4
|
|
Gain and equity earnings
related to acquisition (Note 3)
|
|
(22.1)
|
|
-
|
|
Gain on sale of
investment (Note 3)
|
|
-
|
|
(34.8)
|
|
Income taxes
|
|
(7.7)
|
|
6.1
|
|
Increase in accounts
receivable due to change in
|
|
|
|
|
|
accounting
for securitization program
|
|
(250.0)
|
|
-
|
|
Other changes in working
capital
|
|
(111.4)
|
|
(357.8)
|
|
Other
|
|
47.8
|
|
30.7
|
|
Cash
provided by (used in) continuing operating activities
|
|
8.8
|
|
(39.6)
|
|
Cash
provided by discontinued operating activities
|
|
21.9
|
|
48.8
|
|
|
|
30.7
|
|
9.2
|
|
Cash Flows From Investing
Activities:
|
|
|
|
|
|
Additions to property,
plant and equipment
|
|
(69.1)
|
|
(91.7)
|
|
Acquisition of equity
affiliate (Note 3)
|
|
(89.2)
|
|
-
|
|
Cash collateral deposits,
net
|
|
0.3
|
|
54.7
|
|
Proceeds from sale of
investment (Note 3)
|
|
-
|
|
37.0
|
|
Other
|
|
(10.5)
|
|
(2.6)
|
|
Cash used in
continuing investing activities
|
|
(168.5)
|
|
(2.6)
|
|
Cash used in
discontinued investing activities
|
|
(7.4)
|
|
(14.5)
|
|
|
|
(175.9)
|
|
(17.1)
|
|
Cash Flows From Financing
Activities:
|
|
|
|
|
|
Increase in short-term
borrowings due to change in
|
|
|
|
|
|
accounting
for securitization program
|
|
60.0
|
|
-
|
|
Other changes in
borrowings, net
|
|
120.7
|
|
(58.0)
|
|
Dividends
|
|
(18.3)
|
|
(18.7)
|
|
Issuances (purchases) of
common stock, net
|
|
(141.1)
|
|
11.0
|
|
Other
|
|
(9.3)
|
|
2.9
|
|
Cash
provided by (used in) continuing financing activities
|
|
12.0
|
|
(62.8)
|
|
Effect of exchange rate changes
on cash
|
|
(2.4)
|
|
2.8
|
|
Change in cash
|
|
(135.6)
|
|
(67.9)
|
|
Cash-beginning of
period
|
|
210.6
|
|
127.4
|
|
Cash-end of
period
|
|
$
75.0
|
|
$
59.5
|
|
|
|
|
|
|
Condensed Financials (June
2010)
|
|
Unaudited Consolidated Balance
Sheets
|
|
|
|
|
|
|
($ in millions)
|
June 27, 2010
|
|
June 28, 2009
|
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash
equivalents
|
$
75.0
|
|
$
59.5
|
|
Receivables,
net
|
1,062.9
|
|
744.1
|
|
Inventories,
net
|
876.2
|
|
918.1
|
|
Cash collateral -
receivable
|
11.3
|
|
119.4
|
|
Deferred taxes and other
current assets
|
196.9
|
|
257.6
|
|
Assets held for
sale
|
327.6
|
|
489.3
|
|
Total current assets
|
2,549.9
|
|
2,588.0
|
|
Property, plant and equipment,
net
|
1,656.3
|
|
1,600.3
|
|
Goodwill
|
1,887.6
|
|
1,708.1
|
|
Other assets, net
|
524.5
|
|
410.2
|
|
|
|
|
|
|
Total
assets
|
$
6,618.3
|
|
$
6,306.6
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
550.7
|
|
$
359.3
|
|
Cash collateral -
liability
|
11.5
|
|
69.5
|
|
Payables and accrued
liabilities
|
1,249.7
|
|
1,225.7
|
|
Total liabilities held
for sale
|
68.8
|
|
93.9
|
|
Total current liabilities
|
1,880.7
|
|
1,748.4
|
|
Long-term debt
|
2,157.1
|
|
2,014.0
|
|
Other long-term
liabilities
|
1,134.1
|
|
1,234.5
|
|
Shareholders'
equity
|
1,446.4
|
|
1,309.7
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
6,618.3
|
|
$
6,306.6
|
|
|
|
|
|
Notes to Condensed Financials
(June 2010)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Changes in Presentation for
Discontinued Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On June 15, 2010, the company
announced that it had entered into an agreement to sell its plastic
packaging, Americas, business to Amcor Limited for approximately
$265 million in cash and $15 million in contingent consideration,
subject to customary closing adjustments. The sale of Ball's
plastic packaging business includes five U.S. plants that
manufacture polyethylene terephthalate (PET) bottles and preforms
and polypropylene bottles, as well as associated customer contracts
and other related assets. In accordance with the accounting
guidance for discontinued operations, the company's consolidated
financial statements have been retrospectively adjusted to reflect
the pending sale of the operations and the change in the company's
reportable segments. Additionally, according to the accounting
guidance for discontinued operations, $0.6 million and $1.2 million
of indirect costs previously allocated to the plastic packaging,
Americas, segment have been included in undistributed corporate
costs for the three and six months ended June 27, 2010,
respectively; and $0.8 million and $1.6 million have been included
for the three and six months ended June 28, 2009, respectively.
