Ball Corp (BALL, Financial), the world's largest metal can manufacturer, reported its second quarter 2024 earnings, revealing mixed results. The company missed revenue estimates but exceeded earnings per share (EPS) expectations. The filing can be accessed here.
Company Overview
Ball Corp (BALL, Financial) is a leading manufacturer of metal cans, holding over 40% market share in North America, Europe, and South America. The company focuses on expanding capacity to meet growing demand in developed markets while investing in emerging markets. Ball also has a presence in the U.S. defense industry through its aerospace segment, which it spun off in 1993. The company operates in three segments: beverage packaging in North and Central America, EMEA, and South America, generating $14 billion in revenue in 2023.
Q2 2024 Performance and Challenges
For Q2 2024, Ball Corp (BALL, Financial) reported net earnings attributable to the corporation of $158 million, or total diluted earnings per share of 51 cents, on sales of $2.96 billion. This compares to $173 million in net earnings, or total diluted earnings per share of 55 cents, on sales of $3.07 billion in Q2 2023. The company faced challenges such as lower aluminum costs and higher year-over-year costs, impacting its revenue.
Financial Achievements
Despite the challenges, Ball Corp (BALL, Financial) achieved several financial milestones. The company returned $790 million to shareholders via share repurchases and dividends in the first half of 2024 and is on track to return over $1.6 billion by year-end. Global beverage can shipments increased by 2.8%, and global aluminum aerosol shipments rose by 5.6%.
Segment Performance
Beverage Packaging, North and Central America: This segment reported comparable operating earnings of $210 million on sales of $1.47 billion, compared to $175 million on sales of $1.54 billion in Q2 2023. The increase in earnings was primarily due to lower costs and higher volumes.
Beverage Packaging, EMEA: The segment reported comparable operating earnings of $113 million on sales of $880 million, compared to $98 million on sales of $920 million in Q2 2023. Higher volumes and favorable price/mix contributed to the earnings increase.
Beverage Packaging, South America: This segment reported comparable operating earnings of $37 million on sales of $422 million, compared to $30 million on sales of $405 million in Q2 2023. The increase was driven by favorable price/mix, despite lower volumes due to economic conditions in Argentina.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Sales | $2.96 billion | $3.07 billion |
| Net Earnings | $158 million | $173 million |
| Diluted EPS | 51 cents | 55 cents |
Balance Sheet and Cash Flow
Ball Corp (BALL, Financial) reported total assets of $18.96 billion as of June 30, 2024, compared to $20.17 billion in 2023. The company generated $5.20 billion in cash from investing activities, primarily from the sale of its aerospace business, and used $3.50 billion in financing activities, including share repurchases and dividends.
Commentary and Outlook
“We delivered strong second quarter results and returned $790 million to shareholders in the first half 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 aluminum packaging,” said Daniel W. Fisher, chairman and chief executive officer.
“Our global business performance remains strong and on track to deliver or exceed against our stated goals. We are now on track to return in excess of $1.6 billion to shareholders in 2024,” said Howard Yu, executive vice president and chief financial officer.
Ball Corp (BALL, Financial) continues to focus on innovation and sustainability, aiming to drive long-term shareholder value. The company expects to achieve mid-single-digit growth in comparable diluted earnings per share and generate strong free cash flow in 2024 and beyond.
For more detailed financial information, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Ball Corp for further details.
