WESTMINSTER, Colo.,
Aug. 5, 2021 /PRNewswire/ -- Ball
Corporation (NYSE: BLL) today reported, on a U.S. GAAP basis,
second quarter 2021 net earnings attributable to the corporation of
$202 million (including net after-tax
charges of $85 million, or
25 cents per diluted share for
business consolidation and other non-comparable items), or
61 cents per diluted share, on sales
of $3.5 billion, compared to
$94 million net earnings attributable
to the corporation, or 28 cents per
diluted share (including net after-tax charges of $122 million, or 37
cents per diluted share for business consolidation and other
non-comparable items), on sales of $2.8
billion in 2020. Results for the first six months of 2021
were net earnings attributable to the corporation of $402 million, or $1.20 per diluted share, on sales of $6.6 billion compared to $117 million, or 35
cents per diluted share, on sales of $5.6 billion for the first six months of
2020.
Ball's second quarter and year-to-date 2021 comparable earnings
per diluted share were 86 cents and
$1.58, respectively, versus second
quarter and year-to-date 2020 comparable earnings per diluted share
of 65 cents and $1.26, respectively.
Details of comparable segment earnings, business consolidation
activities, business segment descriptions and other non-comparable
items can be found in the notes to the unaudited condensed
consolidated financial statements that accompany this news release.
References to volume data represent units shipped.
"During the quarter, the company increased comparable earnings
per diluted share by 32% on 13% aluminum beverage volume growth and
20% aluminum aerosol growth, and secured new aerospace contracts to
achieve record backlog. In addition to global operations executing
at a high level, the company started up the new Pittston, Pennsylvania, beverage can
manufacturing facility, initiated further global capacity
investments and successfully launched The Aluminum Cup™ at retail
in the United States. Global
projects in North America,
South America and EMEA are
supported by long-term contracts and will contribute meaningfully
to 2021 and beyond," said John A.
Hayes, chairman and chief executive officer.
"Our focus remains on our employees' safety, training and
development, the efficient startups of EVA-enhancing projects and
opportunities to build optimal inventory to further improve
operational efficiencies and customer service. Positive momentum
continues across the entire company. Our recently announced 2030
sustainability goals and plans to expand the return of value to
shareholders through higher dividends and share repurchases while
deploying significant capital to increase the availability of
sustainable aluminum packaging and best-in-class aerospace
technologies will benefit our stakeholders in 2021 and beyond,"
said Daniel W. Fisher,
president.
Beverage Packaging, North and Central America
Beverage packaging, North and Central
America, comparable segment operating earnings for the
second quarter 2021 were $193 million
on sales of $1.5 billion compared to
$189 million on sales of $1.3 billion in 2020. For the first six months,
comparable segment operating earnings were $333 million on sales of $2.8 billion compared to $335 million on sales of $2.4 billion during the same period in 2020.
Year-over-year sales reflect higher shipments, the contractual pass
through of higher aluminum costs and improved price/mix.
Second quarter comparable segment earnings reflect 5% volume
growth, the benefits from new contractual terms and higher
specialty mix largely offset by startup and labor costs associated
with three new manufacturing plants and the impact of low finished
goods inventory entering peak season.
Demand for aluminum beverage cans and bottles continues to
outstrip supply across North
America. The company's new Glendale, Arizona, facility successfully
started up its second and third lines during the quarter, and the
new Pittston, Pennsylvania,
facility started up initial beverage can production on two lines
late in the second quarter. Project execution is on or above our
targets and additional capacity investments in North America are supported by long duration
contracts and will serve growing demand for aluminum beverage cans
across all beverage categories.
The company's new aluminum end manufacturing facility in
Bowling Green, Kentucky, is
scheduled to begin production in the fourth quarter and full-year
2021 startup costs are still anticipated to be in the range of
$50 million.
Beverage Packaging, EMEA
Beverage packaging, EMEA, comparable segment operating earnings
for second quarter were $124 million
on sales of $906 million compared to
$63 million on sales of $699 million in 2020. For the first six months,
comparable segment operating earnings were $224 million on sales of $1.7 billion compared to $131 million on sales of $1.4 billion during the same period in 2020.
Year-over-year sales reflect higher shipments, the contractual pass
through of higher aluminum costs and favorable foreign
exchange.
Second quarter comparable segment earnings reflect 18% segment
volume growth, specialty mix and strong year-over-year consumption
trends across Europe. Packaging
mix shift to sustainable aluminum cans for traditional and
non-traditional beverages continues, and demand is outstripping
supply. In addition to 2021 beverage can line investments across
the region, the company recently announced its intention to build
two new beverage can manufacturing facilities in the U.K. and
Russia with production anticipated
to begin in 2023. Line speed ups and greenfield projects are
largely on track and will support growing demand for aluminum
beverage cans in 2021 and beyond.
