BROOMFIELD, Colo., Oct. 27, 2011 /PRNewswire/ -- Ball Corporation
(NYSE: BLL) today reported third quarter net earnings attributable
to the corporation of $132.1 million,
or 79 cents per diluted share, on
sales of $2.3 billion, compared to
$227.5 million, or $1.25 per diluted share, both including business
consolidation costs and other activities, on sales of $2 billion in the third quarter of 2010. Results
for the first nine months of 2011 were net earnings attributable to
the corporation of $366.5 million, or
$2.15 per diluted share, on sales of
$6.6 billion, compared to
$375.8 million, or $2.02 per diluted share, both including business
consolidation costs and other activities, on sales of $5.6 billion in the first nine months of
2010.
Comparable 2011 earnings per diluted share for the third quarter
and year-to-date were 81 cents and
$2.24 respectively, versus third
quarter and year-to-date 2010 comparable earnings per diluted share
of 70 cents and $1.82, respectively. Details of comparable
segment earnings and business consolidation activities can be found
in Notes 1 and 2 to the unaudited consolidated financial statements
that accompany this news release.
"Ball's comparable results improved despite continued, wider
global economic uncertainty," said John A.
Hayes, president and chief executive officer. "Our company's
third quarter performance benefited from strong demand for metal
packaging in China and
Brazil, improved metal beverage
can volumes in North America,
exceptional aerospace program performance and a lower
effective tax rate driven primarily by tax benefits from foreign
exchange on a local currency basis in Brazil. All of our operations are doing an
excellent job in a challenging operating environment as we maximize
value in our existing businesses and expand in growing, emerging
markets."
"Capital projects in our packaging operations in Brazil, China, North
America and Vietnam
continue on budget, and will begin to come on line in the fourth
quarter of 2011 and early in the first quarter of 2012," said
Raymond J. Seabrook, executive vice
president and chief operating officer, global packaging. "We
continue to monitor supply and demand balance in mature markets to
appropriately align our manufacturing footprint with demand."
Metal Beverage Packaging, Americas & Asia
Metal beverage packaging, Americas and Asia, comparable segment operating earnings
were $120.1 million in the third
quarter on sales of $1.1 billion,
compared to $112.8 million on sales
of $1.0 billion in the third quarter
of 2010. For the first nine months, comparable segment operating
earnings were $361.8 million on sales
of $3.3 billion, compared to
$301.3 million on sales of
$2.8 billion during the same period
in 2010. Strength continued in China where local demand exceeds local supply,
while volumes in North America
increased slightly in the third quarter compared to 2010. Volumes
in Ball's Brazilian business were up mid-single digits in the
quarter with demand accelerating through the quarter.
During the quarter, the company completed the closure of its
Torrance, Calif., beverage can
plant announced in January 2011, and
started up a specialty beverage can line in its Fort Worth, Texas, facility. Ball also
introduced an 8-oz trim can size to meet new federal guidelines on
beverage servings in schools. In October, Ball announced it had
acquired its partners' 60 percent interests in a former joint
venture metal beverage can plant in Qingdao, China, and is building a new,
expanded plant in Qingdao to meet
customer demand. Ball expects to report an after tax gain of
approximately $6 million in the
fourth quarter of 2011 on its previous ownership interest in the
joint venture, subject to final appraisal of the business.
Metal Beverage Packaging, Europe
Metal beverage packaging, Europe, results in the quarter were comparable
segment operating earnings of $64.9
million on sales of $515.7
million, compared to $63.7
million on sales of $443.7
million in 2010. Results for the first nine months were
comparable segment operating earnings of $202.7 million on sales of $1.6 billion, compared to $171.2 million on sales of $1.3 billion in 2010.
Wet, cool weather conditions across most of Europe in July and August contributed to
decreased beverage can volumes in the quarter compared to a year
ago; however, continued strong volumes in the extruded aluminum
packaging business acquired in January and a higher exchange rate
offset the beverage can volume declines.
