Highlights
- Third quarter
U.S. GAAP diluted earnings per share of$1.24 vs.54 cents in 2021; company recorded a gain on the Russian business disposal during third quarter of 2022 - Third quarter comparable diluted earnings per share of
75 cents vs.94 cents in 2021 - Completed sale of Russian business operations;
$530 million in cash proceeds used for debt reduction - Global beverage can shipments up 5.7% in third quarter, excluding
Russia - Strong aerospace backlog and contracts won-not-booked of
$3.0 billion and$4.6 billion , respectively - Developed and executed plan to enable at least
$150 million of combined fixed and variable cost savings in 2023 - Beyond 2022, positioned business to achieve long-term diluted earnings per share growth goal of 10 to 15 percent, inclusive of divested Russian operating earnings headwind
Ball's third quarter and year-to-date 2022 comparable diluted earnings per share were
Details of 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 except where specifically referenced otherwise. Beginning in the fourth quarter of 2022, year-over-year global and EMEA segment volume data will exclude the impact of the Russian beverage can business sale completed in third quarter of 2022.
"Our year-to-date comparable net earnings reflect resilient global demand for our sustainable aluminum beverage and personal care packaging solutions, up 3.2 percent and 11.2 percent, respectively, and solid aerospace segment performance, offset by inflation and unfavorable 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
Beverage packaging, North and
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 unfavorable customer mix. Segment volumes increased 2.5 percent in the third quarter and aluminum beverage packaging continues to be more resilient than other substrates. Despite this favorable trend, customer demand continues to be lower than expectations driven by higher year-over-year retail prices impacting consumer demand, particularly in the
In response to lower than expected near-term demand and to optimize low-cost production across our North American manufacturing footprint, during the quarter the company announced permanently ceasing production at the company's
Beverage packaging, EMEA, segment comparable operating earnings for third quarter 2022 were
Third quarter segment comparable operating earnings decreased versus the same period in 2021 and reflect 5.5 percent segment volume growth being more than offset by unfavorable currency translation, the impact of higher inflation, energy costs and supply chain disruptions across the region and unfavorable year-over-year performance in the Russian business ahead of the sale. Packaging mix shift to aluminum cans supported by ongoing packaging legislation in certain countries continues to be a driver of aluminum beverage packaging growth. Given strong regional demand, the construction of new beverage can manufacturing facilities in the
Beverage packaging,
Demand trends across the company's South American operations remain favorable as we enter the summer selling season and shipments during the third quarter were up 5.2 percent. During the quarter, the company permanently ceased operations at its
Aerospace
Aerospace segment comparable operating earnings for third quarter 2022 were
Third quarter segment comparable operating earnings reflect solid execution on existing and new programs offset by supply chain inefficiencies. The segment continues to leverage its talent, manufacturing and test capabilities, engineering, and support workspace to secure additional defense, climate change and Earth-monitoring contracts to provide mission-critical programs and technologies to
In mid-November, the joint NASA and NOAA Earth observation JPSS-2 satellite with the Ball-built OMPS (Ozone Mapping Profiler Suite) is scheduled to launch from Vandenberg Space Force Base. Ball's contributions to the JPSS series of satellites reinforces our commitment to delivering extreme weather data, weather forecasts and ozone measurements to develop climate models and monitor global ozone and atmospheric temperature. Because of its wide swath, the satellite will observe every spot on Earth at least twice daily.
Non-reportable
In addition to undistributed corporate expenses, the results for the company's global aluminum aerosol business, beverage can manufacturing facilities in
Third quarter 2022 results reflect higher year-over-year undistributed corporate expenses, higher aluminum cup demand in food service channels, 12.2 percent volume growth for extruded aluminum bottles and aerosol containers and 46.7 percent volume growth in the other non-reportable beverage can manufacturing facilities where certain production is being exported to support EMEA segment demand prior to new capital projects coming online in 2022. During the quarter, the company's global aluminum aerosol customers continued to pursue next generation lightweight sustainable personal care packaging solutions and the company entered an alliance with Boomerang Water to expand usage of refillable aluminum bottled water at closed-loop venues.
