Ball Corporation yields higher net earnings of $392 million for 3Q2022, attributable to $3.95 billion of sales

On Thursday, November 3, Ball Corporation announced its third quarter and year-to-date results ended September 30. Ball Corporation is the world’s leading sustainable aluminium packaging provider for beverage, personal care and household products. In Q3, the company generated net earnings of $392 million attributable to the corporation or diluted earnings per share of $1.24, backed by $3.95 billion of sales, compared to $179 million net earnings on $3.55 billion of sales during the same period last year. As per the report, the company recorded this gain on the Russian business disposal during 3Q2022.

In the nine-month period, Ball yielded net earnings of $664 million or $2.07 per diluted share in comparison with $581 million or $1.75 per diluted share last year.  This year from January to September, sales totalled $11.80 billion versus $10.14 billion during the corresponding period of the last year.

Ball's third quarter and year-to-date 2022 comparable diluted earnings per share were 75 cents and $2.34, respectively, versus third quarter and year-to-date 2021 comparable diluted earnings per share of 94 cents and $2.52, respectively. 

"Our year-to-date comparable net earnings reflect resilient global demand for our sustainable aluminum beverage and personal care packaging solutions, up 3.2 percent and 11.2 percent, respectively, and solid aerospace segment performance, offset by inflation and unfavorable foreign exchange translation headwinds. During the quarter, we proactively prepared the business for continued macroeconomic volatility by executing a comprehensive fixed and variable cost-out plan. In 2023, the cost-out plan benefits of at least $150 million will more than offset the loss of operating earnings from the recently divested Russian beverage can business and will be complemented by net contractual inflationary cost pass through across all of our packaging businesses throughout 2023 and beyond. Our recent actions will reinforce Ball's durable growth characteristics, significantly improve our cost structure, maximize cash and EVA generation, and improve our financial performance in 2023 and beyond," said Daniel W. Fisher, president and CEO.

From beverage packaging unit in North & Central America, comparable operating earnings for 3Q2022 were $205 million on sales of $1.80 billion, up from $186 million on sales $1.52 billion a year ago.

From beverage packaging unit in South America, segment comparable operating earnings for Q3 2022 were $67 million on sales of $466 billion compared to $74 million on sales of $462 billion in Q3 2021. In total nine months, comparable segment operating earnings were $197 million on sales of $1.49 billion versus $245 million on sales of $1.40 billion during the same period last year.

For outlook, Fisher said: "We are focused on cost, cash and capital management. The successful completion of the Russian business sale allows us to incrementally de-leverage and focus regional resources on improving operational performance. We are controlling the things we can control in today's global economic and geopolitical environment. Demand continues to be quite resilient and supports the durability of our earnings and cash generation. We remain well-positioned for growth and returning value to shareholders."

He added, "We continue to actively manage our businesses through the lens of Drive for 10 and EVA to execute cost-out initiatives, ensure tight supply/demand balance across our global plant network and benefit from contractual inflationary cost recovery to achieve our long-term diluted earnings per share growth goal over time, generate cash and return value to shareholders. Our aluminum product portfolio and aerospace technologies and offerings remain resilient and bolster our prospects for improved sustainable performance in 2023 and the years ahead."