FDBusiness.com

Ball Corporation hit by cost pressures and lower demand in Q1

 Breaking News
  • Greencore to Divest US Business in $1 Billion Deal Greencore Group, the Irish and UK convenience food business, has agreed to sell its entire US business to an affiliate of Hearthside Food Solutions for US$1.075 billion (£817 million) on a cash and debt-free basis. Hearthside is a major US contract food manufacturer with a heritage in US food industry outsourcing. The disposal will leave [...]...
  • The Macallan’s Pioneering New Distillery Installs Flowcrete UK Flooring The new distillery for luxury whisky brand The Macallan has installed a variety of Flowcrete UK floors to create surfaces that would reflect its visual identity and maintain the functional properties required to produce this iconic Scottish spirit. When Edrington, the international spirits group that owns The Macallan, decided to build a £140 million facility to meet increasing global [...]...
  • New Pearl Range Launched to Help Reduce Risk of Cross Contamination Single use glove specialist Unigloves has launched the brand new 15-glove Pearl Colour System nitrile gloves range, helping organisations across the food sector more effectively manage cross contamination risks. The expanded range, combines high quality food handling approved, AQL 1.5 medical grade, powder-free nitrile gloves available in a range of colour finishes – including those [...]...
  • Signed Sealed Delivered With the increased customer focus on postable items such as confectionery, drinks and gifts, UK plastic bottle manufacturers Measom Freer have developed their very own Post Bottle (Ref 6143). With a flat rectangular shape, the bottle can easily be boxed and posted through standard letterboxes, fitting the UK large letter dimensions. Made from clear PVC, which [...]...
  • Irish Distillers to Invest €150 Million in Sites in Cork and Dublin Irish Distillers has announced investment of over €150 million in its sites in Cork and Dublin to meet demand for its products as the Irish whiskey renaissance continues apace. This is accelerated by the continued growth of the company’s flagship Jameson brand, which is now in double or triple-digit growth in more than 80 markets [...]...

Ball Corporation hit by cost pressures and lower demand in Q1

April 25
13:54 2013

Ball Corporation said lower volume trends for standard metal packaging and poor performance of the European beverage container business affected first quarter results for 2013.

The firm reported operating earnings had fell year-on-year for all three of its segments involved in food and beverage in the three months ending 31 March 2013.

“We are encouraged by solid performance in the majority of our packaging businesses given lower volume trends for standard metal packaging during the quarter,” said John A. Hayes, chairman, president and chief executive officer.

“However, this performance was overshadowed by disappointing results in our European beverage container business.”

Segments in detail

Metal food and household products packaging comparable segment results were operating earnings of $34.7m on sales of $367.2m, compared to $39.3m on sales of $378.9m in 2012.

The recently integrated acquisition of the extruded aluminum manufacturing business in Mexico contributed favorably to results in the quarter; however, mid-single digit volume declines across the segment and higher cost inventory carried into the year by domestic tinplate operations were partially offset by improved product mix and manufacturing performance.

The previously announced closure of its Elgin, Illinois food and household products packaging facility recorded charges of $20.8m in Q1 and additional charges of $12m are expected during the remainder of 2013.

Volume declines

Metal beverage packaging, Europe, results in the quarter were operating earnings of $30.9m on sales of $402.9m, compared to $42.4m on sales of $414.5m in 2012.

First quarter comparable operating earnings were negatively affected by low single-digit volume declines, unfavorable mix and higher input costs.

Metal beverage packaging, Americas and Asia, comparable segment operating earnings were $104m in the first quarter on sales of $995.2m, compared to $105.5m on sales of $1bn in 2012.

Demand for speciality packaging

Strong demand for specialty packaging in North America coupled with plant performance and efficiencies helped to offset double-digit 12-ounce volume declines in the quarter.

Certain surplus equipment was redeployed to existing North American metal beverage manufacturing plants from the Gainesville, Florida end manufacturing facility , which will cease operations in the second quarter of 2013.

The first quarter included charges of $1.1m related to the previously announced closures of the Columbus, Ohio, and Gainesville, Florida, facilities and voluntary separation programs.

Additional charges of $10m are expected to be recorded during the remainder of 2013.

In Brazil, volumes were up strongly year-over-year due to the addition of the Alagoinhas beverage can plant. Ball also began installing a second production line in the Alagoinhas plant, which will be operational in late 2013.

In China, double-digit volume increases partially offset challenging pricing caused by industry supply/demand imbalances.

“While business fundamentals have not changed and the majority of our operations are on track to improve performance year-over-year, our first quarter results make it unlikely that we can reach our long-term goal of 10 to 15% diluted earnings per share growth in 2013,” Hayes said.

About Author

colin

colin

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 18, 2018Future Food-Tech London - Marketing Partnership
  • October 21, 2018Int'l Food Products Exhibition (Sial)
  • October 25, 2018Italian Espresso Coffee Show (TriestEspresso Expo)
  • October 25, 2018Finnish Food Fair
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements