BROOMFIELD, Colo., Jan. 26, 2012 /PRNewswire/ -- Ball Corporation
(NYSE: BLL) today reported full-year 2011 net earnings attributable
to the company of $444.0 million, or
$2.63 per diluted share, on sales of
$8.6 billion, compared to
$468.0 million, or
$2.55 per diluted share, on sales of
$7.6 billion in 2010. On a comparable
basis, Ball's full-year 2011 results were net earnings of
$459.6 million, or $2.73 per diluted share, compared to $433.0 million, or $2.36 per diluted share, in 2010 which included a
fourth quarter tax benefit of 7 cents
per diluted share.
"Ball Corporation's 2011 full-year comparable earnings per share
increased more than 15 percent compared to 2010, in an economic
environment that remains challenging across much of the world,"
said John A. Hayes, president and
chief executive officer. "Our improved 2011 performance was the
result of maximizing value in our existing businesses, expanding
into new products and capabilities, broadening our geographic
reach, aligning ourselves with the right customers and markets and
leveraging our technological expertise – all key strategies in our
Drive for 10 vision to achieve continued long-term growth."
Fourth quarter 2011 net earnings attributable to Ball
Corporation were $77.5
million, or 47 cents
per diluted share, on sales of $2.1
billion, compared to $92.2
million, or 52 cents per
diluted share, on sales of $2.0
billion, in the fourth quarter of 2010. On a comparable
basis, Ball's fourth quarter results were net earnings of
$78.1 million, or 48 cents per diluted share, compared to
$94.4 million, or 53 cents per diluted share in the fourth quarter
of 2010 including a tax benefit of 7
cents per diluted share. Weaker 12-ounce beverage can
volumes in North America and
Europe and six fewer accounting
days dampened fourth quarter results and were partially offset by
strong operating performance and continued growth in specialty
packaging.
Details of comparable segment earnings for the full year and the
fourth quarter can be found in the notes to the unaudited
consolidated financial statements that accompany this news
release.
Metal Beverage Packaging, Americas & Asia
Metal beverage packaging, Americas and Asia, comparable segment operating earnings
were $481.7 million for full-year
2011 on sales of $4.4 billion,
compared to $418.3 million in 2010 on
sales of $3.8 billion. For the fourth
quarter, comparable earnings were $119.9
million on sales of $1.1
billion, compared to $117.0
million on sales of $1.0
billion in 2010.
Ball successfully started up a new Alumi-Tek® line during the
quarter in the company's Golden,
Colo., plant to meet growing demand for the popular
reclosable aluminum bottle, and reduced 12-ounce beverage can
capacity in its Columbus, Ohio,
plant to manage inventories and better align Ball's manufacturing
output with market demand. The previously announced closure of the
company's Torrance, Calif., plant
was completed as scheduled and equipment from the plant was
relocated to other facilities worldwide. Also during the fourth
quarter, Ball acquired its partners' 60 percent interests in a
former joint venture metal beverage can plant in Qingdao, China. The company is building a new,
expanded plant in Qingdao to meet
increasing market demand in this fast growing region. Ball's joint
venture beverage can plants in Alagoinhas, Brazil, and Ho Chi
Minh City, Vietnam, are on schedule to start up by the end
of the first quarter to meet continued strong customer demand.
Metal Beverage Packaging, Europe
Metal beverage packaging, Europe, comparable segment results in 2011
were operating earnings of $243.7
million on sales of $2.0
billion, compared to $213.5
million on sales of $1.7
billion in 2010. For the fourth quarter, comparable
operating earnings in 2011 were $41.0
million on sales of $451.0
million, compared to $42.3
million on sales of $408.5
million in the fourth quarter of 2010.
During the fourth quarter, continued soft beverage can volumes
were partially offset by strong demand for extruded aluminum
packaging. Ball will relocate the company's European headquarters
from Germany to Switzerland during 2012 to centralize
administrative functions and align more closely with customers.
Metal Food & Household Products Packaging,
Americas
Metal food and household products packaging, Americas,
comparable segment results for 2011 were operating earnings of
$133.7 million on sales of
$1.4 billion, compared to
$129.1 million in 2010 on sales of
$1.4 billion. For the fourth quarter
of 2011, comparable segment results were operating earnings of
$13.1 million on sales of
$322.8 million, compared to
$24.6 million on sales of
$352.6 million in the same period of
2010.
