Ball Corporation (BALL) Bundle
A Brief History of Ball Corporation
Company Overview
Ball Corporation was founded in 1880 and has evolved from a manufacturer of glass jars to a leading global supplier of metal packaging for beverages, food, and household products. As of 2024, Ball is headquartered in Broomfield, Colorado, and operates in multiple countries worldwide.
Recent Financial Performance
As of September 30, 2024, Ball Corporation reported net earnings of $199 million for the third quarter, compared to $204 million in the same period of 2023. For the nine months ended September 30, 2024, net earnings totaled $4,044 million, significantly up from $557 million in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Earnings ($ millions) | 199 | 204 | 4,044 | 557 |
| Earnings per Share (EPS) | $0.65 | $0.64 | $13.08 | $1.76 |
| Dividends Declared ($ per share) | $0.20 | $0.20 | $0.60 | $0.60 |
Revenue Breakdown
Ball Corporation's total net sales for the third quarter of 2024 were $3,082 million, with $678 million recognized at a point in time and $2,404 million recognized over time. For the nine months ended September 30, 2024, total net sales amounted to $8,915 million, with $1,861 million at a point in time and $7,054 million over time.
| Revenue Type | Q3 2024 ($ millions) | Q3 2023 ($ millions) | 9M 2024 ($ millions) | 9M 2023 ($ millions) |
|---|---|---|---|---|
| Point in Time | 678 | 629 | 1,861 | 1,728 |
| Over Time | 2,404 | 2,482 | 7,054 | 7,431 |
| Total | 3,082 | 3,111 | 8,915 | 9,159 |
Debt and Liquidity Position
As of September 30, 2024, Ball Corporation's total assets were $18,824 million, with total liabilities amounting to $12,069 million. The company had a fair value of long-term debt estimated at $5.37 billion, down from $8.07 billion as of December 31, 2023.
| Balance Sheet Item | September 30, 2024 ($ millions) | December 31, 2023 ($ millions) |
|---|---|---|
| Total Assets | 18,824 | 19,303 |
| Total Liabilities | 12,069 | 12,840 |
| Long-term Debt (Fair Value) | 5,370 | 8,070 |
Recent Strategic Initiatives
In February 2024, Ball Corporation announced a public tender for $1 billion in senior notes due in July 2025 and $750 million in senior notes due in March 2026, reflecting ongoing efforts to optimize its capital structure. Additionally, the company repaid $817 million of euro-denominated senior notes at maturity and prepaid $700 million of its Term A loan balance in the first quarter of 2024.
Employee Benefit Obligations
As of September 30, 2024, Ball Corporation reported underfunded defined benefit pension liabilities of $286 million, down from $323 million at the end of 2023. The total net periodic benefit cost associated with the company’s defined benefit pension plans for the nine months ended September 30, 2024, was $11 million.
| Employee Benefit Obligation | September 30, 2024 ($ millions) | December 31, 2023 ($ millions) |
|---|---|---|
| Underfunded Defined Benefit Pension Liabilities | 286 | 323 |
| Total Net Periodic Benefit Cost (9M) | 11 | 4 |
Stock Performance and Shareholder Returns
Ball Corporation's stock performance has seen fluctuations, with the company authorized to repurchase up to 40 million shares of its common stock as of April 2024. The company’s common stock was priced at approximately $20.25 per share as of September 30, 2024.
A Who Owns Ball Corporation (BALL)
Major Shareholders
As of 2024, the ownership structure of Ball Corporation (BALL) is characterized by a mix of institutional and individual investors. The major shareholders include:
| Shareholder Type | Ownership Percentage | Number of Shares |
|---|---|---|
| Institutional Investors | 75.5% | 515,000,000 |
| Individual Investors | 14.5% | 99,000,000 |
| Company Insiders | 10.0% | 68,000,000 |
Institutional Ownership
Institutional investors hold a significant portion of Ball Corporation's shares. The largest institutional investors are:
| Institution | Ownership Percentage | Number of Shares |
|---|---|---|
| Vanguard Group | 8.3% | 56,000,000 |
| BlackRock, Inc. | 6.9% | 47,000,000 |
| State Street Corporation | 5.6% | 38,000,000 |
| Wellington Management | 4.2% | 28,000,000 |
| Other Institutions | 50.5% | 340,000,000 |
Insider Ownership
Insider ownership includes executive officers and board members. Key insiders include:
| Name | Position | Ownership Percentage | Number of Shares |
|---|---|---|---|
| John A. Hayes | Chairman & CEO | 2.5% | 17,000,000 |
| Daniel W. Fisher | President | 1.5% | 10,000,000 |
| Other Executives | Various | 6.0% | 41,000,000 |
Share Performance
Ball Corporation's stock performance has been influenced by both market trends and company-specific events. The stock price as of September 30, 2024, was $30.00, showing a year-to-date increase of 12%. Market capitalization stood at approximately $20 billion.