Metal Food & Household Products Packaging,
Americas
Metal food and household products packaging, Americas, results
in the third quarter were comparable segment operating earnings of
$39.5 million on sales of
$413.2 million, compared to
$49.4 million in 2010 on sales of
$420.1 million. Year-to-date results
were comparable segment operating earnings of $120.6 million on sales of $1.1 billion, compared to $104.5 million on sales of $1.0 billion in 2010. A poor vegetable pack
contributed to lower third quarter results but year-to-date results
improved more than 15 percent compared to last year.
Food can volumes decreased in the mid-single digits in the
quarter compared to the same period in 2010. Manufacturing assets
from Ball's former Richmond, B.C.,
salmon can plant were successfully relocated to the company's
Oakdale, Calif., food can plant
and the first of two lines is expected to start up by the end of
2011, with the second line starting up in the first quarter of
2012.
Aerospace and Technologies
Aerospace and technologies results were comparable segment
operating earnings of $21.2 million
on sales of $208.4 million in the
third quarter, compared to $18.4
million on sales of $167.9
million in 2010. For the first nine months, comparable
segment operating earnings were $61.6
million on sales of $599.5
million compared to $50.5
million on sales of $513.1
million during the same period last year. Backlog at the end
of the quarter was $985.5
million.
During the quarter, Ball delivered the National Polar-orbiting
Operational Environmental Satellite System Preparatory Project to
Vandenberg Air Force Base in California for tomorrow's scheduled launch.
NPP is the first of a new generation of satellites that will
measure both global climate changes and key weather variables.
Also during the quarter, Ball delivered Wavefront Sensing
& Control software for the James Webb Space Telescope. The
software contains sophisticated mathematical algorithms that will
be used to align and phase the telescope's hexagonal primary mirror
segments to perform as a single monolithic mirror.
Outlook
"We expect full-year free cash flow to be at least $400 million after approximately $500 million of capital expenditures, of which
$300 million is for growth projects,"
said Scott C. Morrison, senior vice
president and chief financial officer. "During the quarter Ball
announced and completed a $125
million accelerated stock repurchase agreement and for the
full year we expect to buy back at least a net $450 million of company stock."
"Our operations are performing well in a difficult environment,"
Hayes said. "Despite six fewer accounting days in the second half
of 2011, we anticipate a strong close to the year."
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
14,500 people worldwide and reported 2010 sales of more than
$7.6 billion. For the latest Ball
news and for other company information, please visit
http://www.ball.com.
Conference Call Details
Ball Corporation will announce its quarterly conference call on
the company's results and performance at 9
a.m. Mountain time (11 a.m.
Eastern). The North American toll-free number for the call is
800-268-2160. International callers should dial 303-223-2680.
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=4204647
For those unable to listen to the live call, a taped replay will
be available at 11 a.m. Mountain time
on Oct. 27 until 11 a.m. Mountain time on Nov. 3, 2011. To access the replay, call
800-633-8284 (North American callers) or 402-977-9140
(international callers) and use reservation number 21539469. A
written transcript of the call will be posted within 48 hours of
the call's conclusion to Ball's website 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 on 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; political instability and sanctions; 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
recent global recession and its effects on liquidity, credit risk,
asset values and the economy; successful or unsuccessful
acquisitions; regulatory action or laws including tax,
environmental, health and workplace safety, including U.S. FDA and
other actions affecting products filled in our containers, 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; uncertainties
surrounding the U.S. government budget and debt limit; reduced cash
flow; interest rates affecting our debt; and changes to unaudited
results due to statutory audits or other effects.
