BROOMFIELD, Colo., Oct. 28 /PRNewswire-FirstCall/ --
Highlights
- 3Q comparable earnings per
diluted share from continuing operations of $1.40 versus $1.21 last
year, an increase of approximately 16 percent
- Strong performance throughout
the company's various packaging operations
- Improved aerospace segment
results due to excellent program performance
- Aerospace backlog increased to
$852 million, up from $539 million at the end of the second
quarter
- Full-year free cash flow
expected to be at least $500 million, excluding change in
accounting for receivables securitization
- Company on target to repurchase
more than $400 million in stock in 2010
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Summary*
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Third
Quarter
|
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$ in millions, except per share
data
|
2010
|
2009
|
%
Increase
|
|
Total net sales –
Reported
|
$2,035.0
|
$1,812.3
|
12%
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|
Comparable EBIT
|
221.5
|
197.6
|
12%
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|
Comparable net earnings
|
127.7
|
115.0
|
11%
|
|
Comparable diluted
EPS
|
1.40
|
1.21
|
16%
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* 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 third quarter net
earnings from continuing operations of $222.2 million, or $2.44 per diluted share, on sales of
$2 billion, compared to $108.9 million, or $1.14
cents per diluted share, on sales of $1.8 billion in the third quarter of 2009.
On a comparable basis, Ball's third quarter results were net
earnings of $127.7 million, or
$1.40 per diluted share, compared to
$115.0 million, or $1.21 per diluted share, in the third quarter of
2009.
Results from continuing operations for the first nine months of
2010 were net earnings of $449.2
million, or $4.84 per diluted
share, on sales of $5.6 billion,
compared to $310.4 million, or
$3.27 per diluted share, on sales of
$5 billion in the first nine months
of 2009. On a comparable basis, Ball's year-to-date results were
net earnings of $338.6 million, or
$3.64 per diluted
share, compared to $293.3
million, or $3.09 per diluted
share, in 2009.
"On a comparable basis, our diluted earnings per share from
continuing operations of $1.40 and
$3.64 for the third quarter and
year-to-date improved approximately 16 and 18 percent,
respectively, over the same periods in 2009, continuing the
company's strong performance in 2010," said R. David Hoover, chairman and chief executive
officer. "Excellent operating performance within our various
packaging businesses and strong program performance by our
aerospace segment contributed to improved year-over-year
results."
Third quarter results from continuing operations include a gain
of $81.8 million, or 90 cents per diluted share, recorded in equity
earnings on the company's ownership in Latapack-Ball Embalagens
Ltda. (Latapack-Ball), a beverage can joint venture in Brazil, due to the consolidation of
Latapack-Ball in the third quarter of 2010 as a result of the
company's acquisition of an additional 10.1 percent economic
interest in the joint venture. Latapack-Ball's results and all
related purchase accounting effects are now included in the
company's metal beverage, Americas and Asia, segment. 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.
"During the quarter, Ball completed the sale of the company's
plastic packaging business, increased our investment in the growing
Brazilian market, initiated the consolidation of our salmon can
production capacity, acquired a metal packaging-related business to
expand our product portfolio and was awarded significant new
contracts in our aerospace business," said John A. Hayes, president and chief operating
officer for the corporation. "The strategic actions taken by the
company broadened our metal packaging profile and we continue to
evaluate opportunities around the world."
Metal Beverage Packaging, Americas & Asia
Metal beverage packaging, Americas and Asia, segment comparable operating earnings
were $112.8 million in the third
quarter on sales of $1 billion,
compared to $102.9 million on sales
of $706.4 million in the third
quarter of 2009. For the first nine months, comparable segment
operating earnings were $301.3
million on sales of $2.8
billion, compared to $223.9
million on sales of $2.1
billion during the same period in 2009.
During the quarter, Ball acquired an additional 10.1 percent
economic interest in Latapack-Ball that increased Ball's overall
economic interest in the joint venture to 60.1 percent. Continued
strong volumes in China and
Brazil and increased demand for
specialty cans in North America
benefited segment results, while certain one-time costs and the
impacts of consolidating Latapack-Ball reduced margins. Ball
announced in October plans to install a second production line in
North America to make Alumi-Tek®
bottles. Ball's Golden, Colo.,
manufacturing plant is expected to begin making the fully
reclosable and recyclable bottles in the second half of 2011.
