Ball Reports Fourth Quarter 2024 Results

Ball Corporation today reported full-year and fourth quarter 2024 results. References to net sales and comparable operating earnings in today's release do not include the company's former aerospace business. Year-over-year net earnings attributable to the corporation and comparable net earnings do include the performance of the company's former aerospace business through the sale date of February 16, 2024.

Ball's fourth quarter 2024 net loss attributable to the corporation, on a U.S. GAAP basis, was $32 million, or total diluted loss per share of 11 cents, on sales of $2.88 billion compared to net earnings attributable to the corporation of $154 million, or total diluted earnings per share of 49 cents, on sales of $2.90 billion in the fourth quarter of 2023. Ball's fourth quarter 2024 comparable earnings per diluted share were 84 cents versus fourth quarter 2023 comparable earnings per diluted share of 78 cents.

"We delivered strong full-year and fourth quarter results and returned $1.96 billion to shareholders in 2024. Leveraging our strong financial position and leaner operating model, the company was able to deliver on its 2024 goals and remains uniquely positioned to enable our purpose of advancing the greater use of sustainable aluminum packaging, despite the current end consumer environment in certain geographies. We continue to complement our purpose by unlocking additional manufacturing efficiencies, driving innovation and sustainability on a global scale, managing our costs and enabling consistent delivery of high-quality, long-term shareholder value creation," said Daniel W. Fisher, chairman and chief executive officer.

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 full-year 2024 were $747 million on sales of $5.62 billion compared to $710 million on sales of $5.96 billion in 2023. For the fourth quarter 2024, segment comparable operating earnings were $142 million on sales of $1.29 billion compared to $156 million on sales of $1.38 billion during the same period in 2023.

Full-year and fourth quarter 2024 sales reflect lower volume and lower price/mix partially driven by the contractual pass through of lower aluminum costs for the year. Full-year segment comparable operating earnings increased year-over-year due to favorable price/mix, cost savings and improved operating performance despite lower than anticipated volume. Fourth quarter segment comparable operating earnings decreased year-over-year driven mostly by lower volume offset by cost savings and improved operating performance. Full-year and fourth quarter segment volume decreased low-single digit and mid-single digit percentages, respectively.

Beverage Packaging, EMEA

Beverage packaging, EMEA, segment comparable operating earnings for full-year 2024 were $416 million on sales of $3.47 billion compared to $354 million on sales of $3.40 billion in 2023. For the fourth quarter, segment comparable operating earnings were $90 million on sales of $826 million compared to $80 million on sales of $739 million during the same period in 2023.

Full-year and fourth quarter sales reflect higher year-over-year volume, partially offset by the contractual pass through of lower aluminum costs for the year. Full-year segment comparable operating earnings reflect higher volume and favorable price/mix. Fourth quarter segment comparable operating earnings increased year-over-year driven by higher volume and price/mix partially offset by higher costs. Segment volume increased by a mid-single digit percentage for the full-year and fourth quarter.

Beverage Packaging, South America:

Beverage packaging, South America, segment comparable operating earnings for full-year 2024 were $296 million on sales of $1.95 billion compared to $266 million on sales of $1.96 billion in 2023. For the fourth quarter, comparable segment operating earnings were $126 million on sales of $563 million compared to $125 million on sales of $616 million during the same period in 2023.

Full-year sales reflect higher year-over-year volume, offset by price/mix. Fourth quarter sales reflect lower year-over-year volume and lower price/mix. Full-year segment comparable operating earnings increased year-over-year due to favorable price/mix. Fourth quarter segment comparable operating earnings increased year-over-year driven by favorable price/mix partially offset by lower volume. Full-year segment volume increased by a low-single digit percentage and declined by a mid-single digit percentage in the fourth quarter.

Non-reportable is comprised of undistributed corporate expenses, net of corporate interest income, the results of the company's global personal & home care (formerly aerosol packaging) business, beverage can manufacturing facilities in India, Saudi Arabia and Myanmar and the company's aluminum cup business.

Full-year and fourth quarter results reflect improved comparable operating earnings for the aluminum packaging businesses in other non-reportable that are offset by higher year-over-year undistributed corporate expenses.

