Ball Corporation has reported its third quarter results for 2024.

On a U.S. GAAP basis, the company reported, third quarter 2024 net earnings attributable to the corporation of $197 million (including a net after-tax loss of $81 million, or 26 cents per diluted share for business consolidation and other non-comparable items) or total diluted earnings per share of 65 cents, on sales of $3.08 billion, compared to $203 million net earnings attributable to the corporation, or total diluted earnings per share of 64 cents (including a net after-tax loss of $60 million, or 19 cents per diluted share for business consolidation and other non-comparable items) on sales of $3.11 billion in 2023. 

Results for the first nine months of 2024 were net earnings attributable to the corporation of $4.04 billion (including a net after-tax gain of $3.31 billion for the aerospace business sale, business consolidation and other non-comparable items), or total diluted earnings per share of $12.96, on sales of $8.92 billion compared to $553 million, or total diluted earnings per share of $1.74, on sales of $9.16 billion for the first nine months of 2023.

Ball’s third quarter and year-to-date 2024 comparable earnings per diluted share were 91 cents and $2.33, respectively, versus third quarter and year-to-date 2023 comparable earnings per diluted share of 83 cents and $2.13, respectively.

Daniel W. Fisher, chairman and chief executive officer, said: “We delivered strong third quarter results and have returned $1.25 billion to shareholders in the first nine months of 2024. Leveraging our strong financial position and leaner operating model, the company remains uniquely positioned to enable our purpose of advancing the greater use of sustainable aluminium packaging, despite the current end consumer environment in certain geographies. We continue to complement our purpose by driving innovation and sustainability on a global scale, unlocking additional manufacturing efficiencies and enabling consistent delivery of 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 third quarter 2024 were $203 million on sales of $1.46 billion compared to $196 million on sales of $1.54 billion during the same period in 2023. The decrease in third quarter sales reflects lower year-over-year volumes and price/mix. 

Third quarter segment comparable operating earnings increased year-over-year primarily due to price/mix partially offset by lower volumes of 3.1 percent. Aluminium beverage cans continue to outperform other substrates despite continued economic pressure on the end consumer. Going forward, benefits from fixed and variable cost-out initiatives and improved operational efficiencies are expected to improve results throughout the remainder of 2024 and beyond.

Beverage Packaging, EMEA

Beverage packaging, EMEA, segment comparable operating earnings for third quarter 2024 were $128 million on sales of $950 million compared to $103 million on sales of $902 million during the same period in 2023. Third quarter sales primarily reflect higher volumes.

Third quarter comparable operating earnings reflect 6.7 percent higher volumes. Packaging mix shift to aluminium cans supported by ongoing packaging legislation in certain countries continues to be a driver of aluminium beverage packaging growth. Going forward, sustainability tailwinds and improved operational efficiencies are expected to improve results.

Beverage Packaging, South America

Beverage packaging, South America, segment comparable operating earnings for third quarter 2024 were $78 million on sales of $484 million compared to $61 million on sales of $489 million during the same period in 2023. Third quarter sales reflect lower volumes partially offset by price/mix.

Third quarter segment comparable operating earnings increased year-over-year driven by favourable price/mix partially offset by 10.0 percent lower volumes during the quarter. Volumes were driven by the ongoing impact of disruptive economic and operating conditions in Argentina and demand outstripping supply in Brazil late in the quarter. In Argentina, the company continues to serve customers and assess risks given the dynamic economic and policy environment. Across South America multi-year customer initiatives to increase the use of sustainable aluminium packaging are expected to continue.

Non-reportable

Non-reportable is comprised of undistributed corporate expenses, net of corporate interest income, the results of the company’s global aluminium aerosol business, beverage can manufacturing facilities in India, Saudi Arabia and Myanmar and the company’s aluminium cup business.

Third quarter 2024 improved results reflect higher comparable operating earnings for the aluminium packaging businesses partially offset by increased year-over-year undistributed corporate expenses. The company’s global aluminium aerosol, aluminium bottle and cups customers continue to collaborate with Ball to activate growth opportunities and tailored offerings for personal and home care brands, refill and reuse packaging for water, other beverages and venue specific needs to advance the circular economy.

In late-October, the company completed the acquisition of Alucan Entec, S.A., a European impact extruded aluminium packaging business, for the purchase price of €82 million (or $88 million using an exchange rate as of the date of close), subject to customary closing adjustments, which reflects an attractive EBITDA multiple of approximately 7.4x. The acquisition complements Ball’s existing global extruded aluminium aerosol and bottle business with the addition of two manufacturing facilities near Lummen, Belgium, and Llinars del Vallés, Spain, along with associated contracts and other related assets.

Outlook

“Our company is performing well and on track to deliver or exceed against our stated comparable earnings growth goal and on target to return in excess of $1.6 billion to shareholders in 2024. By consistently executing on our plans to drive continuous improvement and operational excellence, our resulting strong free cash flow will allow us to return significant value to shareholders while also prudently investing in our business over the years to come,” said Howard Yu, executive vice president and chief financial officer.

“Our global team is focused on executing our enterprise-wide strategy with purpose and pace to advance aluminium packaging and to consistently deliver high-quality results, products and returns. In 2024, we are positioned to achieve mid-single digit plus comparable diluted earnings per share growth, generate strong free cash flow and EVA while also returning significant value to shareholders through a combination of share repurchases and dividends. We will continue to leverage the strengths of our best-in-class footprint, product portfolio and operational talent. I want to thank our employees for their hard work to consistently deliver comparable diluted earnings per share growth greater than 10 percent per annum in 2025 and beyond,” Fisher said.