Outlook
"We are focused on cost, cash and capital management. The successful completion of the Russian business sale allows us to incrementally de-leverage and focus regional resources on improving operational performance. We are controlling the things we can control in today's global economic and geopolitical environment. Demand continues to be quite resilient and supports the durability of our earnings and cash generation. We remain well-positioned for growth and returning value to shareholders," said
"We continue to actively manage our businesses through the lens of Drive for 10 and EVA to execute cost-out initiatives, ensure tight supply/demand balance across our global plant network and benefit from contractual inflationary cost recovery to achieve our long-term diluted earnings per share growth goal over time, generate cash and return value to shareholders. Our aluminum product portfolio and aerospace technologies and offerings remain resilient and bolster our prospects for improved sustainable performance in 2023 and the years ahead," Fisher said.
Abo
ut
Conference Call Details
https://edge.media-server.com/mmc/p/8sqwbnpk
For those unable to listen to the live call, a taped replay will be available from
Forward-Looking Statements
This release contains "forward-looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates," "believes," and similar expressions typically identify forward-looking statements, which are generally any statements other than statements of historical fact. Such statements are based on current expectations or views of the future and are subject to risks and uncertainties, which could cause actual results or events to differ materially from those expressed or implied. You should therefore not place undue reliance upon any forward-looking statements and they should be read in conjunction with, and qualified in their entirety by, the cautionary statements referenced below. Ball undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key factors, risks and uncertainties that could cause actual outcomes and results to be different are summarized in filings with the
Condensed Financial Statements (Third Quarter 2022) |
||||||||||||
|
||||||||||||
Unaudited Condensed Consolidated Statements of Earnings |
||||||||||||
|
||||||||||||
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
||||||
|
|
|
|
|
|
|
||||||
($ in millions, except per share amounts) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
3,951 |
|
$ |
3,553 |
|
$ |
11,801 |
|
$ |
10,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales (excluding depreciation and amortization) |
|
|
(3,275) |
|
|
(2,851) |
|
|
(9,736) |
|
|
(8,104) |
Depreciation and amortization |
|
|
(157) |
|
|
(175) |
|
|
(510) |
|
|
(515) |
Selling, general and administrative |
|
|
(159) |
|
|
(148) |
|
|
(506) |
|
|
(471) |
Business consolidation and other activities |
|
|
163 |
|
|
(141) |
|
|
(23) |
|
|
(136) |
|
|
|
(3,428) |
|
|
(3,315) |
|
|
(10,775) |
|
|
(9,226) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest and taxes |
|
|
523 |
|
|
238 |
|
|
1,026 |
|
|
911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(79) |
|
|
(68) |
|
|
(216) |
|
|
(201) |
Debt refinancing and other costs |
|
|
- |
|
|
(1) |
|
|
(2) |
|
|
(1) |
Total interest expense |
|
|
(79) |
|
|
(69) |
|
|
(218) |
|
|
(202) |
Earnings before taxes |
|
|
444 |
|
|
169 |
|
|
808 |
|
|
709 |
Tax (provision) benefit |
|
|
(38) |
|
|
2 |
|
|
(139) |
|
|
(146) |
Equity in results of affiliates, net of tax |
|
|
(12) |
|
|
8 |
|
|
7 |
|
|
18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
|
394 |
|
|
179 |
|
|
676 |
|
|
581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to noncontrolling interests, net of tax |
|
|
2 |
|
|
- |
|
|