Condensed Financials (Third
Quarter 2011)
|
|
Unaudited
Condensed Consolidated Statements of Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
October
2,
|
|
September
26,
|
|
October
2,
|
|
September
26,
|
|
($ in millions, except per share
amounts)
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
2,258.3
|
|
$
2,035.0
|
|
$
6,579.2
|
|
$
5,634.8
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (excluding depreciation and amortization)
|
|
(1,862.2)
|
|
(1,653.4)
|
|
(5,378.4)
|
|
(4,614.7)
|
|
Depreciation and
amortization
|
|
(74.5)
|
|
(67.1)
|
|
(222.2)
|
|
(192.2)
|
|
Selling, general and
administrative
|
|
(89.7)
|
|
(93.0)
|
|
(282.2)
|
|
(249.9)
|
|
Business consolidation and other
activities
|
|
(3.3)
|
|
11.6
|
|
(19.7)
|
|
9.8
|
|
|
|
(2,029.7)
|
|
(1,801.9)
|
|
(5,902.5)
|
|
(5,047.0)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest and
taxes
|
|
228.6
|
|
233.1
|
|
676.7
|
|
587.8
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(43.0)
|
|
(36.2)
|
|
(134.7)
|
|
(106.7)
|
|
Debt refinancing
costs
|
|
-
|
|
-
|
|
-
|
|
(8.1)
|
|
Total interest
expense
|
|
(43.0)
|
|
(36.2)
|
|
(134.7)
|
|
(114.8)
|
|
Earnings before taxes
|
|
185.6
|
|
196.9
|
|
542.0
|
|
473.0
|
|
Tax provision
|
|
(47.6)
|
|
(60.5)
|
|
(160.2)
|
|
(142.2)
|
|
Equity in results of affiliates,
net of tax
|
|
0.8
|
|
85.8
|
|
1.9
|
|
118.5
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from continuing
operations
|
|
138.8
|
|
222.2
|
|
383.7
|
|
449.3
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net of
tax
|
|
(1.3)
|
|
5.3
|
|
(2.9)
|
|
(73.4)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
137.5
|
|
227.5
|
|
380.8
|
|
375.9
|
|
|
|
|
|
|
|
|
|
|
|
Less net earnings attributable
to noncontrolling interests
|
|
(5.4)
|
|
-
|
|
(14.3)
|
|
(0.1)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to
Ball Corporation
|
|
$
132.1
|
|
$
227.5
|
|
$
366.5
|
|
$
375.8
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable
to Ball Corporation:
|
|
|
|
|
|
|
|
|
|
Basic - continuing
operations
|
|
$
0.82
|
|
$
1.24
|
|
$
2.22
|
|
$
2.45
|
|
Basic -
discontinued operations
|
|
(0.01)
|
|
0.03
|
|
(0.02)
|
|
(0.40)
|
|
Total basic
earnings per share
|
|
$
0.81
|
|
$
1.27
|
|
$
2.20
|
|
$
2.05
|
|
|
|
|
|
|
|
|
|
|
|
Diluted -
continuing operations
|
|
$
0.80
|
|
$
1.22
|
|
$
2.17
|
|
$
2.42
|
|
Diluted -
discontinued operations
|
|
(0.01)
|
|
0.03
|
|
(0.02)
|
|
(0.40)
|
|
Total
diluted earnings per share
|
|
$
0.79
|
|
$
1.25
|
|
$
2.15
|
|
$
2.02
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding (000s):
|
|
|
|
|
|
|
|
|
|
Basic
|
|
163,898
|
|
179,264
|
|
166,779
|
|
183,146
|
|
Diluted
|
|
167,363
|
|
182,158
|
|
170,248
|
|
185,794
|
|
|
|
|
|
|
|
|
|
|
Condensed Financials (Third
Quarter 2011)
|
|
Unaudited
Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
Nine months
ended
|
|
|
|
October
2,
|
|
September
26,
|
|
($ in millions)
|
|
2011
|
|
2010
|
|
Cash Flows From Operating
Activities:
|
|
|
|
|
|
Net earnings
|
|
$
380.8
|
|
$
375.9
|
|
Discontinued operations,
net of tax
|
|
2.9
|
|
73.4
|
|
Depreciation and
amortization
|
|
222.2
|
|
192.2
|
|
Gain and equity earnings
related to acquisitions
|
|
(1.9)
|
|
(118.5)
|
|
Taxes
|
|
49.2
|
|
27.3
|
|
Other, net
|
|
66.9
|
|
92.3
|
|
Changes in working
capital
|
|
(271.6)
|
|
(286.7)
|
|
Cash
provided by (used in) continuing operating activities
|
|
448.5
|
|
355.9
|
|
Cash
provided by (used in) discontinued operating activities