Beverage Packaging, South
America
Beverage packaging, South
America, comparable segment operating earnings for second
quarter were $78 million on sales of
$452 million compared to $46 million on sales of $329 million in 2020. For the first six months,
comparable segment operating earnings were $171 million on sales of $939 million compared to $109 million on sales of $734 million during the same period in 2020.
Year-over-year sales reflect higher shipments, the contractual pass
through of higher aluminum costs and improved mix.
Segment volume ended the quarter up 15% and second quarter
earnings also reflect favorable price/mix and solid operating
performance across South America.
In Brazil, demand remains strong
and continues to outstrip supply despite COVID-19 related
restrictions and cooler than anticipated weather.
To support long-term contracted volume growth and can-filling
investments across South America,
multiple can manufacturing investments are ongoing across our
existing footprint in 2021 and beyond. The previously announced
multi-line facility in Frutal, Brazil, is on schedule to begin production in
the second half of 2021.
Aerospace
Aerospace comparable segment operating earnings for the second
quarter were $34 million on sales of
$459 million compared to $30 million on sales of $438 million in 2020. For the first six months,
comparable segment operating earnings were $69 million on sales of $883 million compared to $70 million on sales of $870 million during the same period in 2020.
Contracted backlog ended the quarter at $3
billion and contracts won, but not yet booked into
contracted backlog was $5.1
billion.
Segment results reflect moderation in the inefficiencies created
from certain customer supply-chain disruptions. The company
continues to win defense, climate change and Earth-monitoring
contracts to provide mission-critical programs and technologies to
U.S. government, defense, intelligence, and reconnaissance and
surveillance customers. New contracts booked late in the second
quarter are anticipated to ramp quickly and full-year earnings
remain on track to grow double-digits. Hiring to support future
growth and multiple projects to expand manufacturing capacity, test
capabilities, engineering, and support workspace remain on
track.
Non-reportable
In addition to undistributed corporate expenses, the results for
the company's global aluminum aerosol business, beverage can
manufacturing facilities in India,
Saudi Arabia and Myanmar and investments in the company's new
aluminum cup business continue to be reported in other
non-reportable.
Second quarter and year-to-date results reflect higher
year-over-year undistributed corporate expenses and marketing costs
associated with the aluminum cup national retail launch. During the
quarter, the company's global aluminum aerosol volumes increased
20% versus 2020, and customers continue to pursue sustainable
personal care packaging solutions including the company's new
Infinity aluminum bottle.
Outlook
"The company is well-positioned for long-term growth and we
recently accelerated return of value to shareholders in 2021 by
increasing our dividend 33% and initiating share repurchases of at
least $500 million. Our financial
strength and flexibility provide the opportunity to return value to
shareholders while also investing in excess of $1.5 billion in capital expenditures to further
grow cash from operations, earnings and EVA dollars. We look
forward to investing in more organic growth opportunities and
returning even more to our shareholders in the future as our cash
from operations continues to accelerate," said Scott C. Morrison, executive vice president and
chief financial officer.
"We continue to perform at a high level despite certain
transitory inefficiencies and costs. Our talented team, Drive for
10 vision, enduring culture, capital allocation discipline and
strong demand for our sustainable packaging and technologies will
enable our long-term growth. In 2021 and beyond, we look forward to
growing our cash from operations and EVA dollars on an even larger
capital base while returning capital to our shareholders and
exceeding our long-term diluted earnings per share growth goal of
at least 10 to 15%," Hayes said.
About Ball Corporation
Ball Corporation supplies innovative, sustainable aluminum
packaging solutions for beverage, personal care and household
products customers, as well as aerospace and other technologies and
services primarily for the U.S. government. Ball Corporation and
its subsidiaries employ 21,500 people worldwide and reported 2020
net sales of $11.8 billion. For more
information, visit www.ball.com, or connect with us on Facebook or
Twitter.
Conference Call Details
Ball Corporation (NYSE: BLL) will hold its second quarter 2021
earnings call today at 9 a.m. Mountain
time (11 a.m. Eastern). The
North American toll-free number for the call is 877-276-0901.
International callers should dial 212-231-2909. Please use the
following URL for a webcast of the live call:
https://edge.media-server.com/mmc/p/oygjyhce
For those unable to listen to the live call, a taped replay will
be available from 11 a.m. Mountain
time on August 5, 2021, until
11 a.m. Mountain time on August 12, 2021. To access the replay, call
800-633-8284 (North American callers) or 402-977-9140
(international callers) and use reservation number 21995645. 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/investors
under "news and presentations."