12 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to |
|
$ |
392 |
|
$ |
179 |
|
$ |
664 |
|
$ |
581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.25 |
|
$ |
0.55 |
|
$ |
2.09 |
|
$ |
1.78 |
Diluted |
|
$ |
1.24 |
|
$ |
0.54 |
|
$ |
2.07 |
|
$ |
1.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (000s): |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
314,054 |
|
|
325,876 |
|
|
317,296 |
|
|
327,097 |
Diluted |
|
|
317,061 |
|
|
331,595 |
|
|
321,222 |
|
|
332,938 |
Condensed Financial Statements (Third Quarter 2022) |
||||||
|
||||||
Unaudited Condensed Consolidated Statements of Cash Flows |
||||||
|
||||||
|
|
|
Nine Months Ended |
|||
|
|
|
|
|||
($ in millions) |
|
2022 |
|
2021 |
||
|
|
|
|
|
|
|
Cash Flows from Operating Activities: |
|
|
|
|
|
|
Net earnings |
|
$ |
676 |
|
$ |
581 |
Depreciation and amortization |
|
|
510 |
|
|
515 |
Business consolidation and other activities |
|
|
23 |
|
|
136 |
Deferred tax provision (benefit) |
|
|
(23) |
|
|
34 |
Other, net |
|
|
(278) |
|
|
(142) |
Changes in working capital |
|
|
(1,132) |
|
|
(248) |
Cash provided by (used in) operating activities |
|
|
(224) |
|
|
876 |
Cash Flows from Investing Activities: |
|
|
|
|
|
|
Capital expenditures |
|
|
(1,262) |
|
|
(1,204) |
Business dispositions, net of cash sold |
|
|
748 |
|
|
111 |
Other, net |
|
|
62 |
|
|
(11) |
Cash provided by (used in) investing activities |
|
|
(452) |
|
|
(1,104) |
Cash Flows from Financing Activities: |
|
|
|
|
|
|
Changes in borrowings, net |
|
|
1,418 |
|
|
846 |
Net issuances (purchases) of common stock |
|
|
(592) |
|
|
(325) |
Dividends |
|
|
(191) |
|
|
(164) |
Other, net |
|
|
(12) |
|
|
(30) |
Cash provided by (used in) financing activities |
|
|
623 |
|
|
327 |
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash |
|
|
(30) |
|
|
(22) |
Change in cash, cash equivalents and restricted cash |
|
|
(83) |
|
|
77 |
Cash, cash equivalents and restricted cash - beginning of period |
|
|
579 |
|
|
1,381 |
Cash, cash equivalents and restricted cash - end of period |
|
$ |
496 |
|
$ |
1,458 |
Condensed Financial Statements (Third Quarter 2022) |
||||||
|
||||||
Unaudited Condensed Consolidated Balance Sheets |
||||||
|
||||||
|
|
|
||||
($ in millions) |
|
2022 |
|
2021 |
||
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
473 |
|
$ |
1,446 |
Receivables, net |
|
|
2,877 |
|
|
2,489 |
Inventories, net |
|
|
2,201 |
|
|
1,638 |
Other current assets |
|
|
261 |
|
|
344 |
Total current assets |
|
|
5,812 |
|
|
5,917 |
Property, plant and equipment, net |
|
|
6,738 |
|
|
6,170 |
|
|
|
4,119 |
|
|
4,407 |
Intangible assets, net |
|
|
1,410 |
|
|
1,732 |
Other assets |
|
|
1,974 |
|
|
1,906 |
|
|
|
|
|
|
|
Total assets |
|
$ |
20,053 |
|
$ |
20,132 |
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Short-term debt and current portion of long-term debt |
|
$ |
470 |
|
$ |
762 |
Payables and other accrued liabilities |
|
|
5,719 |
|
|
5,369 |
Total current liabilities |
|
|
6,189 |
|
|
6,131 |
Long-term debt |
|
|
8,363 |
|
|
7,755 |
Other long-term liabilities |
|
|
1,952 |
|
|
2,481 |
Equity |
|
|
3,549 |
|
|
3,765 |
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
20,053 |
|
$ |
20,132 |
Notes to the Condensed Financial Statements (Third Quarter 2022)
1. Business Segment Information
Ball's operations are organized and reviewed by management along its product lines and geographical areas and presented in the four reportable segments outlined below.
Beverage packaging, North and
Beverage packaging, EMEA
: Consists of operations in numerous countries throughout
Beverage packaging,
Aerospace : Consists of operations that manufacture and sell aerospace and other related products and provide services used in the defense, civil space and commercial space industries.