Fourth quarter results were lower due to weaker volumes after a
poor vegetable pack in the fall, increased plant curtailments late
in the year to reduce inventory and the absence of customer
prebuys compared to the fourth quarter of 2010. On a full-year
basis the segment results improved due primarily to increased
operating efficiencies and continued emphasis on lean manufacturing
practices.
Aerospace and Technologies
Aerospace and technologies comparable segment results were
operating earnings of $79.6 million
on sales of $784.6 million in 2011,
compared to $69.8 million on sales of
$713.7 million in 2010. For the
fourth quarter, earnings were $18.0
million on sales of $185.1
million, compared to $19.3
million on sales of $200.6
million in the quarter in 2010. Contracted backlog at the
close of the year was $897
million.
NASA's NPP satellite, built by Ball Aerospace, launched
successfully on Oct. 28. The
satellite's five science instruments will make critical
measurements to provide long-term climate projections and data to
improve short-term weather forecasts. Two of the instruments have
already successfully acquired initial measurements from the
satellite's orbit 512 miles above the Earth's surface. Also during
the quarter, Ball Aerospace was awarded contracts to develop and
integrate enhanced operational capabilities for the U.S. Air Force
Distributed Common Ground System, providing new capabilities for
the intelligence community.
Outlook
Ball announced yesterday a nearly 43 percent increase in the
company's quarterly cash dividend, payable March 15 to shareholders of record on
March 1, and increased its share
repurchase authorization enabling the company to repurchase up to a
total of 30 million shares of its common stock.
"The dividend increase and share authorization reflect the
company's expectations of continued strong free cash flow
generation and earnings performance in 2012," said Scott C. Morrison, senior vice president and
chief financial officer. "During 2011 our operations generated more
than $500 million in free cash flow
after capital expenditures of nearly $444
million, of which in excess of $250
million was for investments in growth opportunities. While
some capital projects carried over into 2012, we still expect to
generate free cash flow in the range of $450
million this year, the majority of which will be used to
repurchase stock."
"Our Drive for 10 vision focuses on continuing Ball's strong
performance over the next decade, and the momentum we built in 2011
provides us with a strong start toward that goal," Hayes said. "We
expect investments made in growth projects in 2011 to benefit 2012
results as those projects come on line, and our Drive for 10
actions will play a key role in helping Ball achieve our goal of 10
to 15 percent earnings per share growth in 2012 and beyond."
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 2011 sales of more than
$8.6 billion. For the latest Ball
news and for other company information, please visit
http://www.ball.com.
Conference Call Details
Ball Corporation will hold its regular quarterly conference call
on the company's results and performance today at 7:30 a.m. Mountain time (9:30 a.m. Eastern). The North American toll-free
number for the call is 800-704-5375. International callers should
dial 303-223-2683. Please use the following URL for a webcast of
the live call:
http://edge.media-server.com/m/p/e9dty694/lan/en.
For those unable to listen to the live call, a taped replay will
be available at 9:30 a.m. Mountain
Time on Jan. 26, 2012, until
9:30 a.m. MT on Feb. 2, 2012. To access the replay, call
800-633-8284 (North American callers) or 402-977-9140
(international callers) and use reservation number 21564918.
