Ball Corporation reported its first quarter 2024 results that showed global beverage can shipments had increased by 3.7%.

On a U.S. GAAP basis, the company reported, first quarter 2024 net earnings attributable to the corporation of $3.69 billion (including a net after-tax gain of $3.47 billion, or $10.93 per diluted share for the aerospace business sale, business consolidation and other non-comparable items) or total diluted earnings per share of $11.61, on sales of $2.87 billion.

This was compared to $177 million net earnings attributable to the corporation, or total diluted earnings per share of 56 cents (including a net after-tax loss of $40 million, or 13 cents per diluted share for business consolidation and other non-comparable items) on sales of $2.98 billion in 2023. 

Ball’s first quarter 2024 comparable net earnings were $217 million, or 68 cents per diluted share compared to $217 million, or 69 cents per diluted share in 2023.

Daniel W. Fisher, chairman and chief executive officer, said: “We delivered strong first quarter results. Following the successful sale of the aerospace business in mid-February, we have executed on 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. 

“We continue to complement our purpose by driving innovation and sustainability on a global scale, unlocking additional manufacturing efficiencies and activating an operating model to enable high-quality, long-term shareholder value creation.”

Details of reportable segment comparable operating earnings, business consolidation and other activities, business segment descriptions and other non-comparable items can be found in the notes to the unaudited condensed consolidated financial statements that accompany this news release. References to volume data represent units shipped.

Beverage Packaging, North and Central America

Beverage packaging, North and Central America, segment comparable operating earnings for first quarter 2024 were $192 million on sales of $1.40 billion compared to $183 million on sales of $1.50 billion during the same period in 2023. First quarter sales reflect lower shipments and the contractual pass through of lower aluminium costs favourably offset by the annual pass-through of inflationary costs.

First quarter segment comparable operating earnings increased year-over-year largely due to the annual pass-through of inflationary costs net of current year inflation, benefits from fixed and variable cost out actions and improved operational performance despite year-over-year headwinds driven largely by our customer exposure to a U.S. mass beer brand disruption and a benefit associated with a U.S. virtual power agreement termination in the first quarter of 2023.

Aluminium beverage cans continue to outperform other substrates. We remain dedicated to enabling the greater use of low-carbon, best-value innovative aluminium packaging solutions across our customer mix over the long term. 

Quarterly sequential volume improvement returned earlier than anticipated in our North and Central American business due to the incremental pull forward of contracted volume by certain customers in advance of the summer selling season and following customers’ notable destocking in the fourth quarter of 2023. Segment volumes decreased 2.4 percent year-over-year in the first quarter of 2024 versus a decrease of 3.7 percent in the fourth quarter of 2023. 

Going forward, growth supported by business development efforts and innovation across diverse beverage categories, additional benefits from fixed and variable cost-out initiatives and improved operational efficiencies are expected to improve results throughout 2024 and beyond. 

Beverage Packaging, EMEA

Beverage packaging, EMEA, segment comparable operating earnings for first quarter 2024 were $85 million on sales of $810 million compared to $73 million on sales of $834 million during the same period in 2023. First quarter sales reflect higher year-over-year shipments offset by the contractual pass through of lower aluminium costs.

First quarter comparable operating earnings reflect higher volumes, favourable cost management and improved operational efficiencies. Packaging mix shift to aluminium cans supported by ongoing packaging legislation in certain countries continues to be a driver of aluminium beverage packaging growth despite recent inflation-induced consumer demand pressure. Year-over-year first quarter segment volumes increased 1.1 percent reflecting growth in the United Kingdom, Nordics and Turkey offset by lower than anticipated demand in Egypt. Going forward, sustainability tailwinds and seasonal trends are anticipated to improve demand throughout the year.

Beverage Packaging, South America

Beverage packaging, South America, segment comparable operating earnings for first quarter 2024 were $55 million on sales of $482 million compared to $50 million on sales of $450 million during the same period in 2023. Year-over-year sales reflect higher volumes partially offset by the contractual pass through of lower aluminium costs. First quarter segment comparable operating earnings increased year-over-year driven by higher segment volumes and favourable customer mix in Brazil offset by the impact of product mix and continuing disruptive economic and operating conditions in Argentina.

Demand trends across the company’s South American operations improved significantly year-over-year. Segment volumes increased 26.3 percent in the first quarter driven by customer mix and substrate mix shift to aluminium cans versus other substrates, particularly in Brazil. In Argentina, the company continues to serve customers and assess risks given the dynamic economic and policy environment.