Other consists of a non-reportable operating segment (beverage packaging, other) that manufactures and sells aluminum beverage containers in
The company also has investments in operations in
As part of the company's process to continually evaluate the useful lives of its property, plant and equipment, the company utilized a third-party appraiser to assist in this evaluation, which was performed as a result of the company's experience with the duration over which the equipment and buildings of its aluminum packaging and aerospace businesses can be utilized. Effective
In the third quarter of 2022, the company completed the sale of its Russian aluminum beverage packaging business for total consideration of
In the first quarter of 2022, the company announced that it was pursuing the sale of its aluminum beverage packaging business located in
During the first quarter of 2022, Ball sold its remaining 49 percent owned equity method investment in
|
Three Months Ended |
|
|
Nine Months Ended |
|||||||
|
|
|
|
|
|||||||
($ in millions) |
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
|
|
|
|
|
|
|
|
|
Beverage packaging, North and |
$ |
1,800 |
|
$ |
1,519 |
|
$ |
5,184 |
|
$ |
4,339 |
Beverage packaging, EMEA (a) |
|
1,031 |
|
|
937 |
|
|
3,106 |
|
|
2,639 |
Beverage packaging, |
|
466 |
|
|
462 |
|
|
1,494 |
|
|
1,401 |
Aerospace |
|
477 |
|
|
498 |
|
|
1,471 |
|
|
1,381 |
Reportable segment sales |
|
3,774 |
|
|
3,416 |
|
|
11,255 |
|
|
9,760 |
Other |
|
177 |
|
|
137 |
|
|
546 |
|
|
377 |
Net sales |
$ |
3,951 |
|
$ |
3,553 |
|
$ |
11,801 |
|
$ |
10,137 |
|
|
|
|
|
|
|
|
|
|
|
|
Comparable operating earnings |
|
|
|
|
|
|
|
|
|
|
|
Beverage packaging, North and |
$ |
205 |
|
$ |
186 |
|
$ |
543 |
|
$ |
519 |
Beverage packaging, EMEA (a) |
|
82 |
|
|
125 |
|
|
311 |
|
|
349 |
Beverage packaging, |
|
67 |
|
|
74 |
|
|
197 |
|
|
245 |
Aerospace |
|
47 |
|
|
46 |
|
|
126 |
|
|
115 |
Reportable segment comparable operating earnings |
|
401 |
|
|
431 |
|
|
1,177 |
|
|
1,228 |
|
|
|
|
|
|
|
|
|
|
|
|
Other (b) |
|
(8) |
|
|
(14) |
|
|
(26) |
|
|
(67) |
Comparable operating earnings |
|
393 |
|
|
417 |
|
|
1,151 |
|
|
1,161 |
Reconciling items |
|
|
|
|
|
|
|
|
|
|
|
Business consolidation and other activities |
|
163 |
|
|
(141) |
|
|
(23) |
|
|
(136) |
Amortization of acquired Rexam intangibles |
|
(33) |
|
|
(38) |
|
|
(102) |
|
|
(114) |
Earnings before interest and taxes |
$ |
523 |
|
$ |
238 |
|
$ |
1,026 |
|
$ |
911 |
_________________________ |
|
(a) |
See the accompanying information below for results of the Russian aluminum beverage packaging business. |
(b) |
Includes undistributed corporate expenses, net, of |
For a summary of the results of the Russian aluminum packaging business and the non-Russian components of the beverage packaging, EMEA, segment, for the three and nine months ended
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
($ in millions) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
173 |
|
$ |
163 |
|
$ |
554 |
|
$ |
440 |
Non- |
|
|
858 |
|
|
774 |
|
|
2,552 |
|
|
2,199 |
Beverage packaging, EMEA, segment |
|
$ |
1,031 |
|
$ |
937 |
|
$ |
3,106 |
|
$ |
2,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable operating earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
14 |
|
$ |
34 |
|
$ |
86 |
|
$ |
97 |
Non- |
|
|