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 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 (Fourth
Quarter 2011)
|
|
Unaudited
Condensed Consolidated Statements of Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
($ in millions, except per share
amounts)
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$ 2,051.7
|
|
$ 1,995.2
|
|
$ 8,630.9
|
|
$ 7,630.0
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (excluding
depreciation and amortization)
|
|
(1,702.8)
|
|
(1,639.4)
|
|
(7,081.2)
|
|
(6,254.1)
|
|
Depreciation and
amortization
|
|
(78.9)
|
|
(73.3)
|
|
(301.1)
|
|
(265.5)
|
|
Selling, general and
administrative
|
|
(99.2)
|
|
(106.9)
|
|
(381.4)
|
|
(356.8)
|
|
Business consolidation and other
activities
|
|
(10.6)
|
|
1.2
|
|
(30.3)
|
|
11.0
|
|
|
|
(1,891.5)
|
|
(1,818.4)
|
|
(7,794.0)
|
|
(6,865.4)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest and
taxes
|
|
160.2
|
|
176.8
|
|
836.9
|
|
764.6
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(42.4)
|
|
(42.7)
|
|
(177.1)
|
|
(149.4)
|
|
Debt refinancing
costs
|
|
-
|
|
(0.7)
|
|
-
|
|
(8.8)
|
|
Total interest
expense
|
|
(42.4)
|
|
(43.4)
|
|
(177.1)
|
|
(158.2)
|
|
Earnings before taxes
|
|
117.8
|
|
133.4
|
|
659.8
|
|
606.4
|
|
Tax provision
|
|
(41.1)
|
|
(33.6)
|
|
(201.3)
|
|
(175.8)
|
|
Equity in results of affiliates,
net of tax
|
|
8.2
|
|
(0.5)
|
|
10.1
|
|
118.0
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from continuing
operations
|
|
84.9
|
|
99.3
|
|
468.6
|
|
548.6
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net of
tax
|
|
0.6
|
|
(1.5)
|
|
(2.3)
|
|
(74.9)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
85.5
|
|
97.8
|
|
466.3
|
|
473.7
|
|
|
|
|
|
|
|
|
|
|
|
Less net earnings attributable
to noncontrolling interests
|
|
(8.0)
|
|
(5.6)
|
|
(22.3)
|
|
(5.7)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to
Ball Corporation
|
|
$
77.5
|
|
$
92.2
|
|
$
444.0
|
|
$
468.0
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share attributable
to Ball Corporation:
|
|
|
|
|
|
|
|
|
|
Basic - continuing
operations
|
|
$
0.48
|
|
$
0.54
|
|
$
2.70
|
|
$
3.00
|
|
Basic -
discontinued operations
|
|
-
|
|
(0.01)
|
|
(0.01)
|
|
(0.41)
|
|
Total basic
earnings per share
|
|
$
0.48
|
|
$
0.53
|
|
$
2.69
|
|
$
2.59
|
|
|
|
|
|
|
|
|
|
|
|
Diluted -
continuing operations
|
|
$
0.47
|
|
$
0.53
|
|
$
2.64
|
|
$
2.96
|
|
Diluted -
discontinued operations
|
|
-
|
|
(0.01)
|
|
(0.01)
|
|
(0.41)
|
|
Total
diluted earnings per share
|
|
$
0.47
|
|
$
0.52
|
|
$
2.63
|
|
$
2.55
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding (000s):
|
|
|
|
|
|
|
|
|
|
Basic
|
|
160,681
|
|
174,018
|
|
165,275
|
|
180,746
|
|
Diluted
|
|
163,909
|
|
177,360
|
|
168,590
|
|
183,538
|
|
|
|
|
|
|
|
|
|
|
Condensed Financials (Fourth
Quarter 2011)
|
|
Unaudited
Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
Year
ended
|
|
|
|
December
31,
|
|
($ in millions)
|
|
2011
|
|
2010
|
|
Cash Flows From Operating
Activities:
|
|
|
|
|
|
Net earnings
|
|
$ 466.3
|
|
$ 473.7
|
|
Discontinued operations,
net of tax
|
|
2.3
|
|
74.9
|
|
Depreciation and
amortization
|
|
301.1
|
|
265.5
|
|
Gains and equity earnings
related to acquisitions
|
|
(10.1)
|
|
(118.0)
|
|
Taxes
|
|
53.2
|
|
25.5
|
|
Other, net
|
|
93.7
|
|
65.2
|
|
Changes in working
capital
|
|
50.2
|
|
(286.5)
|
|
Cash
provided by (used in) continuing operating activities
|
|
956.7
|
|
500.3
|
|
Cash
provided by (used in) discontinued operating activities
|
|
(8.3)
|
|
14.9
|
|
|
|
948.4
|
|
515.2
|
|
Cash Flows From Investing
Activities:
|
|
|
|
|
Additions to property,
plant and equipment
|
|
(443.8)
|
|
(250.2)
|
|
Business acquisitions,