Metal Beverage Packaging, Europe
Metal beverage packaging, Europe, segment results in the quarter were
operating earnings of $63.1 million
on sales of $442.3 million, compared
to $68.8 million on sales of
$478 million in 2009. Results for the
first nine months were operating earnings of $170.6 million on sales of $1.3 billion, compared to $164.5 million on sales of $1.3 billion in 2009. Effective cost controls,
continued focus on balancing supply with demand and improved
volumes were more than offset by a 10 percent decline in currency
translation in the quarter. The recovery of the German beverage can
market continues to progress.
Metal Food & Household Products Packaging,
Americas
Metal food and household products packaging, Americas, segment
comparable results in the third quarter were operating earnings of
$49.4 million on sales of
$420.1 million, compared to
$27.8 million in 2009 on sales of
$459.5 million. Year-to-date results
were operating earnings of $104.5
million on sales of $1
billion, compared to $112.5
million in 2009 on sales of $1.1
billion. Strong aerosol volumes and excellent operating
performance in the quarter were partially offset by an early end to
the fruit and vegetable pack in the Midwest.
Ball announced in September plans to consolidate the company's
salmon can production and close a plant in Richmond, British Columbia, by the end of the
first quarter of 2011. After the final disposition of the land and
building, the closure is expected to be cash positive by
approximately $8 million. Also during
the third quarter, the company successfully completed the
acquisition of Neuman Aluminum, the largest North American producer
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 $18.4 million on sales of
$167.9 million in the third quarter,
compared to $16.2 million on sales of
$168.4 million in 2009. For the first
nine months, operating earnings were $50.5
million on sales of $513.1
million compared to $45.6
million on sales of $528
million during the same period last year. Strong program
performance and program completion awards contributed to improved
results. Backlog at the end of the quarter was $852 million.
During the third quarter, Ball Aerospace was selected to build
WorldView-3, the next generation commercial remote-sensing
satellite for DigitalGlobe, and was awarded a contract by NASA for
the first Joint Polar Satellite System (JPSS-1) satellite. Procured
by NASA's Goddard Spaceflight Center on behalf of the National
Oceanic and Atmospheric Administration, JPSS-1 will ensure
continuity of vital climate and weather data records. In September,
the Space Based Space Surveillance satellite, built by Ball
Aerospace for the U.S. Air Force, launched successfully and initial
tests indicate it is functioning as expected.
Outlook
"The company's balance sheet continues to strengthen, and
excluding the impact of a previously disclosed accounting change we
now expect full-year free cash flow to be at least $500 million," said Scott
C. Morrison, senior vice president and chief financial
officer. "We are also executing on our plan to repurchase more than
$400 million of our stock in
2010."
"Ball Corporation is building significant momentum in 2010,
which we expect to continue in 2011 and result in further improved
performance," Hoover said. "We believe our comparable second half
performance from continuing operations should exceed that of the
first half of 2010. The numerous strategic actions we have taken in
2010, the overall increase in demand globally for our products, our
focus on balancing supply with demand and our successful execution
on disciplined growth opportunities make us optimistic about Ball's
future."
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 http://www.ball.com.