Forward-Looking Statements
This release contains "forward-looking" statements concerning
future events and financial performance. Words such as "expects,"
"anticipates," "estimates," "believes," and similar expressions
typically identify forward-looking statements, which are generally
any statements other than statements of historical fact. Such
statements are based on current expectations or views of the future
and are subject to risks and uncertainties, which could cause
actual results or events to differ materially from those expressed
or implied. You should therefore not place undue reliance upon any
forward-looking statements and any such statements should be read
in conjunction with, and qualified in their entirety by, the
cautionary statements referenced below. 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 factors, risks and uncertainties that could cause
actual outcomes and results to be different are summarized in
filings with the Securities and Exchange Commission, including
Exhibit 99 in our Form 10-K, which are available on our website and
at www.sec.gov. Additional factors that might affect: a) our
packaging segments include product capacity, supply, and demand
constraints and fluctuations and changes in consumption patterns;
availability/cost of raw materials, equipment, and logistics;
competitive packaging, pricing and substitution; changes in climate
and weather; footprint adjustments and other manufacturing changes,
including the startup of new facilities and lines; failure to
achieve synergies, productivity improvements or cost reductions;
unfavorable mandatory deposit or packaging laws; customer and
supplier consolidation; power and supply chain interruptions;
changes in major customer or supplier contracts or loss of a major
customer or supplier; political instability and sanctions; currency
controls; changes in foreign exchange or tax rates; and tariffs,
trade actions, or other governmental actions, including business
restrictions and shelter-in-place orders in any country or
jurisdiction affecting goods produced by us or in our supply chain,
including imported raw materials; b) our aerospace segment include
funding, authorization, availability and returns of government and
commercial contracts; and delays, extensions and technical
uncertainties affecting segment contracts; c) the Company as a
whole include those listed above plus: the extent to which
sustainability-related opportunities arise and can be capitalized
upon; changes in senior management, succession, and the ability to
attract and retain skilled labor; regulatory actions or issues
including those related to tax, ESG reporting, competition,
environmental, health and workplace safety, including U.S. FDA and
other actions or public concerns affecting products filled in our
containers, or chemicals or substances used in raw materials or in
the manufacturing process; technological developments and
innovations; the ability to manage cyber threats; litigation;
strikes; disease; pandemic; labor cost changes; rates of return on
assets of the Company's defined benefit retirement plans; pension
changes; uncertainties surrounding geopolitical events and
governmental policies both in the U.S. and in other countries,
including policies, orders, and actions related to COVID-19;
reduced cash flow; interest rates affecting our debt; and
successful or unsuccessful joint ventures, acquisitions and
divestitures, and their effects on our operating results and
business generally.
|
|
Condensed
Financial Statements (Second Quarter 2021)
|
|
Unaudited
Condensed Consolidated Statements of Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
($ in millions,
except per share amounts)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$
|
3,459
|
|
$
|
2,801
|
|
$
|
6,584
|
|
$
|
5,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
(excluding depreciation and amortization)
|
|
|
(2,760)
|
|
|
(2,230)
|
|
|
(5,253)
|
|
|
(4,445)
|
Depreciation and
amortization
|
|
|
(172)
|
|
|
(170)
|
|
|
(340)
|
|
|
(339)
|
Selling, general and
administrative
|
|
|
(166)
|
|
|
(111)
|
|
|
(323)
|
|
|
(242)
|
Business consolidation
and other activities
|
|
|
12
|
|
|
(112)
|
|
|
5
|
|
|
(227)
|
|
|
|
(3,086)
|
|
|
(2,623)
|
|
|
(5,911)
|
|
|
(5,253)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
interest and taxes
|
|
|
373
|
|
|
178
|
|
|
673
|
|
|
333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
(66)
|
|
|
(67)
|
|
|
(133)
|
|
|
(138)
|