net of cash acquired
|
|
(295.2)
|
|
(62.0)
|
|
Acquisitions of equity
affiliates, net of cash acquired
|
|
-
|
|
(63.8)
|
|
Proceeds from sale of
business
|
|
-
|
|
261.5
|
|
Other, net
|
|
1.0
|
|
13.5
|
|
Cash
provided by (used in) continuing investing activities
|
|
(738.0)
|
|
(101.0)
|
|
Cash
provided by (used in) discontinued investing activities
|
|
-
|
|
(9.2)
|
|
|
|
(738.0)
|
|
(110.2)
|
|
Cash Flows From Financing
Activities:
|
|
|
|
|
|
Changes in borrowings,
net
|
|
306.8
|
|
101.8
|
|
Purchases of common
stock, net of issuances
|
|
(473.9)
|
|
(506.7)
|
|
Common
dividends
|
|
(45.7)
|
|
(35.8)
|
|
Other, net
|
|
(4.0)
|
|
(18.9)
|
|
Cash
provided by (used in) financing activities
|
|
(216.8)
|
|
(459.6)
|
|
Effect of exchange rate changes
on cash
|
|
20.2
|
|
(4.0)
|
|
Change in cash
|
|
13.8
|
|
(58.6)
|
|
Cash-beginning of
period
|
|
152.0
|
|
210.6
|
|
Cash-end of
period
|
|
$ 165.8
|
|
$ 152.0
|
|
|
|
|
|
|
Condensed Financials (Fourth
Quarter 2011)
|
|
|
|
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
As of
December 31,
|
|
($ in millions)
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$ 165.8
|
|
$ 152.0
|
|
Receivables,
net
|
|
910.4
|
|
849.7
|
|
Inventories,
net
|
|
1,072.5
|
|
1,083.9
|
|
Deferred taxes and
other current assets
|
|
173.2
|
|
220.1
|
|
Total current assets
|
|
2,321.9
|
|
2,305.7
|
|
Property, plant and equipment,
net
|
|
2,265.4
|
|
2,048.2
|
|
Goodwill
|
|
2,247.1
|
|
2,105.3
|
|
Other assets, net
|
|
450.2
|
|
468.5
|
|
|
|
|
|
|
|
Total
assets
|
|
$ 7,284.6
|
|
$ 6,927.7
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
|
$ 447.4
|
|
$ 110.7
|
|
Payables and
accrued liabilities
|
|
1,408.7
|
|
1,272.6
|
|
Total current liabilities
|
|
1,856.1
|
|
1,383.3
|
|
Long-term debt
|
|
2,696.7
|
|
2,701.6
|
|
Other long-term
liabilities
|
|
1,353.8
|
|
1,184.7
|
|
Shareholders'
equity
|
|
1,378.0
|
|
1,658.1
|
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
|
$ 7,284.6
|
|
$ 6,927.7
|
|
|
|
|
|
|
Notes to Condensed Financials
(Fourth Quarter 2011)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Business Segment
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
($ in millions)
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
Sales-
|
|
|
|
|
|
|
|
|
|
|
Metal beverage packaging,
Americas & Asia
|
|
$ 1,094.0
|
|
$ 1,035.4
|
|
$ 4,415.8
|
|
$ 3,850.4
|
|
|
Metal beverage packaging,
Europe
|
|
451.0
|
|
408.5
|
|
2,017.6
|
|
1,699.1
|
|
|
Metal food & household
packaging, Americas
|
|
322.8
|
|
352.6
|
|
1,426.4
|
|
1,370.1
|
|
|
Aerospace &
technologies
|
|
185.1
|
|
200.6
|
|
784.6
|
|
713.7
|
|
|
Corporate and intercompany
eliminations
|
|
(1.2)
|
|
(1.9)
|
|
(13.5)
|
|
(3.3)
|
|
|
|
Net
sales
|
|
$ 2,051.7
|
|
$ 1,995.2
|
|
$ 8,630.9
|
|
$ 7,630.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest and
taxes-
|
|
|
|
|
|
|
|
|
|
|
Metal beverage packaging,
Americas & Asia
|
|
$ 119.9
|
|
$ 117.0
|
|
$ 481.7
|
|
$ 418.3
|
|
|
Business consolidation and other
activities
|
|
3.8
|
|
(0.4)
|
|
(11.0)
|
|
-
|
|
|
|
Total metal beverage packaging,
Americas & Asia
|
|
123.7
|
|
116.6
|
|
470.7
|
|
418.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metal beverage packaging,
Europe
|
|
41.0
|
|
42.3
|
|
243.7
|
|
213.5
|
|
|
Business consolidation and other
activities
|
|
(11.2)
|
|
(3.2)
|
|
(14.1)
|
|
(3.2)
|
|
|
|
Total metal beverage packaging,
Europe
|
|
29.8
|
|
39.1
|
|
229.6
|
|
210.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metal food & household
packaging, Americas
|
|
13.1
|
|
24.6
|
|
133.7
|
|
129.1
|
|
|
Business consolidation and other
activities
|
|
(0.5)
|
|
5.1
|
|
(1.9)
|
|
18.3
|
|
|
|