Conference Call Details
Ball Corporation (NYSE: BLL) will hold its regular quarterly
conference call on the company's results and performance on
Thursday, Oct. 28, 2010, at
9 a.m. Mountain Time (11 a.m. Eastern Time). The North American
toll-free number for the call is 800-667-9916. International
callers should dial 303-223-2689. 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=3392516
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 Time) on Nov. 4,
2010. To access the replay, call 800-633-8284 (North
American callers) or 402-977-9140 (international callers) and use
reservation number 21483328. 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 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 website 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 (September
2010)
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|
Unaudited
Statements of Consolidated Earnings
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|
|
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Three months
ended
|
|
Nine months
ended
|
|
|
|
September
26,
|
|
September
27,
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|
September
26,
|
|
September
27,
|
|
($ in millions, except per share
amounts)
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
Net sales
(Note 2)
|
|
$
2,035.0
|
|
$
1,812.3
|
|
$
5,634.8
|
|
$
4,982.8
|
|
Costs and expenses
|
|
|
|
|
|
|
|
|
|
Cost of sales (excluding
depreciation)
|
|
1,653.4
|
|
1,471.6
|
|
4,614.7
|
|
4,082.0
|
|
Depreciation and
amortization
|
|
67.1
|
|
59.9
|
|
192.2
|
|
174.3
|
|
Selling, general and
administrative
|
|
93.0
|
|
83.2
|
|
249.9
|
|
225.1
|
|
Business consolidation
and other activities (Note 3)
|
|
(11.6)
|
|
10.1
|
|
(9.8)
|
|
22.3
|
|
Gain on disposition (Note
3)
|
|
-
|
|
-
|
|
-
|
|
(34.8)
|
|
|
|
1,801.9
|
|
1,624.8
|
|
5,047.0
|
|
4,468.9
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest and
taxes (Note 2)
|
|
233.1
|
|
187.5
|
|
587.8
|
|
513.9
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(36.2)
|
|
(28.9)
|
|
(106.7)
|
|
(79.4)
|
|
Debt refinancing costs (Note
3)
|
|
-
|
|
-
|
|
(8.1)
|
|
-
|
|
Total interest
expense
|
|
(36.2)
|
|
(28.9)
|
|
(114.8)
|
|
(79.4)
|
|
Tax provision
|
|
(60.5)
|
|
(55.1)
|
|
(142.2)
|
|
(131.7)
|
|
Equity in results of affiliates
(Note 3)
|
|
85.8
|
|
5.5
|
|
118.5
|
|
8.0
|
|
Less net earnings attributable
to noncontrolling interests
|
|
-
|
|
(0.1)
|
|
(0.1)
|
|
(0.4)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from continuing
operations
|
|
222.2
|
|
108.9
|
|
449.2
|
|
310.4
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net of
tax (Notes 1 and 3)
|
|
5.3
|
|
(5.2)
|
|
(73.4)
|
|
(3.9)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to
Ball Corporation
|
|
$
227.5
|
|
$
103.7
|
|
$
375.8
|
|
$
306.5
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (Note
3):
|
|
|
|
|
|
|
|
|
|
Basic - continuing
operations
|
|
$
2.48
|
|
$
1.16
|
|
$
4.90
|
|
$
3.31
|
|
Basic -
discontinued operations
|
|
0.06
|
|
(0.06)
|
|
(0.80)
|
|
(0.04)
|
|
Total basic
earnings per share
|
|
$
2.54
|
|
$
1.10
|
|
$
4.10
|
|
$
3.27
|
|
|
|
|
|
|
|
|
|
|
|
Diluted -
continuing operations
|
|
$
2.44
|
|
$
1.14
|
|
$
4.84
|
|
$
3.27
|
|
Diluted -
discontinued operations
|
|
0.06
|
|
(0.05)
|
|
(0.79)
|
|
(0.04)
|
|
Total
diluted earnings per share
|
|
$
2.50
|
|
$
1.09
|
|
$
4.05
|
|
$
3.23
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding (000s):
|
|
|
|
|
|
|
|
|
|
Basic
|
|
89,632
|
|
93,976
|
|
91,573
|
|
93,763
|
|
Diluted
|
|
91,079
|
|
95,351
|
|
92,897
|
|
94,950
|
|
|
|
|
|
|
|
|
|
|
Condensed Financials (September
2010)
|
|
Unaudited
Statements of Consolidated Cash Flows
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
|
|
September
26,
|
|
September
27,
|
|
($ in millions)
|
|
2010
|
|
2009
|
|
Cash Flows From Operating
Activities:
|
|
|
|
|
|
Net earnings
|
|
$
375.9
|
|
$
306.9
|
|
Discontinued operations,
