Ball profit rises 11% despite falling sales

The Colorado metal and plastic packaging firm recorded sales of $7.4bn (£4.6bn) last year, down 3% on 2008. But earnings before interest and profit rose by 11% to $654.6m.

Ball said improved volumes and the contribution of the newly acquired metal packaging plants had boosted results in the fourth quarter of the year.

President and chief operating officer John Hayes said prior price-cutting actions and better management of prices in relation to costs had contributed to the results.

“As we continue the integration of the plants, it is providing opportunities to improve our processes and share best practices. We remain focused on continuing to build momentum in our company,” he said.

Sales dropped in all business segments except the metal food and household division in the Americas.

The European drinks can division reported a 7% drop in both sales and earnings for the year. However, Ball said in today’s trading statement that results had improved in the last quarter due to cost containment and a favourable euro-dollar exchange rate.

“The company continues to manage its European business to efficiently balance regional supply with customer demand,” Ball said.

BALL CORPORATION 2009 RESULTS

Sales $7.35bn ($7.56bn in 2008)
Earnings before interest and tax $654.6m ($590.5m)
Net earnings $388.4m ($319.9m)

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