Debt refinancing and
other costs
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(40)
|
Total interest
expense
|
|
|
(66)
|
|
|
(67)
|
|
|
(133)
|
|
|
(178)
|
Earnings before
taxes
|
|
|
307
|
|
|
111
|
|
|
540
|
|
|
155
|
Tax (provision)
benefit
|
|
|
(116)
|
|
|
(23)
|
|
|
(148)
|
|
|
(19)
|
Equity in results of
affiliates, net of tax
|
|
|
11
|
|
|
4
|
|
|
10
|
|
|
(21)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
|
202
|
|
|
92
|
|
|
402
|
|
|
115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to noncontrolling interests, net of tax
|
|
|
-
|
|
|
2
|
|
|
-
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Ball Corporation
|
|
$
|
202
|
|
$
|
94
|
|
$
|
402
|
|
$
|
117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.62
|
|
$
|
0.29
|
|
$
|
1.23
|
|
$
|
0.36
|
Diluted
|
|
$
|
0.61
|
|
$
|
0.28
|
|
$
|
1.20
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding (000s):
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
327,625
|
|
|
325,994
|
|
|
327,718
|
|
|
325,670
|
Diluted
|
|
|
333,378
|
|
|
331,717
|
|
|
333,615
|
|
|
331,884
|
|
|
|
Condensed
Financial Statements (Second Quarter 2021)
|
|
Unaudited
Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
|
June
30,
|
($ in
millions)
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
Net earnings
|
|
$
|
402
|
|
$
|
115
|
Depreciation and
amortization
|
|
|
340
|
|
|
339
|
Business consolidation
and other activities
|
|
|
(5)
|
|
|
227
|
Deferred tax provision
(benefit)
|
|
|
73
|
|
|
(50)
|
Other, net
|
|
|
(146)
|
|
|
78
|
Changes in working
capital
|
|
|
(496)
|
|
|
(941)
|
Cash provided by (used
in) operating activities
|
|
|
168
|
|
|
(232)
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(757)
|
|
|
(447)
|
Business
dispositions
|
|
|
1
|
|
|
(17)
|
Other, net
|
|
|
20
|
|
|
23
|
Cash provided by (used
in) investing activities
|
|
|
(736)
|
|
|
(441)
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
Changes in borrowings,
net
|
|
|
5
|
|
|
(172)
|
Net issuances
(purchases) of common stock
|
|
|
(128)
|
|
|
(82)
|
Dividends
|
|
|
(99)
|
|
|
(100)
|
Other, net
|
|
|
-
|
|
|
(34)
|
Cash provided by (used
in) financing activities
|
|
|
(222)
|
|
|
(388)
|
Effect of currency
exchange rate changes on cash, cash equivalents and restricted
cash
|
|
|
(5)
|
|
|
(92)
|
Change in cash,
cash equivalents and restricted cash
|
|
|
(795)
|
|
|
(1,153)
|
Cash, cash
equivalents and restricted cash - beginning of
period
|
|
|
1,381
|
|
|
1,806
|
Cash, cash
equivalents and restricted cash - end of period
|
|
$
|
586
|
|
$
|
653
|
|
|
|
Condensed
Financial Statements (Second Quarter 2021)
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
June
30,
|
($ in
millions)
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
571
|
|
$
|
643
|
Receivables,
net
|
|
|
2,620
|
|
|
1,810
|
Inventories,
net
|
|
|
1,490
|
|
|
1,388
|
Other current
assets
|
|
|
348
|
|
|
169
|
Total current
assets
|
|
|
5,029
|
|
|
4,010
|
Property, plant
and equipment, net
|
|
|
5,915
|
|
|
4,662
|
Goodwill
|
|
|
4,448
|
|
|
4,314
|
Intangible assets,
net
|
|
|
1,785
|
|
|
1,902
|
Other
assets
|
|
|
1,969
|
|
|
1,722
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
19,146
|
|
$
|
16,610
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Short-term debt and
current portion of long-term debt
|
|
$
|
771
|
|
$
|
523
|
Payables and other
accrued liabilities
|
|
|
5,146
|
|
|
3,603
|
Total current
liabilities
|
|
|
5,917
|
|
|
4,126
|
Long-term
debt
|
|
|
6,970
|
|
|
7,158
|
Other long-term
liabilities
|
|
|
2,558
|
|
|
2,496
|
Equity
|
|
|
3,701
|
|
|
2,830
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
$
|
19,146
|
|
$
|
16,610
|
Notes to the Condensed Financial Statements (Second Quarter
2021)
1. Business Segment Information
Ball's operations are organized and reviewed by management along
its product lines and geographical areas and presented in the four
reportable segments outlined below.
Beverage packaging, North and Central America: Consists of
operations in the U.S., Canada and
Mexico that manufacture and sell
aluminum beverage containers.
Beverage packaging, EMEA: Consists of operations
in numerous countries throughout Europe, including Russia, as well as Egypt and Turkey, that manufacture and sell aluminum
beverage containers throughout those regions.
Beverage packaging, South
America: Consists of operations in
Brazil, Argentina, Paraguay and Chile that manufacture and sell aluminum
beverage containers throughout most of South America.