|
|
(7.5)
|
|
15.5
|
|
|
|
441.0
|
|
371.4
|
|
Cash Flows From Investing
Activities:
|
|
|
|
|
Additions to property,
plant and equipment
|
|
(323.8)
|
|
(131.1)
|
|
Business acquisition, net
of cash acquired
|
|
(295.2)
|
|
(60.0)
|
|
Acquisitions of equity
affiliates, net of cash acquired
|
|
-
|
|
(63.8)
|
|
Proceeds from sale of
business
|
|
-
|
|
280.0
|
|
Other, net
|
|
(7.3)
|
|
(10.1)
|
|
Cash
provided by (used in) continuing investing activities
|
|
(626.3)
|
|
15.0
|
|
Cash
provided by (used in) discontinued investing activities
|
|
-
|
|
(9.2)
|
|
|
|
(626.3)
|
|
5.8
|
|
Cash Flows From Financing
Activities:
|
|
|
|
|
|
Changes in borrowings,
net
|
|
627.5
|
|
(65.6)
|
|
Purchases of common
stock, net of issuances
|
|
(381.3)
|
|
(318.0)
|
|
Common
dividends
|
|
(34.6)
|
|
(27.2)
|
|
Other, net
|
|
4.7
|
|
(5.8)
|
|
Cash
provided by (used in) financing activities
|
|
216.3
|
|
(416.6)
|
|
Effect of exchange rate changes
on cash
|
|
7.1
|
|
(2.5)
|
|
Change in cash
|
|
38.1
|
|
(41.9)
|
|
Cash-beginning of
period
|
|
152.0
|
|
210.6
|
|
Cash-end of
period
|
|
$
190.1
|
|
$
168.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Financials (Third
Quarter 2011)
|
|
|
|
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
October
2,
|
|
September
26,
|
|
($ in millions)
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
190.1
|
|
$
168.7
|
|
Receivables,
net
|
|
1,107.6
|
|
1,121.3
|
|
Inventories,
net
|
|
1,094.6
|
|
898.9
|
|
Deferred taxes and
other current assets
|
|
181.6
|
|
169.2
|
|
Total current assets
|
|
2,573.9
|
|
2,358.1
|
|
Property, plant and equipment,
net
|
|
2,242.5
|
|
1,996.1
|
|
Goodwill
|
|
2,283.1
|
|
2,111.5
|
|
Other assets, net
|
|
438.9
|
|
513.4
|
|
|
|
|
|
|
|
Total
assets
|
|
$
7,538.4
|
|
$
6,979.1
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
|
$
479.2
|
|
$
592.5
|
|
Payables and
accrued liabilities
|
|
1,306.4
|
|
1,342.8
|
|
Total current liabilities
|
|
1,785.6
|
|
1,935.3
|
|
Long-term debt
|
|
2,977.5
|
|
2,054.8
|
|
Other long-term
liabilities
|
|
1,207.3
|
|
1,248.6
|
|
Shareholders'
equity
|
|
1,568.0
|
|
1,740.4
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$
7,538.4
|
|
$
6,979.1
|
|
|
|
|
|
|
Notes to Condensed Financials (Third Quarter 2011)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Business Segment
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
|
|
October
2,
|
|
September
26,
|
|
October
2,
|
|
September
26,
|
|
($ in millions)
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Sales-
|
|
|
|
|
|
|
|
|
|
|
Metal beverage packaging,
Americas & Asia
|
|
$
1,125.4
|
|
$
1,004.7
|
|
$
3,321.8
|
|
$
2,815.1
|
|
|
Metal beverage packaging,
Europe
|
|
515.7
|
|
443.7
|
|
1,566.6
|
|
1,290.5
|
|
|
Metal food & household
packaging, Americas
|
|
413.2
|
|
420.1
|
|
1,103.6
|
|
1,017.5
|
|
|
Aerospace &
technologies
|
|
208.4
|
|
167.9
|
|
599.5
|
|
513.1
|
|
|
Corporate and intercompany
eliminations
|
|
(4.4)
|
|
(1.4)
|
|
(12.3)
|
|
(1.4)
|
|
|
|
Net
sales
|
|
$
2,258.3
|
|
$
2,035.0
|
|
$
6,579.2
|
|
$
5,634.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest and
taxes-
|
|
|
|
|
|
|
|
|
|
|
Metal beverage packaging,
Americas & Asia
|
|
$
120.1
|
|
$
112.8
|
|
$
361.8
|
|
$
301.3
|
|
|
Business consolidation and other
activities
|
|
(1.4)
|
|
(0.9)
|
|
(14.8)
|
|
0.4
|
|
|
|
Total metal beverage packaging,
Americas & Asia
|
|
118.7
|
|
111.9
|
|
347.0
|
|