In the fourth quarter of 2024, Ball's Board of Directors provided approval for the company to pursue alternatives for the company's aluminum cup business. This includes an option to form a strategic partnership in early 2025, which is expected to result in deconsolidation of the business by Ball. As a result of the decision to sell the company's controlling financial interest and meeting held for sale criteria in the fourth quarter of 2024, Ball recorded a noncash impairment charge, which is included in business consolidation and other activities in the consolidated statements of earnings for the three months and year ended December 31, 2024.

"Our company performed well and delivered on our stated comparable earnings growth goal while returning $1.96 billion to shareholders in 2024. By consistently executing on our plans to drive continuous improvement, operational excellence and cost management 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 aluminum packaging and to consistently deliver high-quality results, products and returns. In 2025, we are positioned to deliver on our algorithm and exceed 10 percent 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 Ball Business System, best-in-class footprint, product portfolio and operational talent. I want to thank our employees for their hard work to consistently deliver on our growth goals in 2025 and beyond," Fisher said.

About Ball Corporation:

Ball Corporation supplies innovative, sustainable aluminum packaging solutions for beverage, personal care and household products customers. Ball Corporation employs 16,000 people worldwide and reported 2024 net sales of $11.80 billion, which excludes the divested aerospace business. For more information, visit www.ball.com, or connect with us on Facebook or X (Twitter).

Conference Call Details

Ball Corporation will hold its fourth quarter 2024 earnings call today at 9 a.m. Mountain time (11 a.m. Eastern). The North American toll-free number for the call is +1 877-497-9071. International callers should dial +1 201-689-8727. Please use the following URL for a webcast of the live call:

https://event.choruscall.com/mediaframe/webcast.html?webcastid=8plFS7Xq

For those unable to listen to the live call, a webcast replay and written transcript of the call will be posted within 48 hours of the call's conclusion to Ball's website at www.ball.com/investors under "news & presentations."

Forward-Looking Statement

This release contains "forward-looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates," "will," "believe," "continue," "goal" 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 Securities and Exchange Commission, including Exhibit 99 in Ball's Form 10-K, which are available on Ball's website and at www.sec.gov. Additional factors that might affect: a) Ball's packaging segments include product capacity, supply, and demand constraints and fluctuations and changes in consumption patterns; availability/cost of raw materials, equipment, and logistics; competitive packaging, pricing and substitution; changes in climate and weather and related events such as drought, wildfires, storms, hurricanes, tornadoes and floods; footprint adjustments and other manufacturing changes, including the opening and closing of facilities and lines; failure to achieve synergies, productivity improvements or cost reductions; unfavorable mandatory deposit or packaging laws; customer and supplier consolidation; power and supply chain interruptions; changes in major customer or supplier contracts or loss of a major customer or supplier; inability to pass through increased costs; war, political instability and sanctions, including relating to the situation in Russia and Ukraine and its impact on Ball's supply chain and its ability to operate in Europe, the Middle East and Africa regions generally; changes in foreign exchange or tax rates; and tariffs, trade actions, or other governmental actions, including business restrictions and orders affecting goods produced by Ball or in its supply chain, including imported raw materials; and b) Ball as a whole include those listed above plus: the extent to which sustainability-related opportunities arise and can be capitalized upon; changes in senior management, succession, and the ability to attract and retain skilled labor; regulatory actions or issues including those related to tax, environmental, social and governance reporting, competition, environmental, health and workplace safety, including U.S. Federal Drug Administration and other actions or public concerns affecting products filled in Ball's containers, or chemicals or substances used in raw materials or in the manufacturing process; technological developments and innovations; the ability to manage cyber threats; litigation; strikes; disease; pandemic; labor cost changes; inflation; rates of return on assets of Ball's defined benefit retirement plans; pension changes; uncertainties surrounding geopolitical events and governmental policies; reduced cash flow; interest rates affecting Ball's debt; successful or unsuccessful joint ventures, acquisitions and divestitures, and their effects on Ball's operating results and business generally.

Source: Ball Corporation