net of tax
|
|
73.4
|
|
3.9
|
|
Depreciation and
amortization
|
|
192.2
|
|
174.3
|
|
Gains and equity earnings
related to acquisitions (Note 2 & 3)
|
|
(105.9)
|
|
-
|
|
Gain on sale of
investment (Note 3)
|
|
-
|
|
(34.8)
|
|
Income taxes
|
|
27.3
|
|
16.6
|
|
Increase in accounts
receivable due to change in
|
|
|
|
|
|
accounting
for securitization program
|
|
(250.0)
|
|
-
|
|
Other changes in working
capital
|
|
(36.7)
|
|
(542.2)
|
|
Other
|
|
79.7
|
|
20.3
|
|
Cash
provided by (used in) continuing operating activities
|
|
355.9
|
|
(55.0)
|
|
Cash
provided by discontinued operating activities
|
|
15.5
|
|
61.1
|
|
|
|
371.4
|
|
6.1
|
|
Cash Flows From Investing
Activities:
|
|
|
|
|
|
Additions to property,
plant and equipment
|
|
(131.1)
|
|
(117.0)
|
|
Acquisitions of equity
affiliates (Note 3)
|
|
(63.8)
|
|
-
|
|
Business
acquisition
|
|
(60.0)
|
|
-
|
|
Proceeds from sale of
business
|
|
280.0
|
|
-
|
|
Cash collateral deposits,
net
|
|
0.1
|
|
85.7
|
|
Proceeds from sale of
investment (Note 3)
|
|
-
|
|
37.0
|
|
Other
|
|
(10.2)
|
|
(11.1)
|
|
Cash
provided by (used in) continuing investing activities
|
|
15.0
|
|
(5.4)
|
|
Cash used in
discontinued investing activities
|
|
(9.2)
|
|
(12.5)
|
|
|
|
5.8
|
|
(17.9)
|
|
Cash Flows From Financing
Activities:
|
|
|
|
|
|
Changes in borrowings,
net
|
|
(65.6)
|
|
331.7
|
|
Issuances (purchases) of
common stock, net
|
|
(318.0)
|
|
2.2
|
|
Dividends
|
|
(27.2)
|
|
(28.1)
|
|
Other
|
|
(5.8)
|
|
(5.6)
|
|
Cash
provided by (used in) continuing financing activities
|
|
(416.6)
|
|
300.2
|
|
Effect of exchange rate changes
on cash
|
|
(2.5)
|
|
2.3
|
|
Change in
cash
|
|
(41.9)
|
|
290.7
|
|
Cash-beginning of
period
|
|
210.6
|
|
127.4
|
|
Cash-end of
period
|
|
$
168.7
|
|
$
418.1
|
|
|
|
|
|
|
Condensed Financials (September
2010)
|
|
Unaudited
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
September
26,
|
|
September
27,
|
|
($ in millions)
|
2010
|
|
2009
|
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash
equivalents
|
$
168.7
|
|
$
418.1
|
|
Receivables,
net
|
1,121.3
|
|
1,055.0
|
|
Inventories,
net
|
898.9
|
|
831.5
|
|
Deferred taxes and other
current assets
|
169.2
|
|
292.0
|
|
Assets held for
sale
|
-
|
|
450.1
|
|
Total current assets
|
2,358.1
|
|
3,046.7
|
|
Property, plant and equipment,
net
|
1,996.1
|
|
1,596.1
|
|
Goodwill
|
2,111.5
|
|
1,754.0
|
|
Other assets, net
|
513.4
|
|
395.3
|
|
|
|
|
|
|
Total
assets
|
$
6,979.1
|
|
$
6,792.1
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
$
592.5
|
|
$
253.1
|
|
Payables and accrued
liabilities
|
1,342.8
|
|
1,238.5
|
|
Total liabilities held
for sale
|
-
|
|
62.1
|
|
Total current liabilities
|
1,935.3
|
|
1,553.7
|
|
Long-term debt
|
2,054.8
|
|
2,532.7
|
|
Other long-term
liabilities
|
1,248.6
|
|
1,226.6
|
|
Shareholders'
equity
|
1,740.4
|
|
1,479.1
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
6,979.1
|
|
$
6,792.1
|
|
|
|
|
|
Notes to Condensed Financials
(September 2010)
|
|
|
|
|
|
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1. Changes in Presentation for
Discontinued Operations
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During August 2010, the company
completed the sale of its plastic packaging, Americas, business to
Amcor Limited for approximately $265 million in cash and $15
million in contingent consideration, subject to closing
adjustments. The sale of Ball's plastic packaging business included
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, $0.3 million and $1.5 million of indirect costs
previously allocated to the plastic packaging, Americas, segment
have been included in undistributed corporate costs for the three
and nine months ended September 26, 2010, respectively; and $0.8
million and $2.5 million have been included for the three and nine
months ended September 27, 2009, respectively. Further details of
the sale are included in Note 3.
