Ball reports net earnings of $117 million in Q1 2019

Ball Corporation reported Q1 2019 net earnings attributable to the corporation of $117 million on sales of $2.8 billion, from $125 million on sales of $2.8 billion in the same period last year. Comparable net earnings for Q1 2019 were $167 million, compared to $180 million in Q1 2018.

John A. Hayes, chairman, president and chief executive officer said: "Growth trends in our packaging and aerospace businesses continue to gain momentum. During the quarter, higher than expected global can demand driven by customers' shifting mix and new product launches to aluminium packaging helped drive stronger revenue growth. In North America, higher costs related to surplus U.S. aluminium scrap and higher than anticipated plant start-up costs affected first quarter results. We anticipate that these near-term cost pressures will moderate in the second half when new lines complete learning curves and more favourable contractual terms become effective, as well as in 2020 and beyond."

"Beverage can growth appears to be accelerating to levels that are stronger and more sustainable than in the past 25 plus years. We welcome the opportunity to support growth for infinitely recyclable aluminium packaging from 11 new beverage can lines and two new extruded aluminium aerosol lines installed across our global plant network since the beginning of 2018. In aerospace, new program awards for Ball's space hardware and capabilities will drive additional infrastructure investment and hiring to support multiple years of growth."

Scott C. Morrison, senior vice president and chief financial officer said: "The company's financial position is strong, our debt portfolio is well positioned with low, fixed interest rates and our recently amended and extended credit facility provides ample financial flexibility to invest in disciplined growth and return value to shareholders. Given the strength of our cash flow, leverage at optimal levels, last week's dividend increase and our existing repurchase authorization, the company plans to return in excess of $1 billion to shareholders in 2019 and beyond."

Ball Corporation continues to drive toward 2019 goals of $2 billion in comparable EBITDA, in excess of $1 billion in free cash flow.

"Our focus on commercializing sustainable aluminium packaging solutions across our customers' product categories and leveraging our aerospace capabilities with relevant government customers is translating into additional growth. We will continue to navigate short-term start-up inefficiencies and cost inflation to position Ball for the best long-term outcome in advance of contract renewals, Hayes said.