301.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metal beverage packaging,
Europe
|
|
64.9
|
|
63.7
|
|
202.7
|
|
171.2
|
|
|
Business consolidation and other
activities
|
|
-
|
|
-
|
|
(2.9)
|
|
-
|
|
|
|
Total metal beverage packaging,
Europe
|
|
64.9
|
|
63.7
|
|
199.8
|
|
171.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metal food & household
packaging, Americas
|
|
39.5
|
|
49.4
|
|
120.6
|
|
104.5
|
|
|
Business consolidation and other
activities
|
|
(1.4)
|
|
13.2
|
|
(1.4)
|
|
13.2
|
|
|
|
Total metal food & household packaging, Americas
|
|
38.1
|
|
62.6
|
|
119.2
|
|
117.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace &
technologies
|
|
21.2
|
|
18.4
|
|
61.6
|
|
50.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment earnings before
interest and taxes
|
|
242.9
|
|
256.6
|
|
727.6
|
|
641.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Undistributed corporate expenses
and
|
|
|
|
|
|
|
|
|
|
|
|
intercompany eliminations,
net
|
|
(13.8)
|
|
(22.8)
|
|
(50.3)
|
|
(49.5)
|
|
|
Business consolidation and other
activities
|
|
(0.5)
|
|
(0.7)
|
|
(0.6)
|
|
(3.8)
|
|
|
|
Total undistributed corporate
expenses, net
|
|
(14.3)
|
|
(23.5)
|
|
(50.9)
|
|
(53.3)
|
|
|
|
Earnings before
interest and taxes
|
|
$
228.6
|
|
$
233.1
|
|
$
676.7
|
|
$
587.8
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes to Condensed Financials (Third Quarter 2011)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2. Material Business Consolidation Activities and Other Significant Noncomparable Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In January 2011, Ball announced
plans to close its Torrance, California, beverage can manufacturing
plant; relocate a 12-ounce can line from the Torrance plant to its
Whitby, Ontario, plant; and expand specialty can production in its
Fort Worth, Texas, plant. The company recorded charges of $1.4
million ($0.9 million after tax) and $14.2 million ($8.6 million
after tax) during the third quarter and first nine months of 2011,
respectively, in connection with these activities. In September
2011, the company discontinued production of certain products in a
facility and recorded a charge of $1.4 million in connection with
the discontinuance.
|
|
|
|
|
|
|
|
|
|
|
|
Also in January 2011, the
company acquired Aerocan S.A.S. for Euro 221.7 million ($295.2
million) in cash and assumed debt. Aerocan is a leading European
manufacturer of extruded aerosol containers and the aluminum slugs
used to make them. During the first nine months, the company
recorded transaction costs of $2.9 million ($1.9 million after tax)
related to the acquisition.
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In 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 Embalagens 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 and resulted in Ball consolidating the joint venture.
In the consolidation of Latapack-Ball, the company recognized a
gain of $81.8 million on its previously held equity investment in
Latapack-Ball.
|
|
|
|
|
|
|
|
|
|
|
|
Also in August 2010, the company
completed the sale of its plastic packaging, Americas, business to
Amcor Limited and received proceeds of $258.7 million, after
customary closing adjustments. The sale of Ball's plastic packaging
business included five U.S. plants that manufacture polyethylene
terephthalate (PET) bottles and preforms and polypropylene bottles,
as well as associated customer contracts and other related assets.