Aerospace: Consists of operations that
manufacture and sell aerospace and other related products and the
provision of services used in the defense, civil space and
commercial space industries.
Other consists of a non-reportable operating segment (beverage
packaging, other) that manufactures and sells aluminum beverage
containers; a non-reportable segment that manufactures and sells
extruded aluminum aerosol containers and aluminum slugs (aerosol
packaging); a non-reportable operating segment that manufactures
and sells aluminum cups (aluminum cups); undistributed corporate
expenses; intercompany eliminations and other business
activities.
The company also has investments in operations in Guatemala, Panama, the U.S. and Vietnam that are accounted for under the
equity method of accounting and, accordingly, those results are not
included in segment sales or earnings. Ball has entered into an
agreement to sell its minority-owned investment in South Korea, which is expected to close during
the third quarter of 2021. The company will receive total proceeds
of $120 million, of which
$30 million was received during
June 2021, which is presented in
payables and other accrued liabilities in Ball's unaudited
condensed consolidated balance sheets.
1. Business Segment Information
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
June
30,
|
|
|
June
30,
|
($ in
millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
|
|
|
|
|
|
|
|
|
|
Beverage packaging,
North and Central America
|
$
|
1,524
|
|
$
|
1,267
|
|
$
|
2,820
|
|
$
|
2,448
|
Beverage packaging,
EMEA
|
|
906
|
|
|
699
|
|
|
1,702
|
|
|
1,368
|
Beverage packaging,
South America
|
|
452
|
|
|
329
|
|
|
939
|
|
|
734
|
Aerospace
|
|
459
|
|
|
438
|
|
|
883
|
|
|
870
|
Reportable segment
sales
|
|
3,341
|
|
|
2,733
|
|
|
6,344
|
|
|
5,420
|
Other
|
|
118
|
|
|
68
|
|
|
240
|
|
|
166
|
Net
sales
|
$
|
3,459
|
|
$
|
2,801
|
|
$
|
6,584
|
|
$
|
5,586
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
operating earnings
|
|
|
|
|
|
|
|
|
|
|
|
Beverage packaging,
North and Central America
|
$
|
193
|
|
$
|
189
|
|
$
|
333
|
|
$
|
335
|
Beverage packaging,
EMEA
|
|
124
|
|
|
63
|
|
|
224
|
|
|
131
|
Beverage packaging,
South America
|
|
78
|
|
|
46
|
|
|
171
|
|
|
109
|
Aerospace
|
|
34
|
|
|
30
|
|
|
69
|
|
|
70
|
Reportable segment
comparable operating earnings
|
|
429
|
|
|
328
|
|
|
797
|
|
|
645
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
(a)
|
|
(30)
|
|
|
(1)
|
|
|
(53)
|
|
|
(11)
|
Comparable operating earnings
|
|
399
|
|
|
327
|
|
|
744
|
|
|
634
|
Reconciling
items
|
|
|
|
|
|
|
|
|
|
|
|
Business
consolidation and other activities
|
|
12
|
|
|
(112)
|
|
|
5
|
|
|
(227)
|
Amortization of
acquired Rexam intangibles
|
|
(38)
|
|
|
(37)
|
|
|
(76)
|
|
|
(74)
|
Earnings before
interest and taxes
|
$
|
373
|
|
$
|
178
|
|
$
|
673
|
|
$
|
333
|
|
|
|
|
(a)
|
Includes
undistributed corporate expenses, net, of $28 million and $6
million for the three months ended June 30, 2021 and 2020,
respectively, and $54 million and $20 million for the six months
ended June 30, 2021 and 2020, respectively.
|
2. Non-U.S. GAAP Measures
Non-U.S. GAAP Measures – Non-U.S. GAAP measures
should not be considered in isolation. They should not be
considered superior to, or a substitute for, financial measures
calculated in accordance with U.S. GAAP and may not be comparable
to similarly titled measures of other companies. Presentations of
earnings and cash flows presented in accordance with U.S. GAAP are
available in the company's earnings releases and quarterly and
annual regulatory filings. Information reconciling forward-looking
U.S. GAAP measures to non-U.S. GAAP measures is not available
without unreasonable effort. We have not provided guidance for the
most directly comparable U.S. GAAP financial measures, as they are
not available without unreasonable effort due to the high
variability, complexity and low visibility with respect to certain
special items, including restructuring charges, business
consolidation and other costs, gains and losses related to
acquisition and divestiture of businesses, the ultimate outcome of
certain legal or tax proceedings and other non-comparable items.