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2. Business Segment
Information
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Three months
ended
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Nine months
ended
|
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September
26,
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September
27,
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September
26,
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September
27,
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($ in millions)
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2010
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2009
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2010
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2009
|
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Sales-
|
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Metal beverage packaging,
Americas & Asia
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$
1,004.7
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|
$
706.4
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$
2,815.1
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$
2,075.9
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Metal beverage packaging,
Europe
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442.3
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478.0
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1,289.1
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1,312.4
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Metal food & household
packaging, Americas
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420.1
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459.5
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1,017.5
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1,066.5
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Aerospace &
technologies
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|
167.9
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168.4
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513.1
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528.0
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Net
sales
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$
2,035.0
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$
1,812.3
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$
5,634.8
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$
4,982.8
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Earnings before interest and
taxes-
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Metal beverage packaging,
Americas & Asia
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$
112.8
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$
102.9
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$
301.3
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$
223.9
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Business consolidation
activities (Note 3)
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(0.9)
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(1.0)
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0.4
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(9.3)
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Total metal beverage packaging,
Americas & Asia
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111.9
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101.9
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301.7
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214.6
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Metal beverage packaging,
Europe
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63.1
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68.8
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170.6
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164.5
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Metal food & household
packaging, Americas
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49.4
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27.8
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104.5
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112.5
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Business consolidation
activities (Note 3)
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13.2
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-
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13.2
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-
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Total metal food & household
packaging, Americas
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62.6
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27.8
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|
117.7
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112.5
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Aerospace &
technologies
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18.4
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16.2
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50.5
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45.6
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Segment earnings before interest
and taxes
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256.0
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214.7
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|
640.5
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537.2
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Undistributed corporate costs,
net
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(22.2)
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(18.1)
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(48.9)
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(45.1)
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Gain on sale of investment (Note
3)
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-
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-
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-
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34.8
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Business consolidation and other
activities (Note 3)
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(0.7)
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(9.1)
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(3.8)
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(13.0)
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Total undistributed corporate
costs, net
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(22.9)
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(27.2)
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(52.7)
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(23.3)
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Earnings before
interest and taxes
|
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233.1
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|
187.5
|
|
587.8
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|
513.9
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Interest expense
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(36.2)
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(28.9)
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(114.8)
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(79.4)
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Tax provision
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|
(60.5)
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(55.1)
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|
(142.2)
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|
(131.7)
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Net earnings attributable to
noncontrolling interests
|
|
-
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(0.1)
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|
(0.1)
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(0.4)
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Equity in results of
affiliates
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2.0
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5.5
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12.6
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|
8.0
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Gains and equity earnings
related to acquisitions (Note 3)
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|
83.8
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-
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|
105.9
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-
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Total equity in results of
affiliates
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|
85.8
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5.5
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|
118.5
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8.0
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Net earnings from continuing
operations
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|
$
222.2
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$
108.9
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$
449.2
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|
$
310.4
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|
|
Notes to Condensed Financials
(September 2010)
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3. Business Consolidation
Activities and Other Items
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2010
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During August 2010, the company
paid $46.2 million to acquire an additional 10.1 percent economic
interest in its Brazilian beverage packaging joint venture,
Latapack-Ball Embalgens Ltda. (Latapack-Ball), through a
transaction with the joint venture partner Latapack S.A., which
increased the company’s economic interest in the joint venture to
60.1 percent. As a result of the transaction Latapack-Ball became a
variable interest entity (VIE) under consolidation accounting
guidelines with Ball identified as the primary beneficiary of the
VIE and consolidating the joint venture. Latapack-Ball operates
metal beverage packaging manufacturing plants in Tres Rios, Jacarei
and Salvador, Brazil, and is reported as part of the metal beverage
packaging, Americas and Asia segment. In the consolidation of
Latapack-Ball, the company recognized a $81.8 million gain on its
previously held equity investment in Latapack-Ball.
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As discussed in Note 1, in
August 2010, the company completed the sale of its plastic
packaging, Americas, business. In connection with the sale, the
company has reported discontinued operations as summarized in the
following table.