68 |
|
|
91 |
|
|
225 |
|
|
252 |
Beverage packaging, EMEA, segment |
|
$ |
82 |
|
$ |
125 |
|
$ |
311 |
|
$ |
349 |
Net sales and comparable operating earnings for the Russian aluminum packaging business for the three months ended
2. Non-
Non-
Comparable Earnings Before Interest, Taxes, Depreciation and Amortization (Comparable EBITDA), Comparable Operating Earnings, Comparable Net Earnings, Comparable Diluted Earnings Per Share and Net Debt – Comparable EBITDA is earnings before interest, taxes, depreciation and amortization, business consolidation and other non-comparable costs. Comparable Operating Earnings is earnings before interest, taxes, business consolidation and other non-comparable costs. Comparable Net Earnings is net earnings attributable to
Please see the company's website for further details of the company's non-
A summary of the effects of non-comparable items on after tax earnings is as follows:
|
|
Three Months Ended |
|
|
Nine Months Ended |
||||||||||
|
|
|
|
|
|
||||||||||
($ in millions, except per share amounts) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to |
|
$ |
392 |
|
|
$ |
179 |
|
|
$ |
664 |
|
|
$ |
581 |
Business consolidation and other activities |
|
|
(163) |
|
|
|
141 |
|
|
|
23 |
|
|
|
136 |
Amortization of acquired Rexam intangibles |
|
|
33 |
|
|
|
38 |
|
|
|
102 |
|
|
|
114 |
Share of equity method affiliate non-comparable costs, net of tax |
|
|
- |
|
|
|
(3) |
|
|
|
- |
|
|
|
3 |
Debt refinancing and other costs |
|
|
- |
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
Non-comparable tax items |
|
|
(24) |
|
|
|
(43) |
|
|
|
(38) |
|
|
|
5 |
Comparable Net Earnings |
|
$ |
238 |
|
|
$ |
313 |
|
|
$ |
753 |
|
|
$ |
840 |
Comparable diluted earnings per share |
|
$ |
0.75 |
|
|
$ |
0.94 |
|
|
$ |
2.34 |
|
|
$ |
2.52 |
A summary of the effects of non-comparable items on earnings before interest and taxes is as follows:
|
|
Three Months Ended |
|
|
|
Nine Months Ended |
|||||||
|
|
|
|
|
|
|
|||||||
($ in millions) |
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to |
|
$ |
392 |
|
$ |
179 |
|
|
$ |
664 |
|
$ |
581 |
Net earnings attributable to noncontrolling interests, net of tax |
|
|
2 |
|
|
- |
|
|
|
12 |
|
|
- |
Net earnings |
|
|
394 |
|
|
179 |
|
|
|
676 |
|
|
581 |
Equity in results of affiliates, net of tax |
|
|
12 |
|
|
(8) |
|
|
|
(7) |
|
|
(18) |
Tax provision (benefit) |
|
|
38 |
|
|
(2) |
|
|
|
139 |
|
|
146 |
Earnings before taxes |
|
|
444 |
|
|
169 |
|
|
|
808 |
|
|
709 |
Total interest expense |
|
|
79 |
|
|
69 |
|
|
|
218 |
|
|
202 |
Earnings before interest and taxes |
|
|
523 |
|
|
238 |
|
|
|
1,026 |
|
|
911 |
Business consolidation and other activities |
|
|
(163) |
|
|
141 |
|
|
|
23 |
|
|
136 |
Amortization of acquired Rexam intangibles |
|
|
33 |
|
|
38 |
|
|
|
102 |
|
|
114 |
Comparable Operating Earnings |
|
$ |
393 |
|
$ |
417 |
|
|
$ |
1,151 |
|
$ |
1,161 |
A summary of Comparable EBITDA and Net Debt is as follows:
|
|
Twelve |
|
Less: Nine |
|
Add: Nine |
|
|
|
||||
|
|
Months Ended |
|
Months Ended |
|
Months Ended |
|
Year Ended |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
($ in millions, except ratios) |
|
2021 |
|
2021 |
|
2022 |
|
2022 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to |
|
$ |
878 |
|
$ |
581 |
|
$ |
664 |
|
$ |
961 |
|