Total metal food & household
packaging, Americas
|
|
12.6
|
|
29.7
|
|
131.8
|
|
147.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace &
technologies
|
|
18.0
|
|
19.3
|
|
79.6
|
|
69.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment earnings before
interest and taxes
|
|
184.1
|
|
204.7
|
|
911.7
|
|
845.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Undistributed corporate expenses
and
|
|
|
|
|
|
|
|
|
|
|
|
intercompany eliminations,
net
|
|
(21.2)
|
|
(27.6)
|
|
(71.5)
|
|
(77.1)
|
|
|
Business consolidation and other
activities
|
|
(2.7)
|
|
(0.3)
|
|
(3.3)
|
|
(4.1)
|
|
|
|
Total undistributed corporate
expenses, net
|
|
(23.9)
|
|
(27.9)
|
|
(74.8)
|
|
(81.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
interest and taxes
|
|
160.2
|
|
176.8
|
|
836.9
|
|
764.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(42.4)
|
|
(43.4)
|
|
(177.1)
|
|
(158.2)
|
|
Tax provision
|
|
(41.1)
|
|
(33.6)
|
|
(201.3)
|
|
(175.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in results of
affiliates
|
|
(1.0)
|
|
(0.5)
|
|
0.9
|
|
12.1
|
|
Gains and equity earnings
related to acquisitions
|
|
9.2
|
|
-
|
|
9.2
|
|
105.9
|
|
|
Total equity in results of
affiliates
|
|
8.2
|
|
(0.5)
|
|
10.1
|
|
118.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from continuing
operations
|
|
$
84.9
|
|
$
99.3
|
|
$
468.6
|
|
$
548.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes to Condensed Financials
(Fourth Quarter 2011)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2. Significant Business
Consolidation Activities and Other Noncomparable
Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the fourth quarter, the
company recorded charges of $9.6 million ($9.6 million after tax)
for the write down of the Lublin, Poland, facility to net
realizable value, as well as charges of $4.1 million ($2.6 million
after tax) incurred in connection with the planned relocation of
the company's European headquarters from Germany to Switzerland in
2012. Also during the fourth quarter, Ball recorded a net gain of
$6.8 million ($4.2 million after tax) for the sale of tangible
assets from the Torrance, California, facility less costs of
closing the facility (see discussion below). Additional charges
included $3.0 million ($1.8 million after tax) related to capacity
reduction at the Columbus, Ohio, metal beverage plant and costs
associated with previously closed facilities.
|
|
|
|
|
|
|
|
|
|
|
|
In October 2011, Ball acquired
its partners' interests in a former joint venture metal beverage
can plant in Qingdao, PRC. As a result of the required purchase
accounting, the company recorded a gain in equity in results of
affiliates of $9.2 million, related to the previously held interest
in the joint venture.
|
|
|
|
|
|
|
|
|
|
|
|
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 $14.2
million ($8.6 million after tax) during the first nine months of
2011, respectively, in connection with these activities.
Additionally, in September 2011, the company recorded a charge of
$1.4 million ($0.9 million after tax) in connection with the
discontinued production of certain products.
|
|
|
|
|
|
|
|
|
|
|
|
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 2011, 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 in equity in results of affiliates, related
to the 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 $258.7 million, after
customary closing adjustments. The sale of Ball's plastic packaging
business included five U.S. plants that manufacture polyethylene
terephthalate (PET) bottles and preforms and polypropylene bottles,
as well as associated customer contracts and other related assets.