These items are uncertain, depend on various factors and could be
material to our results computed in accordance with U.S. GAAP.
Comparable Earnings Before Interest, Taxes, Depreciation and
Amortization (Comparable EBITDA), Comparable Operating Earnings,
Comparable Net Earnings, Comparable Diluted Earnings Per Share and
Net Debt – Comparable EBITDA is earnings before interest,
taxes, depreciation and amortization, business consolidation and
other non-comparable costs. Comparable Operating Earnings is
earnings before interest, taxes, business consolidation and other
non-comparable costs. Comparable Net Earnings is net earnings
attributable to Ball Corporation before business consolidation and
other non-comparable costs after tax. Comparable Diluted Earnings
Per Share is Comparable Net Earnings divided by diluted weighted
average shares outstanding. We use Comparable EBITDA, Comparable
Operating Earnings, Comparable Net Earnings, and Comparable Diluted
Earnings Per Share internally to evaluate the company's operating
performance. Net Debt is total debt less cash and cash equivalents,
which are derived directly from the company's financial statements.
Ball management uses Net Debt to Comparable EBITDA and Comparable
EBITDA to interest expense as metrics to monitor the credit quality
of Ball Corporation.
2. Non-U.S. GAAP Measures (continued)
Please see the company's website for further details of the
company's non-U.S. GAAP financial measures at
www.ball.com/investors under the "FINANCIALS" tab.
|
|
A summary of
the effects of non-comparable items on after tax earnings is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Six Months
Ended
|
|
|
June
30,
|
|
|
June
30,
|
($ in millions,
except per share amounts)
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Ball Corporation
|
|
$
|
202
|
|
|
$
|
94
|
|
|
$
|
402
|
|
|
$
|
117
|
Business
consolidation and other activities
|
|
|
(12)
|
|
|
|
112
|
|
|
|
(5)
|
|
|
|
227
|
Amortization of
acquired Rexam intangibles
|
|
|
38
|
|
|
|
37
|
|
|
|
76
|
|
|
|
74
|
Share of equity
method affiliate non-comparable costs, net of tax
|
|
|
-
|
|
|
|
-
|
|
|
|
6
|
|
|
|
30
|
Debt refinancing and
other costs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
40
|
Noncontrolling
interest share of non-comparable costs, net of tax
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
Non-comparable tax
items
|
|
|
59
|
|
|
|
(27)
|
|
|
|
48
|
|
|
|
(71)
|
Comparable Net
Earnings
|
|
$
|
287
|
|
|
$
|
216
|
|
|
$
|
527
|
|
|
$
|
418
|
Comparable diluted
earnings per share
|
|
$
|
0.86
|
|
|
$
|
0.65
|
|
|
$
|
1.58
|
|
|
$
|
1.26
|
|
|
A summary of
the effects of non-comparable items on earnings before interest and
taxes is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
|
June
30,
|
|
|
|
June
30,
|
($ in
millions)
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Ball Corporation
|
|
$
|
202
|
|
$
|
94
|
|
|
$
|
402
|
|
$
|
117
|
Net loss attributable
to noncontrolling interests, net of tax
|
|
|
-
|
|
|
(2)
|
|
|
|
-
|
|
|
(2)
|
Net
earnings
|
|
|
202
|
|
|
92
|
|
|
|
402