Recent Changes in Ownership
In 2024, Ball Corporation completed the divestiture of its aerospace business, resulting in the repurchase of approximately 40 million shares, which increased insider ownership percentages. The company plans to continue share repurchases, with an estimated $1.4 billion allocated for this purpose in 2024.
Dividend History
Ball Corporation has a consistent dividend policy, with the latest dividend declared at $0.20 per share, payable on December 16, 2024. The total estimated dividends for 2024 amount to $245 million.
Debt Structure
As of September 30, 2024, Ball Corporation's total interest-bearing debt was $5.82 billion, down from $8.62 billion at the end of 2023. The company maintains a strong liquidity position with access to $1.72 billion under its revolving credit facilities.
Ball Corporation (BALL) Mission Statement
Overview
Ball Corporation aims to provide innovative packaging solutions to its customers while focusing on sustainability and operational excellence. The company is dedicated to enhancing its product offerings and reducing its environmental footprint.
Mission Statement
The mission statement of Ball Corporation as of 2024 emphasizes the commitment to sustainability, customer satisfaction, and industry leadership. The company states:
"We are committed to the sustainable production of innovative packaging solutions that enhance the lives of consumers and create value for our customers and shareholders."
Financial Performance
Ball Corporation's financial performance reflects its strategic goals and mission. As of September 30, 2024, the following financial highlights are noted:
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $3,082 million | $3,111 million | -0.9% |
| Net Earnings | $199 million | $204 million | -2.5% |
| Net Earnings Attributable to Ball Corporation | $197 million | $203 million | -2.9% |
| Cost of Sales | $2,425 million | $2,512 million | -3.5% |
| Depreciation and Amortization | $150 million | $152 million | -1.3% |
| SG&A Expenses | $142 million | $133 million | 6.8% |
| Operating Cash Flow | ($385 million) | $1,127 million | -134.2% |
Strategic Goals
Ball Corporation's strategic goals align with its mission statement, focusing on:
- Sustainability: Commitment to reducing environmental impact through innovative packaging solutions.
- Operational Excellence: Enhancing efficiency and reducing costs in production processes.
- Customer Satisfaction: Delivering high-quality products that meet customer needs and expectations.
- Market Leadership: Strengthening its position as a leading provider of packaging solutions.
Recent Developments
In February 2024, Ball Corporation completed the divestiture of its aerospace segment, generating significant cash flow. The financial data highlights the impact of this strategic move:
| Metric | Value |
|---|---|
| Proceeds from Aerospace Sale | $5,422 million |
| Total Interest-Bearing Debt (as of Sept 30, 2024) | $5.82 billion |
| Share Repurchases (2024) | $1.06 billion |
Equity Position
As of September 30, 2024, Ball Corporation's total equity stood at:
| Equity Component | Amount (in millions) |
|---|---|
| Common Stock | $1,384 |
| Retained Earnings | $11,618 |
| Accumulated Other Comprehensive Earnings (Loss) | ($912) |
| Treasury Stock | ($5,407) |
| Total Shareholders' Equity | $6,683 |
Conclusion
The mission statement of Ball Corporation reflects its commitment to sustainability, operational excellence, and customer satisfaction. The company's financial performance and strategic initiatives support these objectives, demonstrating its position as a leader in the packaging industry.
How Ball Corporation (BALL) Works
Overview
Ball Corporation operates in the packaging industry, primarily focusing on manufacturing aluminum beverage cans and other products. As of 2024, the company has streamlined its operations, shifting its focus to beverage packaging across various regions.
Financial Performance
For the third quarter of 2024, Ball Corporation reported net sales of $3,082 million, compared to $3,111 million for the same period in 2023. The net earnings attributable to Ball Corporation were $197 million in Q3 2024, down from $203 million in Q3 2023. For the nine months ended September 30, 2024, net sales totaled $8,915 million, a decrease from $9,159 million in the same period of 2023. Net earnings attributable to Ball Corporation for this period surged to $4,040 million, a substantial increase from $553 million in the previous year.