In connection with the sale, the company reported discontinued
operations as detailed in the following table.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
October
2,
|
|
September
26,
|
|
October
2,
|
|
September
26,
|
|
|
($ in millions)
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
-
|
|
$
55.3
|
|
$
-
|
|
$
318.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
operations
|
$
-
|
|
$
1.9
|
|
$
-
|
|
$
3.3
|
|
|
Impairment loss
|
-
|
|
-
|
|
-
|
|
(107.1)
|
|
|
Gain (loss) on sale of
business
|
-
|
|
9.9
|
|
(0.8)
|
|
9.9
|
|
|
Business consolidation and other activities
|
(2.2)
|
|
(2.8)
|
|
(4.0)
|
|
(10.1)
|
|
|
Tax benefit
(provision)
|
0.9
|
|
(3.7)
|
|
1.9
|
|
30.6
|
|
|
Discontinued operations,
net of tax
|
$
(1.3)
|
|
$
5.3
|
|
$
(2.9)
|
|
$
(73.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In the third quarter, earnings
of $17.8 million ($14.5 million after tax) were recorded 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).
|
|
|
|
|
|
|
|
|
|
|
|
In June 2010, the company
acquired the remaining 65 percent interest in a joint venture metal
beverage can and end plant in Sanshui, PRC, for $86.9 million in
cash (net of cash acquired) and assumed debt. As a result of
the required purchase accounting, the company recorded a gain in
equity earnings of $24.1 million.
|
|
|
|
|
|
|
|
|
|
|
|
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. Additionally, in April 2010, Ball
redeemed senior notes due December 2012, which resulted in a charge
of $8.1 million ($4.9 million after tax) for the related
call premium and write off of unamortized financing costs and
unamortized premiums.
|
|
|
|
|
|
|
|
|
|
|
Notes to Condensed Financials
(Third Quarter 2011)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2. Material Business Consolidation Activities and Other Significant Noncomparable Items (cont'd)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A summary of the effects of the
above transactions on after-tax earnings is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
October
2,
|
|
September
26,
|
|
October
2,
|
|
September
26,
|
|
|
($ in millions, except per share
amounts)
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to
Ball Corporation, as reported
|
$
132.1
|
|
$
227.5
|
|
$
366.5
|
|
$
375.8
|
|
|
Discontinued operations, net of
tax
|
1.3
|
|
(5.3)
|
|
2.9
|
|
73.4
|
|
|
Business consolidation and other
activities, net of tax
|
2.0
|
|
(10.7)
|
|
12.1
|
|
(9.6)
|
|
|
Gain and equity earnings related to acquisitions, net of tax
|
-
|
|
(83.8)
|
|
-
|
|
(105.9)
|
|
|
Debt refinancing costs, net of
tax
|
-
|
|
-
|
|
-
|
|
4.9
|
|
|
Net earnings attributable
to Ball
|
|
|
|
|
|
|
|
|
|
Corporation before
above transactions
|
|
|
|
|
|
|
|
|
|
(Comparable
Earnings)
|
$
135.4
|
|
$
127.7
|
|
$
381.5
|
|
$
338.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Per diluted share before
above transactions
|
$
0.81
|
|
$
0.70
|
|
$
2.24
|
|
$
1.82
|
|
|
|
|
|
|
|
|
|
|
|
A summary of the effects of the
above transactions on earnings before interest and taxes
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
|
October
2,
|
|
September
26,
|
|
October
2,
|
|
September
26,
|
|
|
($ in millions)
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest and
taxes, as reported
|
$
228.6
|
|
$
233.1
|
|
$
676.7
|
|
$
587.8
|
|
|
Business consolidation and other
activities
|
3.3
|
|
(11.6)
|
|
19.7
|
|
(9.8)
|
|
|
EBIT before above
transactions
|
|
|
|
|
|
|
|
|
|
(Comparable
EBIT)
|
$
231.9
|
|
$
221.5
|
|
$
696.4
|
|
$
578.0
|
|
|
|
|
|
|
|
|
|
|
|
Ball's management segregates the
above comparable 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 condensed consolidated statements of earnings. Non-U.S.
GAAP measures should not be considered in isolation.
|
|
|
|
|
|
|
|
|
|
|
SOURCE Ball Corporation