Ball Corporation marks spiked GAAP profit in Q1 after selling aerospace business to BAE Systems

Ball Corporation has strategically sold its aerospace business to BAE Systems, resulting in a pre-tax gain of $4.7 billion. This move has enabled Ball to pay down $2.8 billion in debt and initiate a $1.3 billion share repurchase program. The sale propelled the company’s shares to a 21-month high despite mixed Q1 results.

The financial manoeuvre allowed Ball Corporation to report a combined profit of $0.68 per share, slightly down from the previous year's $0.69, yet exceeding expectations by 14 cents. GAAP profit for Q1, bolstered by the aerospace sale, was $11.70 per share. However, total sales fell by 3.7% to $2.87 billion, missing estimates by $270 million.

CEO Daniel Fisher stated: “Following the successful sale of the aerospace business in mid-February, we have executed our plans to immediately deleverage, initiate a large multi-year share repurchase program, and position the company to enable our purpose of advancing the greater use of sustainable aluminium packaging.”

In the beverage packaging segment, sales in North and Central America were $1.4 billion, down 7% year-over-year due to lower shipments and decreased aluminium costs. In the EMEA region, sales dropped by 2.9% to $810 million, while South America saw a 7% increase in sales.