Ball Corp. (BLL) Misses Q3 EPS by 2c, Revenues Miss

Ball Corp. (NYSE: BLL) reported Q3 EPS of $0.70, $0.02 worse than the analyst estimate of $0.72. Revenue for the quarter came in at $2.53 billion versus the consensus estimate of $3.04 billion.

Highlights

• Third quarter U.S. GAAP earnings per diluted share of 27 cents vs. 17 cents in 2018
• Third quarter comparable earnings per diluted share of 70 cents vs. 56 cents in 2018
• Global beverage can volumes up 4 percent in third quarter and up 6 percent year-to-date; tight inventory hampered growth
• Aerospace contracted backlog increased to $2.2 billion
• Launched new Ball aluminum cup; constructing dedicated cup manufacturing facility in Rome, Georgia
• Sale of Chinese beverage can manufacturing assets completed
• Sale of Argentine steel aerosol manufacturing assets completed in October
• Disciplined capital allocation continued to be directed to aluminum packaging and aerospace growth projects as well as consistent share buybacks and dividends

"Positive momentum in our aluminum beverage packaging and aerospace businesses continues. During the quarter, our global beverage volumes increased 4 percent and our aerospace contracted backlog increased 9 percent. With global customer and consumer demand for aluminum packaging solutions continuing to outpace existing supply, we are focused on improving operational efficiencies and ramping up previously announced line additions, speed-ups and greenfield plant expansions to add at least 5 billion units of capacity over the next 12-18 months. In addition, the successful launch of our new lightweight aluminum cup has accelerated our plans to construct a dedicated aluminum cup manufacturing facility in Rome, Georgia," said John A. Hayes, chairman, president and chief executive officer.

"To complement our existing plant network, we are excited to announce the construction of a new beverage can manufacturing facility in Glendale, Arizona, to support the new can filling facility for a major customer as well as third party business. Initially a high-speed two line facility, we expect this new plant to come on line in early 2021 and will have the capability to be further scaled as market growth dictates. We are also actively exploring a new aluminum beverage can facility in the U.S. Northeast, and continue to explore other growth opportunities around the world, which we will discuss further in the near future."

"Long-term growth prospects for our sustainable aluminum packaging solutions and aerospace technologies continue to remain strong, and we are excited to support this growth with disciplined, multi-year investments in facilities, talent, training and systems infrastructure to improve customers' access to our packaging products and to broaden our mission-partner position in aerospace. Leveraging our innovative product portfolio across the most optimal customer base in both packaging and aerospace will expand shareholder returns for years to come."

Outlook

"As of today, we have returned over $900 million to shareholders in 2019 through net share repurchases and dividends. Our strong financial position and cash flow can support our multi-year plans to accelerate disciplined growth investments and consistent return of value to shareholders," said Scott C. Morrison, senior vice president and chief financial officer.

"The opportunities present in our businesses today are significant. Growth is exciting and requires a strong focus on attention to detail. We are constantly striving to align our employees, customers' and suppliers' expectations to ensure the appropriate cadence of capital investment across the entire supply chain. Our strong balance sheet, disciplined approach to capital allocation, recession-resistant sustainable packaging portfolio, leading aerospace technologies and our behave-like-an-owner approach provide the strong foundation for long-term shareholder value creation. We look forward to driving our business to meet or exceed our long-term diluted earnings per share and EVA dollar growth goals," Hayes said.

For earnings history and earnings-related data on Ball Corp. (BLL) click here.

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