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Three
months ended
|
|
Nine
months ended
|
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|
September
26,
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September
27,
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|
September
26,
|
|
September
27,
|
|
|
($ in millions)
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
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Net sales
|
$
55.3
|
|
$
156.8
|
|
$
318.5
|
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$
498.1
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Earnings from
operations
|
$
1.9
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$
4.6
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$
3.3
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|
$
17.7
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Gain on sale of
business
|
9.9
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-
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9.9
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-
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Impairment loss
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-
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|
-
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|
(107.1)
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-
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Business consolidation
activities
|
(2.8)
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|
(12.6)
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(10.1)
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|
(24.5)
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Tax benefit
|
(3.7)
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|
2.8
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30.6
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|
2.9
|
|
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Discontinued operations,
net of tax
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$
5.3
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$
(5.2)
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|
$
(73.4)
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|
$
(3.9)
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Earnings of $17.8 million ($14.5
million after tax) were recorded in the third quarter of 2010 due
to the reversal of a pension settlement liability. The earnings
were offset by a charge of $4.6 million ($2.8 million after tax)
for the closure of a plant in Canada. The third quarter of 2010
also included other individually insignificant costs of $1.6
million ($1.0 million after tax).
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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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In April 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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In June 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 $86.9 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 $24.1 million.
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2009
|
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|
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) were recorded for administrative downsizing in our North
American metal beverage business and clean-up costs related to
previously closed and sold facilities. In the third quarter, a
charge of $1.0 million ($0.6 million after tax) was recorded
related to winding down the closure of two North American metal
beverage plants. In addition, charges of $9.1 million ($5.5 million
after tax) and $2.9 million ($1.8 million after tax) were recorded
in the third quarter and second quarter, respectively, for
transaction costs related to an acquisition that was finalized in
the fourth quarter.
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Also during the second quarter
of 2009, 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 ($30.7 million after tax) was
recorded in corporate costs.
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|
|
|
|
|
|
|
|
|
|
Notes to Condensed Financials
(September 2010)
|
|
|
|
|
|
|
|
|
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|
|
3. Business Consolidation
Activities and Other Items (continued)
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|
|
|
|
|
|
|
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|
|
A summary of the effects of the
above transactions on after-tax earnings
follows:
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
September
26,
|
|
September
27,
|
|
September
26,
|
|
September
27,
|
|
|
($ in millions, except per share
amounts)
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings as
reported
|
$
227.5
|
|
$
103.7
|
|
$
375.8
|
|
$
306.5
|
|
|
Discontinued operations, net of
tax
|
(5.3)
|
|
5.2
|
|
73.4
|
|
3.9
|
|
|
Business consolidation
activities, net of tax
|
(10.7)
|
|
6.1
|
|
(9.6)
|
|
13.6
|
|
|
Gains and equity earnings
related to acquisitions, net of tax
|
(83.8)
|
|
-
|
|
(105.9)
|
|
-
|
|
|
Gain on disposition, net of
tax
|
-
|
|
-
|
|
-
|
|
(30.7)
|
|
|
Debt refinancing costs, net of
tax
|
-
|
|
-
|
|
4.9
|
|
-
|
|
|
Net earnings before above
transactions
|
$
127.7
|
|
$
115.0
|
|
$
338.6
|
|
$
293.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Per diluted share before
above transactions
|
$
1.40
|
|
$
1.21
|
|
$
3.64
|
|
$
3.09
|
|
|
|
|
|
|
|
|
|
|
|
A summary of the effects of the
above transactions on earnings before interest and
taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
September
26,
|
|
September
27,
|
|
September
26,
|
|
September
27,
|
|
|
($ in millions, except per share
amounts)
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest and
taxes as reported
|
$
233.1
|
|
$
187.5
|
|
$
587.8
|
|
$
513.9
|
|
|
Business consolidation
activities
|
(11.6)
|
|
10.1
|
|
(9.8)
|
|
22.3
|
|
|
Gain on disposition
|
-
|
|
-
|
|
-
|
|
(34.8)
|
|
|
EBIT before above
transactions
|
$
221.5
|
|
$
197.6
|
|
$
578.0
|
|
$
501.4
|
|
|
|
|
|
|
|
|
|
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|
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.
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SOURCE Ball Corporation
Copyright . 28 PR Newswire