|
|
|
115
|
Equity in results of
affiliates, net of tax
|
|
|
(11)
|
|
|
(4)
|
|
|
|
(10)
|
|
|
21
|
Tax provision
(benefit)
|
|
|
116
|
|
|
23
|
|
|
|
148
|
|
|
19
|
Earnings before
taxes
|
|
|
307
|
|
|
111
|
|
|
|
540
|
|
|
155
|
Total interest
expense
|
|
|
66
|
|
|
67
|
|
|
|
133
|
|
|
178
|
Earnings before
interest and taxes
|
|
|
373
|
|
|
178
|
|
|
|
673
|
|
|
333
|
Business
consolidation and other activities
|
|
|
(12)
|
|
|
112
|
|
|
|
(5)
|
|
|
227
|
Amortization of
acquired Rexam intangibles
|
|
|
38
|
|
|
37
|
|
|
|
76
|
|
|
74
|
Comparable Operating Earnings
|
|
$
|
399
|
|
$
|
327
|
|
|
$
|
744
|
|
$
|
634
|
2. Non-U.S. GAAP Measures (continued)
A summary of
Comparable EBITDA and Net Debt is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve
|
|
Less:
Six
|
|
Add:
Six
|
|
|
|
|
|
Months
Ended
|
|
Months
Ended
|
|
Months
Ended
|
|
Year
Ended
|
|
|
|
December
31,
|
|
June
30,
|
|
June
30,
|
|
June
30,
|
|
($ in millions,
except ratios)
|
|
2020
|
|
2020
|
|
2021
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Ball Corporation
|
|
$
|
585
|
|
$
|
117
|
|
$
|
402
|
|
$
|
870
|
|
Add: Net loss
attributable to noncontrolling interests, net of tax
|
|
|
(3)
|
|
|
(2)
|
|
|
-
|
|
|
(1)
|
|
Net
earnings
|
|
|
582
|
|
|
115
|
|
|
402
|
|
|
869
|
|
Less: Equity in
results of affiliates, net of tax
|
|
|
6
|
|
|
21
|
|
|
(10)
|
|
|
(25)
|
|
Add: Tax provision
(benefit)
|
|
|
99
|
|
|
19
|
|
|
148
|
|
|
228
|
|
Earnings before
taxes
|
|
|
687
|
|
|
155
|
|
|
540
|
|
|
1,072
|
|
Add: Total interest
expense
|
|
|
316
|
|
|
178
|
|
|
133
|
|
|
271
|
|
Earnings before
interest and taxes (EBIT)
|
|
|
1,003
|
|
|
333
|
|
|
673
|
|
|
1,343
|
|
Add: Business
consolidation and other activities (a)
|
|
|
262
|
|
|
227
|
|
|
(5)
|
|
|
30
|
|
Add: Amortization of
acquired Rexam intangibles (a)
|
|
|
150
|
|
|
74
|
|
|
76
|
|
|
152
|
|
Comparable Operating
Earnings
|
|
|
1,415
|
|
|
634
|
|
|
744
|
|
|
1,525
|
|
Add: Depreciation and
amortization
|
|
|
668
|
|
|
339
|
|
|
340
|
|
|
669
|
|
Less: Amortization of
acquired Rexam intangibles (a)
|
|
|
(150)
|
|
|
(74)
|
|
|
(76)
|
|
|
(152)
|
|
Comparable
EBITDA
|
|
$
|
1,933
|
|
$
|
899
|
|
$
|
1,008
|
|
$
|
2,042
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
expense
|
|
$
|
(316)
|
|
$
|
(178)
|
|
$
|
(133)
|
|
$
|
(271)
|
|
Less: Debt
refinancing and other costs
|
|
|
41
|
|
|
40
|
|
|
-
|
|
|
1
|
|
Interest
expense
|
|
$
|
(275)
|
|
$
|
(138)
|
|
$
|
(133)
|
|
$
|
(270)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt at period
end
|
|
|
|
|
|
|
|
|
|
|
$
|
7,741
|
|
Less: Cash and cash
equivalents
|
|
|
|
|
|
|
|
|
|
|
|
(571)
|
|
Net
Debt
|
|
|
|
|
|
|
|
|
|
|
$
|
7,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
EBITDA/Interest Expense (Interest Coverage)
|
|
|
|
|
|
|
|
|
|
|
|
7.6
|
x
|
Net Debt/Comparable
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
3.5
|
x
|
|
|
|
|
(a)
|
For detailed
information on these items, please see the respective quarterly
filings and/or earnings releases, which can be found on our website
at www.ball.com.
