DOW JONES NEWSWIRES
Ball Corp.'s (BLL) third-quarter profit more than doubled on a
host of one-time gains as revenue rose more than expected thanks to
strength in the company's biggest segment.
But core earnings fell slightly short of analysts'
expectations.
Chairman and Chief Executive R. David Hoover said, "Excellent
operating performance within our various packaging businesses and
strong program performance by our aerospace segment contributed to
improved year-over-year results."
For the third quarter, revenue at the metal beverage-packaging
segment for the Americas and Asia, Ball's biggest segment by
revenue, jumped 42% as earnings increased 10%. Aerospace and
technologies segment saw sales edge down 0.3% while profit jumped
14%.
The metal-packaging company has seen results improve the past
several quarters as orders rebounded for its packaging products
from woeful levels during the economic downturn. Fitch Ratings in
August raised its outlook on Ball, citing its strong cash flow,
cost cutting and improving demand for packaging businesses.
Ball has also been restructuring, shedding less-profitable
divisions and expanding its footprint to emerging markets, which
have been turning in double-digit revenue growth in the past
quarters. The company has sold its plastic-packaging division and
in September said it increased its stake in a Brazilian beverage
packaging joint venture.
Ball reported a profit of $227.5 million, or $2.50 a share, up
from $103.7 million, or $1.09 a share, a year earlier. Excluding
items such as acquisition gains, earnings from continuing
operations rose to $1.40 from $1.21 as revenue increased 12% to
$2.04 billion.
Analysts polled by Thomson Reuters had most recently estimated
earnings of $1.43 and $2.03 billion in revenue.
Gross margin was flat at 18.8%.
Shares closed at $60.80 on Wednesday and were inactive
premarket. The stock has risen 18% this year.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037;
jodi.xu@dowjones.com;