Ball beverage can shipments up 5.7%
Ball Corporation announced its Q3 2022 results, showing that global beverage can shipments were up 5.7%.
The company reported net earnings of $392million, on sales of $3.95billion, compared to net earnings of $179million on sales of $3.55billion in 2021.
Ball also reported net earnings attributable of $664 million, compared to $581 million in 2021, in the first nine months of 2022.
Daniel W. Fisher, president and CEO, said: “Our year-to-date comparable net earnings reflect resilient global demand for our sustainable aluminium beverage and personal care packaging solutions, up 3.2 percent and 11.2 percent, respectively, and solid aerospace segment performance, offset by inflation and unfavourable 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 $150million 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, maximise cash and EVA generation, and improve our financial performance in 2023 and beyond.
Beverage Packaging, North and Central America
Beverage packaging, North and Central America, segment comparable operating earnings for the third quarter 2022 were $205 million on sales of $1.80 billion compared to $186 million on sales of $1.52 billion during the same period in 2021.
Third quarter segment comparable operating earnings improved year-over-year due to higher volume offset by the impact of higher manufacturing and inflationary costs and unfavourable customer mix.
In response to lower than expected near-term demand and to optimise low-cost production across our North American manufacturing footprint, during the quarter the company announced permanently ceasing production at the company’s Phoenix, Arizona, and St. Paul, Minnesota, facilities, in the fourth quarter of 2022, and the first quarter of 2023, respectively, resulting in approximately $65million of fixed cost savings largely in 2023 and beyond.
Beverage Packaging, EMEA
Beverage packaging, EMEA, segment comparable operating earnings for third quarter 2022 were $82 million on sales of $1.03 billion compared to $125 million on sales of $937 million during the same period in 2021.
Year-over-year sales reflect higher shipments and the contractual pass through of higher aluminium costs offset by unfavourable foreign exchange translation and the sale of the Russian operations during the third quarter of 2022.
Given strong regional demand, the construction of new beverage can manufacturing facilities in the UK and Czech Republic remain on track and will enable further growth for sustainable aluminium beverage packaging across the region.
Projects are supported by long-term contracts with improved contractual terms and conditions. In advance of new production coming online in EMEA, imports from the company’s joint venture beverage can manufacturing facility in Saudi Arabia supplemented existing production capabilities across Europe during the quarter.
Beverage Packaging, South America
Beverage packaging, South America, segment comparable operating earnings for third quarter 2022 were $67 million on sales of $466 million compared to $74 million on sales of $462 million in 2021.
Demand trends across the company’s South American operations remain favourable as we enter the summer selling season and shipments during the third quarter were up 5.2%.
During the quarter, the company permanently ceased operations at its Santa Cruz, Brazil, beverage can manufacturing facility to further optimise low-cost production across our broad Brazilian manufacturing footprint.
This action will generate approximately $10 million of fixed cost savings and aid supply/demand balance across Brazil.