Ball Corp.'s (BLL) second-quarter profit more than doubled over
a prior-year weighed down by discontinued operations as strong
metal packaging sales in China and Europe drove higher revenue.
Results were still weaker than recently expected after soft
beverage can demand in North and South America weighed down
sales.
Ball's top line has improved over the past year as the worldwide
economic recovery prompts its manufacturing customers to place more
orders, especially in emerging markets. The company spent last year
shedding its less-profitable plastic-packaging division and further
expanding its footprint internationally, where revenue growth has
been strongest.
Results were "driven largely by demand for metal packaging in
China and Europe, exceptional aerospace program performance and the
impact of Ball's strategic expansion into extruded aluminum
packaging," President and Chief Executive John A. Hayes said.
Ball reported a profit of 143.1 million, or 84 cents a share, up
from $69 million, or 37 cents a share, a year earlier. Including
only continuing operations, the prior-year profit reached 77 cents
a share. Revenue increased 15% to $2.31 billion.
Analysts polled by Thomson Reuters had forecast an 86-cent
per-share profit and $2.42 billion of revenue.
Gross margin edged up to 18.4% from 18.2%.
The company's main metal beverage-packaging segment for Asia and
the Americas posted 12% higher sales in the latest quarter as
operating earnings grew 7.2%. Sales in the European metal beverage
packaging segment climbed 27%, pushing earnings up 16%. Ball's
aerospace segment reported 11% higher sales, driving profit up
17%.
Shares closed at $39.28 Wednesday and were inactive premarket.
The stock has climbed 38% over the past year.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com