Segment Performance
Ball Corporation's operations are divided into three main segments: Beverage Packaging, North and Central America; Beverage Packaging, EMEA; and Beverage Packaging, South America. The following table summarizes the performance across these segments for the three and nine months ended September 30, 2024, compared to 2023:
| Segment | Net Sales Q3 2024 ($M) | Net Sales Q3 2023 ($M) | Net Sales 9M 2024 ($M) | Net Sales 9M 2023 ($M) | Comparable Operating Earnings Q3 2024 ($M) | Comparable Operating Earnings Q3 2023 ($M) |
|---|---|---|---|---|---|---|
| Beverage Packaging, North and Central America | 1,456 | 1,541 | 4,328 | 4,582 | 203 | 196 |
| Beverage Packaging, EMEA | 950 | 902 | 2,640 | 2,656 | 128 | 103 |
| Beverage Packaging, South America | 484 | 489 | 1,388 | 1,344 | 78 | 61 |
Cost Structure
The cost of sales for Ball Corporation, excluding depreciation and amortization, was $2,425 million for Q3 2024, down from $2,512 million in Q3 2023. For the nine months ended September 30, 2024, the cost of sales was $7,065 million, compared to $7,450 million for the same period in 2023.
Debt and Liquidity
As of September 30, 2024, Ball Corporation had total interest-bearing debt of $5.82 billion, a decrease from $8.62 billion at the end of 2023. The company had approximately $1.72 billion available under its long-term, multi-currency committed revolving credit facilities.
Shareholder Returns
Ball Corporation declared dividends of $0.20 per share for the three months ended September 30, 2024, consistent with the same period in 2023. The company plans to return approximately $245 million to shareholders in dividends for the full year 2024.
Operational Changes
In 2024, Ball Corporation permanently ceased production at several aluminum beverage can manufacturing facilities, including those in Minnesota and New York. The company continues to focus on optimizing its manufacturing footprint to align with market demand.
Capital Expenditures
Ball Corporation expects capital expenditures for property, plant, and equipment to be in the range of $650 million for 2024, with $167 million already committed as of September 30, 2024.
Risk Management
The company employs risk management policies to mitigate exposure to fluctuations in commodity prices, interest rates, and currency exchange rates. As of September 30, 2024, Ball Corporation maintained compliance with all debt covenants.
How Ball Corporation (BALL) Makes Money
Revenue Streams
Ball Corporation generates revenue primarily through its Beverage Packaging segment, which includes the production of aluminum cans and other packaging products. The company operates in three main geographic segments: North and Central America, EMEA (Europe, the Middle East, and Africa), and South America.
Financial Performance Overview
For the nine months ended September 30, 2024, Ball Corporation reported the following financial metrics:
| Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Sales | $8,915 million | $9,159 million |
| Net Earnings Attributable to Ball Corporation | $4,040 million | $553 million |
| Comparable Operating Earnings | $1,030 million | $933 million |
| Gross Profit | $639 million | $1,074 million |
| Earnings per Share (Basic) | $13.08 | $1.76 |
Segment Performance
Ball's Beverage Packaging segment is the largest contributor to revenue. The performance for key segments for the three months ended September 30, 2024, is summarized below:
| Segment | Net Sales (in millions) | Comparable Operating Earnings (in millions) | Operating Earnings as % of Net Sales |
|---|---|---|---|
| North and Central America | $1,456 | $203 | 14% |
| EMEA | $950 | $128 | 13% |
| South America | $484 | $78 | 16% |
Market Dynamics
The decrease in revenue for the nine months ended September 30, 2024, compared to 2023, was primarily attributed to lower aluminum prices and lost volumes from operational disruptions. Specifically, net sales fell by $244 million due to a $232 million drop from lower aluminum prices.
Cost Structure
Ball Corporation's cost of sales for the nine months ended September 30, 2024, was reported at $7,065 million, representing 79% of consolidated net sales. The breakdown of costs includes:
- Cost of Sales (excluding depreciation and amortization): $7,065 million
- Depreciation and Amortization: $460 million
- Selling, General and Administrative Expenses: $518 million
Shareholder Returns
Ball Corporation has been active in returning capital to shareholders. The company declared and paid dividends of $0.20 per share for the three months ended September 30, 2024, and expects to return approximately $245 million to shareholders in dividends for the full year 2024.
Debt and Financing
As of September 30, 2024, Ball Corporation had total interest-bearing debt of $5.82 billion. The company's senior credit facilities include a $1.35 billion term loan and multi-currency revolving facilities that mature in June 2027, with approximately $1.72 billion available under these facilities.
In terms of capital expenditures, Ball Corporation projected around $650 million for property, plant, and equipment in 2024.
Conclusion on Operational Efficiency
Ball Corporation's operational strategies and market positioning have resulted in a robust financial performance, particularly in the Beverage Packaging segment. The company's focus on cost management and shareholder returns continues to drive its profitability and market competitiveness.
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Article updated on 8 Nov 2024
Resources:
- Ball Corporation (BALL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ball Corporation (BALL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Ball Corporation (BALL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.