Ball eyes summer improvement after Q1 profits fall

The US metal and plastic packaging and aerospace firm said the seasonally slow first quarter yielded sales of $1.59bn (£1.08bn), down 9% on the first three months of 2008.

Pre-tax profit for the quarter fell by 17% to $126m.

Ball chairman, president and chief executive officer R David Hoover said significant inventory holding losses had also hit the figures.

“We anticipate volume and margin trends will improve to more historical levels as we head into the traditionally busier summer season,” he said.

Results for the European metal packaging segment were negatively impacted by higher priced metal and inventories and a stronger US dollar than in 2008.

The European division recorded a 36% drop in pre-tax profits to $31m, on sales of $344m, 15% lower than in the first quarter of 2008.

Chief operating officer John A. Hayes said the company was “aggressively cutting costs” which would contribute to the business performance as the year progresses.

“Margins in our global beverage can business are expected to improve as we work through high priced metal in inventories and customers begin summer promotional activity,” he said.

· Ball has said it is stopping operations at two PET packaging facilities in the US. The Watertown, Wisconsin, facility will close on 7 June followed by Baldwinsville in New York state on 7 July.

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