|
3. Non-Comparable Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
($ in
millions)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-comparable
items - income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
Beverage packaging,
North and Central America
|
|
|
|
|
|
|
|
|
|
|
|
|
Business consolidation
and other activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Facility closure costs
(1)
|
|
$
|
(1)
|
|
$
|
(1)
|
|
$
|
-
|
|
$
|
(2)
|
Individually
insignificant items
|
|
|
(1)
|
|
|
-
|
|
|
(1)
|
|
|
(2)
|
Other non-comparable
items
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired Rexam intangibles
|
|
|
(7)
|
|
|
(6)
|
|
|
(14)
|
|
|
(13)
|
Total beverage
packaging, North and Central America
|
|
|
(9)
|
|
|
(7)
|
|
|
(15)
|
|
|
(17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beverage packaging,
EMEA
|
|
|
|
|
|
|
|
|
|
|
|
|
Business consolidation
and other activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Facility closure costs
(1)
|
|
|
(1)
|
|
|
(3)
|
|
|
(3)
|
|
|
(5)
|
Individually
insignificant items
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1)
|
Other non-comparable
items
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired Rexam intangibles
|
|
|
(16)
|
|
|
(15)
|
|
|
(33)
|
|
|
(31)
|
Total beverage
packaging, EMEA
|
|
|
(17)
|
|
|
(18)
|
|
|
(36)
|
|
|
(37)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beverage packaging,
South America
|
|
|
|
|
|
|
|
|
|
|
|
|
Business consolidation
and other activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazilian indirect
taxes (2)
|
|
|
22
|
|
|
-
|
|
|
22
|
|
|
-
|
Individually
insignificant items
|
|
|
(1)
|
|
|
(3)
|
|
|
(2)
|
|
|
(4)
|
Other non-comparable
items
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired Rexam intangibles
|
|
|
(14)
|
|
|
(14)
|
|
|
(28)
|
|
|
(28)
|
Total beverage
packaging, South America
|
|
|
7
|
|
|
(17)
|
|
|
(8)
|
|
|
(32)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Business consolidation
and other activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension
settlements
|
|
|
-
|
|
|
(97)
|
|
|
-
|
|
|
(97)
|
Rexam acquisition
related compensation arrangements
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(6)
|
Goodwill impairment
charges in beverage packaging, other segment
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(62)
|
Reversal of certain
provisions in beverage packaging, other segment
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
11
|
Loss from sale of and
subsequent adjustment to selling price of steel food and steel
aerosol business
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(15)
|
Loss on sale of China
business and related costs
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(23)
|
Impairment of equity
method investment in South Korea (3)
|
|
|
(5)
|
|
|
-
|
|
|
(5)
|
|
|
-
|
Individually
insignificant items
|
|
|
(1)
|
|
|
(8)
|
|
|
(6)
|
|
|
(21)
|
Other non-comparable
items
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of equity method
affiliate non-comparable costs, net of tax (4)
|
|
|
-
|
|
|
-
|
|
|
(6)
|
|
|
(30)
|
Noncontrolling
interest's share of non-comparable costs (income), net of
tax
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1)
|
Amortization of
acquired Rexam intangibles
|
|
|
(1)
|
|
|
(2)
|
|
|
(1)
|
|
|
(2)
|
Debt extinguishment
and refinance costs
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(40)
|
Total other
|
|
|
(7)
|
|
|
(107)
|
|
|
(18)
|
|
|
(286)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total business
consolidation and other activities
|
|
|
12
|
|
|
(112)
|
|
|
5
|
|
|
(227)
|
Total other
non-comparable items
|
|
|
(38)
|
|
|
(37)
|
|
|
(82)
|
|
|
(145)
|
Total non-comparable
items
|
|
|
(26)
|
|
|
(149)
|
|
|
(77)
|
|
|
(372)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of U.K. tax rate
change (5)
|
|
|
(57)
|
|
|
-
|
|
|
(57)
|
|
|
-
|
Discrete non-comparable
tax items
|
|
|
(1)
|
|
|
(9)
|
|
|
(1)
|
|
|
(9)
|
Tax effect on business
consolidation and other activities
|
|
|
(11)
|
|
|
27
|
|
|
(9)
|
|
|
44
|
Tax effect on other
non-comparable items
|
|
|
10
|
|
|
9
|
|
|
19
|
|
|
36
|
Total non-comparable
tax items
|
|
|
(59)
|
|
|
27
|
|
|
(48)
|
|
|
71
|
Total
non-comparable items, net of tax
|
|
$
|
(85)
|
|
$
|
(122)
|
|
$
|
(125)
|
|
$
|
(301)
|
|
|
(1)
|
The company recorded
charges and revisions to previous estimates for the costs of
employee severance and benefits and facility shutdown costs related
to plant closures and restructuring activities.
|
|
|
(2)
|
Due to a favorable
ruling by the Brazilian Supreme Court in June 2021 eliminating ICMS
"tax on tax", the company recorded a gain associated with prior
year tax credits.
|
|
|
(3)
|
In June 2021, Ball
entered into an agreement to sell its minority owned equity method
investment in operations in South Korea and has recognized an
impairment of its investment as a result. The sale is anticipated
to close in the third quarter of 2021.
|
|
|
(4)
|
In the first quarter
of 2021, the company recorded its share of equity method
non-comparable items associated with the company's minority-owned
South Korea investment. In 2020, the company recorded its share of
equity method non-comparable costs, principally related to the
provision of additional equity contributions and loans to Ball
Metalpack by its shareholders.
|
|
|
(5)
|
In the second quarter
of 2021, the company revalued its U.K. deferred tax balances as a
result of an increase in the U.K. tax rate effective beginning
April 2023.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/ball-reports-strong-second-quarter-2021-results-301349036.html
SOURCE Ball Corporation