Metal and plastic packaging supplier Ball Corp. (BLL) reported Thursday a profit for the fourth quarter that climbed from last year, boosted by sales growth as well as lower business consolidation costs. Adjusted earnings per share for the quarter surged and significantly topped analysts' expectations. The company also expects full-year 2010 earnings to be above those reported for fiscal 2009.
In a statement, chairman and chief executive officer, David Hoover said, "Volume momentum improved sequentially in the fourth quarter in our metal beverage and metal food and household products businesses due largely to increased customer promotional activity, and the four U.S. metal beverage packaging plants acquired in October were accretive to earnings in the quarter."
Fourth Quarter Results
The Broomfield, Colorado-based company reported net earnings of $81.4 million or $0.85 per share for the fourth quarter, sharply higher than $33.8 million or $0.36 per share in the prior-year quarter.
The results for the year-ago quarter included $19.6 million or $0.06 per share of business consolidation costs.
Excluding items, adjusted net earnings for the quarter rose to $80.3 million or $0.84 per share from $53.4 million or $0.56 per share in the year-ago quarter. On average, 12 analysts polled by Thomson Reuters estimated earnings of $0.71 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter increased to $1.86 billion from $1.73 billion in the same quarter last year, and topped eight Wall Street analysts' consensus estimate of $1.85 billion by a whisker.
Segmental Details
Metal beverage packaging Americas and Asia operations' comparable segment operating earnings were $72.1 million on sales of $812.9 million, higher than $55.7 million on sales of $684.7 million reported in the same quarter last year.
Metal beverage packaging Europe segment reported operating earnings of $50.3 million on sales of $427.1 million, compared to $29.0 million on sales of $380.8 million in the year-ago quarter.
Metal food and household products packaging Americas segment reported operating earnings of $18.3 million on sales of $326.4 million, compared to $23.2 million on sales of $309.4 million in the prior-year quarter.
Plastic packaging Americas segment reported operating earnings of $1.1 million on sales of $136.8 million, compared to breakeven on sales of $161.4 million in the fourth quarter of 2008. Aerospace and technologies segment reported operating earnings of $15.8 million on sales of $161.2 million in the quarter, compared to $20.2 million on sales of $196.5 million last year.
Other Metrics
Total costs and expenses for the fourth quarter rose to $1.72 billion from $1.65 billion in the year-ago quarter. Expenses include selling, general and administrative expenses of $88.7 million, higher than $60.6 million in the prior-year quarter, and business consolidation gains of $2.3 million, compared to business consolidation costs $31.5 million in the same quarter last year.
Total tax provisions for the quarter were $34 million, compared to $19 million in the year-ago quarter.
The company ended the fourth quarter with cash of $210.6 million, compared to $127.4 million at end of the prior-year quarter.
Full-Year Highlights
For fiscal 2009, the company reported net earnings of $387.9 million or $4.08 per share, up from $319.5 million or $3.29 per share in the previous year.
Excluding special items, adjusted net earnings increased to $385.1 million or $4.05 per share from $350.0 million or $3.61 per share in the prior year. Analysts expected the company to report earnings of $3.92 per share for fiscal 2009.
Net sales for the full-year 2009 declined to $7.35 billion from $7.56 billion reported in fiscal 2008. The Street was looking for full-year revenues of $7.32 billion.
Looking Ahead........
"As we continue the smooth integration of the plants acquired in 2009, it is providing opportunities to improve our processes and share best practices. We remain focused on continuing to build momentum in our company," president and chief operating officer, John Hayes added.
The company expects full-year 2010 earnings to be above those reported for fiscal 2009 of $4.05 per share. Analysts expect the company to report earnings of $4.39 per share for fiscal 2010.
Stock Quote
BLL closed Wednesday's regular trading session at $50.45, down $0.11 on a volume of 1.68 million shares, higher than the three-month average volume of 0.81 million shares. In the past 52-week period, the stock has been trading in a range of $36.50 to $52.55.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.