Further details of the sale are included in Note 3.
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|
|
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|
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2. Business Segment
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
($ in millions)
|
|
June 27, 2010
|
|
June 28, 2009
|
|
June 27, 2010
|
|
June 28, 2009
|
|
Sales-
|
|
|
|
|
|
|
|
|
|
|
Metal beverage packaging,
Americas & Asia
|
|
$
1,036.0
|
|
$
749.1
|
|
$
1,810.4
|
|
$
1,369.5
|
|
|
Metal beverage packaging,
Europe
|
|
479.3
|
|
490.6
|
|
846.8
|
|
834.4
|
|
|
Metal food & household
packaging, Americas
|
|
312.0
|
|
323.4
|
|
597.4
|
|
607.0
|
|
|
Aerospace &
technologies
|
|
180.2
|
|
181.5
|
|
345.2
|
|
359.6
|
|
|
|
Net
sales
|
|
$
2,007.5
|
|
$
1,744.6
|
|
$
3,599.8
|
|
$
3,170.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest and
taxes-
|
|
|
|
|
|
|
|
|
|
|
Metal beverage packaging,
Americas & Asia
|
|
$
114.5
|
|
$
74.8
|
|
$
188.5
|
|
$
121.0
|
|
|
Business consolidation
activities (Note 3)
|
|
0.8
|
|
(3.3)
|
|
1.3
|
|
(8.3)
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|
|
|
Total metal beverage packaging,
Americas & Asia
|
|
115.3
|
|
71.5
|
|
189.8
|
|
112.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metal beverage packaging,
Europe
|
|
72.5
|
|
64.8
|
|
107.5
|
|
95.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metal food & household
packaging, Americas
|
|
33.4
|
|
35.1
|
|
55.1
|
|
84.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace &
technologies
|
|
18.6
|
|
14.8
|
|
32.1
|
|
29.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment earnings before interest
and taxes
|
|
239.8
|
|
186.2
|
|
384.5
|
|
322.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Undistributed corporate costs,
net
|
|
(14.6)
|
|
(12.5)
|
|
(26.7)
|
|
(27.0)
|
|
|
Gain on sale of investment (Note
3)
|
|
-
|
|
34.8
|
|
-
|
|
34.8
|
|
|
Business consolidation and other
activities (Note 3)
|
|
(3.1)
|
|
(3.9)
|
|
(3.1)
|
|
(3.9)
|
|
|
|
Total undistributed corporate
costs, net
|
|
(17.7)
|
|
18.4
|
|
(29.8)
|
|
3.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
interest and taxes
|
|
222.1
|
|
204.6
|
|
354.7
|
|
326.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(44.7)
|
|
(24.7)
|
|
(78.6)
|
|
(50.5)
|
|
Tax provision
|
|
(60.8)
|
|
(50.0)
|
|
(81.7)
|
|
(76.6)
|
|
Net earnings attributable to
noncontrolling interests
|
|
-
|
|
(0.2)
|
|
(0.1)
|
|
(0.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in results of
affiliates
|
|
5.9
|
|
5.2
|
|
10.6
|
|
2.5
|
|
Gain and equity earnings related
to acquisition (Note 3)
|
|
22.1
|
|
-
|
|
22.1
|
|
-
|
|
|
Total equity in results of
affiliates
|
|
28.0
|
|
5.2
|
|
32.7
|
|
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from continuing
operations
|
|
$
144.6
|
|
$
134.9
|
|
$
227.0
|
|
$
201.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes to Condensed Financials
(June 2010)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3. Business Consolidation
Activities and Other Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
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|
|
Net earnings of $0.5 million
($0.3 million after tax) and $0.8 million ($0.5 million after tax)
were recorded in the first and second quarters of 2010,
respectively, to reflect individually insignificant costs and gains
primarily related to previously announced plant closures. In
addition, the second quarter of 2010 included a charge of $3.1
million ($1.9 million after tax) to establish a reserve associated
with an environmental matter at a previously owned
facility.
