Ball posts improved results despite Euro profit drop

The US packaging and aerospace technologies specialist reported a 1% increase in pre-tax profits in the three months to 27 September, despite a 2% drop in sales.

Chairman, president and chief executive David Hoover credited to an “excellent operating performance and cost savings from rationalisation activities”.

He said: “Despite global economic uncertainty, we anticipate fourth quarter results from continuing operations will be well above those of the same period last year.”

Ball’s European metal drinks packaging business is the second largest segment in terms of sales, which fell by 7% to $478m in the quarter. Earnings before interest and taxes fell by 10% to $69m.

The firm said European volumes had remained flat but the operation had suffered from changes in the product mix and a lower euro-dollar exchange rate than in 2008.

The quarterly results include $9.1 in costs from the purchase of four can and can-end plants from drinks firm AB-InBev that was completed at the beginning of the month. The integration of the four plants is progressing well, Ball said in a trading statement.

Ball was also hit by the costs of closing two plastic manufacturing plants.

BALL CORPORATION Q3 RESULTS
(figures in $millions)

Net sales $1, 609.7 (1,679.9 in 2008)
Earnings before interest and taxes $179.5 ($177.8)
Net earnings $103.7 ($101.9)

Ball Packaging Europe

Sales $478 ($511)
EBIT $68.8 ($78.7)

Click here for today’s headlines from across the packaging industry

Popular Articles