In connection with the sale, the company reported discontinued
operations as detailed in the following table.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
($ in millions)
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
-
|
|
$
-
|
|
$
-
|
|
$
318.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
operations
|
$
-
|
|
$
0.2
|
|
$
-
|
|
$
3.5
|
|
|
Gain (loss) on sale of
business
|
-
|
|
(1.3)
|
|
(0.8)
|
|
8.6
|
|
|
Impairment loss
|
-
|
|
-
|
|
-
|
|
(107.1)
|
|
|
Business consolidation and other activities
|
1.0
|
|
(0.3)
|
|
(3.0)
|
|
(10.4)
|
|
|
Tax benefit
(provision)
|
(0.4)
|
|
(0.1)
|
|
1.5
|
|
30.5
|
|
|
Discontinued operations,
net of tax
|
$
0.6
|
|
$
(1.5)
|
|
$
(2.3)
|
|
$
(74.9)
|
|
|
|
|
|
|
|
|
|
|
Notes to Condensed Financials
(Fourth Quarter 2011)
|
|
|
|
|
|
|
|
|
|
|
|
|
2. Significant Business
Consolidation Activities and Other Noncomparable Items
(cont'd)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income of $5.0 million ($3.0
million after tax) was recorded in the fourth quarter of 2010 for
the gain on sale (net of estimated lease exit costs) and the
subsequent leaseback of Ball's Richmond, British Columbia,
facility. Also included in the fourth quarter was a charge of $2.6
million ($2.6 million after tax) to write off capitalized
installation costs associated with the decision not to complete a
plant in Lublin, Poland; a charge of $0.6 million ($0.4 million
after tax) for transaction costs incurred for the announced first
quarter 2011 acquisition of Aerocan S.A.S. in Europe and net
charges of $0.6 million ($0.3 million after tax) for individually
insignificant items.
|
|
|
|
|
|
|
|
|
|
|
|
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 in results of affiliates of $24.1 million, related to the
previously held interest in the joint venture.
|
|
|
|
|
|
|
|
|
|
|
|
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. In December 2010, the company refinanced its
senior credit facilities and recorded a charge of $0.7 million
($0.4 million after tax) for the write off of unamortized financing
costs.
|
|
|
|
|
|
|
|
|
|
|
|
A summary of the effects of the
above transactions on after-tax earnings is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
($ in millions, except per share
amounts)
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to
Ball Corporation, as reported
|
$
77.5
|
|
$
92.2
|
|
$
444.0
|
|
$
468.0
|
|
|
Discontinued operations, net of
tax
|
(0.6)
|
|
1.5
|
|
2.3
|
|
74.9
|
|
|
Business consolidation and other
activities, net of tax
|
10.4
|
|
0.3
|
|
22.5
|
|
(9.3)
|
|
|
Gain and equity earnings related to acquisitions, net of tax
|
(9.2)
|
|
-
|
|
(9.2)
|
|
(105.9)
|
|
|
Debt refinancing costs, net of
tax
|
-
|
|
0.4
|
|
-
|
|
5.3
|
|
|
Net earnings attributable
to Ball Corporation
|
|
|
|
|
|
|
|
|
|
before above transactions (Comparable Earnings)
|
$
78.1
|
|
$
94.4
|
|
$
459.6
|
|
$
433.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Per diluted share before
above transactions
|
|
|
|
|
|
|
|
|
|
(Comparable
Earnings Per Share)
|
$
0.48
|
|
$
0.53
|
|
$
2.73
|
|
$
2.36
|
|
|
|
|
|
|
|
|
|
|
|
A summary of the effects of the
above transactions on earnings before interest and taxes
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
($ in millions)
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest and
taxes, as reported
|
$
160.2
|
|
$
176.8
|
|
$
836.9
|
|
$
764.6
|
|
|
Business consolidation and other
activities
|
10.6
|
|
(1.2)
|
|
30.3
|
|
(11.0)
|
|
|
EBIT before above
transactions (Comparable EBIT)
|
$
170.8
|
|
$
175.6
|
|
$
867.2
|
|
$
753.6
|
|
|
|
|
|
|
|
|
|
|
|
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