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|
|
On April 21, 2010, Ball
redeemed senior notes due December 2012, which resulted in a charge
of $8.1 million ($4.9 million after tax) for the related
call premium and write off of unamortized financing costs and
unamortized premiums.
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|
|
|
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|
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|
As discussed in Note 1, on June
15, 2010, the company entered into an agreement to sell its plastic
packaging, Americas, business. In connection with the pending sale,
the company has reported discontinued operations as summarized in
the following table.
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|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
($ in millions)
|
June 27, 2010
|
|
June 28, 2009
|
|
June 27, 2010
|
|
June 28, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
149.3
|
|
$
181.6
|
|
$
263.2
|
|
$
341.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
operations
|
$
3.4
|
|
$
8.7
|
|
$
1.4
|
|
$
13.1
|
|
|
Impairment loss
|
(107.1)
|
|
-
|
|
(107.1)
|
|
-
|
|
|
Business consolidation
activities
|
(4.4)
|
|
(11.9)
|
|
(7.3)
|
|
(11.9)
|
|
|
Tax benefit
|
32.5
|
|
1.6
|
|
34.3
|
|
0.1
|
|
|
Discontinued operations,
net of tax
|
$
(75.6)
|
|
$
(1.6)
|
|
$
(78.7)
|
|
$
1.3
|
|
|
|
|
|
|
|
|
|
|
|
Also on June 15, 2010, the
company acquired Guangdong Jianlibao Group Co., Ltd's (Jianlibao)
65-percent interest in a joint venture metal beverage can and end
plant in Sanshui, PRC. Ball has owned 35 percent of the joint
venture plant since 1992. Ball acquired the plant and related
assets for $89.2 million in cash (net of cash acquired) and assumed
debt and also entered into a long-term supply agreement with
Jianlibao and one of its affiliates. As a result of the
required purchase accounting, the company recorded a gain in equity
earnings of $22.1 million.
|
|
|
|
|
|
|
|
|
|
|
|
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, restructuring charges of $4.3 million ($2.6 million after
tax) for administrative downsizing in our North American metal
beverage business and clean-up costs related to previously closed
and sold facilities. In addition, the company recorded $2.9 million
($1.8 million after tax) for transaction costs related to an
acquisition that was finalized in the fourth quarter.
|
|
|
|
|
|
|
|
|
|
|
|
Also during the second quarter,
the company sold a portion of its interest in DigitalGlobe for
proceeds of approximately $37 million. As a result of this
transacation, a gain of $34.8 million ($30.7 million after tax) was
recorded in corporate costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A summary of the effects of the
above transactions on after-tax earnings
follows:
|
|
|
|
|
|
|
|
Three months ended
|
|
Six months ended
|
|
|
($ in millions, except per share
amounts)
|
June 27, 2010
|
|
June 28, 2009
|
|
June 27, 2010
|
|
June 28, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings as
reported
|
$
69.0
|
|
$
133.3
|
|
$
148.3
|
|
$
202.8
|
|
|
Discontinued operations, net of
tax
|
75.6
|
|
1.6
|
|
78.7
|
|
(1.3)
|
|
|
Business consolidation
activities, net of tax
|
1.4
|
|
4.4
|
|
1.1
|
|
7.5
|
|
|
Gain and equity earnings related
to acquisition, net of tax
|
(22.1)
|
|
-
|
|
(22.1)
|
|
-
|
|
|
Gain on disposition, net of
tax
|
-
|
|
(30.7)
|
|
-
|
|
(30.7)
|
|
|
Debt refinancing costs, net of
tax
|
4.9
|
|
-
|
|
4.9
|
|
-
|
|
|
Net earnings before above
transactions
|
$
128.8
|
|
$
108.6
|
|
$
210.9
|
|
$
178.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Per diluted share before
above transactions
|
$
1.38
|
|
$
1.14
|
|
$
2.25
|
|
$
1.88
|
|
|
|
|
|
|
|
|
|
|
|
Ball's management segregates the
above items to evaluate the performance of the company's continuing
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.
|
|
|
|
|
|
|
|
|
|
|
SOURCE Ball Corporation