Net earnings attributable to noncontrolling interests, net of tax |
|
|
- |
|
|
- |
|
|
12 |
|
|
12 |
|
Net earnings |
|
|
878 |
|
|
581 |
|
|
676 |
|
|
973 |
|
Equity in results of affiliates, net of tax |
|
|
(26) |
|
|
(18) |
|
|
(7) |
|
|
(15) |
|
Tax provision (benefit) |
|
|
156 |
|
|
146 |
|
|
139 |
|
|
149 |
|
Earnings before taxes |
|
|
1,008 |
|
|
709 |
|
|
808 |
|
|
1,107 |
|
Total interest expense |
|
|
283 |
|
|
202 |
|
|
218 |
|
|
299 |
|
Earnings before interest and taxes |
|
|
1,291 |
|
|
911 |
|
|
1,026 |
|
|
1,406 |
|
Business consolidation and other activities |
|
|
142 |
|
|
136 |
|
|
23 |
|
|
29 |
|
Amortization of acquired Rexam intangibles |
|
|
152 |
|
|
114 |
|
|
102 |
|
|
140 |
|
Comparable Operating Earnings |
|
|
1,585 |
|
|
1,161 |
|
|
1,151 |
|
|
1,575 |
|
Depreciation and amortization |
|
|
700 |
|
|
515 |
|
|
510 |
|
|
695 |
|
Amortization of acquired Rexam intangibles |
|
|
(152) |
|
|
(114) |
|
|
(102) |
|
|
(140) |
|
Comparable EBITDA |
|
$ |
2,133 |
|
$ |
1,562 |
|
$ |
1,559 |
|
$ |
2,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest expense |
|
$ |
(283) |
|
$ |
(202) |
|
$ |
(218) |
|
$ |
(299) |
|
Debt refinancing and other costs |
|
|
13 |
|
|
1 |
|
|
2 |
|
|
14 |
|
Interest expense |
|
$ |
(270) |
|
$ |
(201) |
|
$ |
(216) |
|
$ |
(285) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total debt at period end |
|
|
|
|
|
|
|
|
|
|
$ |
8,833 |
|
Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
(473) |
|
Net Debt |
|
|
|
|
|
|
|
|
|
|
$ |
8,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable EBITDA/Interest Expense (Interest Coverage) |
|
|
|
|
|
|
|
|
|
|
|
7.5 |
x |
Net Debt/Comparable EBITDA |
|
|
|
|
|
|
|
|
|
|
|
3.9 |
x |
3. Non-Comparable Items
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
($ in millions) |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-comparable items - income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
Beverage packaging, North and |
|
|
|
|
|
|
|
|
|
|
|
|
Business consolidation and other activities |
|
|
|
|
|
|
|
|
|
|
|
|
Facility closure costs (1) |
|
$ |
(34) |
|
$ |
- |
|
$ |
(34) |
|
$ |
- |
Cost-out plan activities (2) |
|
|
(2) |
|
|
- |
|
|
(2) |
|
|
- |
Individually insignificant items |
|
|
- |
|
|
- |
|
|
(1) |
|
|
(1) |
Other non-comparable items |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquired Rexam intangibles |
|
|
(7) |
|
|
(7) |
|
|
(21) |
|
|
(21) |
Total beverage packaging, North and |
|
|
(43) |
|
|
(7) |
|
|
(58) |
|
|
(22) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beverage packaging, EMEA |
|
|
|
|
|
|
|
|
|
|
|
|
Business consolidation and other activities |
|
|
|
|
|
|
|
|
|
|
|
|
Sale of Russian aluminum beverage packaging business (3) |
|
|
219 |
|
|
- |
|
|
(216) |
|
|
- |
Cost-out plan activities (2) |
|
|
(6) |
|
|
- |
|
|
(6) |
|
|
- |
Facility closure costs |
|
|
- |
|
|
(2) |
|
|
- |
|
|
(5) |
Individually insignificant items |
|
|
1 |
|
|
- |
|
|
(3) |
|
|
- |
Other non-comparable items |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquired Rexam intangibles |
|
|
(12) |
|
|
(16) |
|
|
(41) |
|
|
(49) |
Total beverage packaging, EMEA |
|
|
202 |
|
|
(18) |
|
|
(266) |
|
|
(54) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Beverage packaging, |
|
|
|
|
|
|
|
|
|
|
|
|
Business consolidation and other activities |
|
|
|
|
|
|
|
|
|
|
|
|
Facility closure costs (4) |
|
|
(8) |
|
|
(4) |
|
|
(8) |
|
|
(4) |
Dispute with regional customer (5) |
|
|
- |
|
|
- |
|
|
(22) |
|
|
- |
Brazilian indirect taxes |
|
|
- |
|
|
- |
|
|
- |
|
|
22 |
Individually insignificant items |
|
|
(1) |
|
|
(5) |
|
|
(1) |
|
|
(7) |
Other non-comparable items |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquired Rexam intangibles |
|
|
(14) |
|
|
(14) |
|
|
(42) |
|
|
(42) |
Total beverage packaging, |
|
|
(23) |
|
|
(23) |
|
|
(73) |
|
|
(31) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
|
|
|
|
|
|
|
|
|
|
|
Business consolidation and other activities |
|
|
|
|
|
|
|
|
|
|
|
|
Sale of equity method investment in Metalpack (6) |
|
|
- |
|
|
- |
|
|
298 |
|
|
- |
Cost-out plan activities (2) |
|
|
(6) |
|
|
- |
|
|
(6) |
|
|
- |
Donation to |
|
|
- |
|
|
- |
|
|
(30) |
|
|
- |
Metalpack loan repayment (8) |
|
|
- |
|
|
- |
|
|
16 |
|
|
- |
|
|
|
- |
|
|
- |
|
|
(5) |
|
|
- |
Pension settlements |
|
|
- |
|
|
(130) |
|
|
- |
|
|
(130) |
Sale of equity method investment in |
|
|
- |
|
|
- |
|
|
- |
|
|
(5) |
Individually insignificant items |
|
|
- |
|
|
- |
|
|
(3) |
|
|
(6) |
Other non-comparable items |
|
|
|
|
|
|
|
|
|
|
|
|
Share of equity method affiliate non-comparable costs, net of tax |
|
|
- |
|
|
3 |
|
|
- |
|
|
(3) |
Amortization of acquired Rexam intangibles |
|
|
- |
|
|
(1) |
|
|
2 |
|
|
(2) |
Debt extinguishment and refinance costs |
|
|
- |
|
|
(1) |
|
|
(2) |
|
|
(1) |
Total other |
|
|
(6) |
|
|
(129) |
|
|
270 |
|
|
(147) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total business consolidation and other activities |
|
|
163 |
|
|
(141) |
|
|
(23) |
|
|
(136) |
Total other non-comparable items |
|
|
(33) |
|
|
(36) |
|
|
(104) |
|
|
(118) |
Total non-comparable items |
|
|
130 |
|
|
(177) |
|
|
(127) |
|
|
(254) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of |
|
|
- |
|
|
- |
|
|
- |
|
|
(57) |
Discrete non-comparable tax items (9) |
|
|
(1) |
|
|
(3) |
|
|
5 |
|
|
(4) |
Tax effect on business consolidation and other activities |
|
|
17 |
|
|
35 |
|
|
5 |
|
|
26 |
Tax effect on other non-comparable items |
|
|
8 |
|
|
11 |
|
|
28 |
|
|
30 |
Total non-comparable tax items |
|
|
24 |
|
|
43 |
|
|
38 |
|
|
(5) |
Total non-comparable items, net of tax |
|
$ |
154 |
|
$ |
(134) |
|
$ |
(89) |
|
$ |
(259) |
|
|
(1) |
In the third quarter of 2022, Ball announced the closure of its aluminum beverage can manufacturing facilities in |
|
|
(2) |
In the third quarter of 2022, Ball recorded charges for employee severance and employee benefits related to cost-out plan activities. |
|
|
(3) |
During the third quarter of 2022, Ball sold its Russian aluminum beverage packaging business for |
|
|
(4) |
In the third quarter of 2022, Ball ceased production at its aluminum beverage can manufacturing facility in |
|
|
(5) |
In |
|
|
(6) |
Ball sold its remaining 49 percent owned equity method investment in |
|
|
(7) |
The company donated funds to |
|
|
(8) |
Ball recorded a gain from |
|
|
(9) |
During first quarter of 2022, Ball recorded a benefit for a reduction in the deferred tax liability on the investment in its Russian business which was partially offset by a charge to settle a tax dispute in |
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