Ball Corporation Reports Mixed Q3 Results, Significant Net Earnings Growth Amid Divestiture and Acquisition Activity

Ball Corporation reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a mixed performance in net sales and significant changes in net earnings compared to the previous fiscal period.

For the three months ended September 30, 2024, Ball Corporation's net sales totaled $3,082 million, a decrease of $29 million from $3,111 million in the same period of 2023. The nine-month net sales also declined to $8,915 million from $9,159 million, reflecting a decrease of $244 million. The decline in sales was attributed primarily to lower aluminum prices, which accounted for a $232 million reduction, and lost volumes due to a fire at the Verona, Virginia facility, partially offset by a $33 million increase from higher volumes.

Despite the drop in sales, net earnings attributable to Ball Corporation for the three months ended September 30, 2024, were $197 million, down from $203 million in 2023. However, for the nine months, net earnings surged to $4,040 million, a significant increase from $553 million in the same period last year. This increase was largely driven by a $3.44 billion gain from discontinued operations following the divestiture of the aerospace business, which was completed on February 16, 2024, for $5.6 billion.

The company’s total comprehensive earnings for the three months ended September 30, 2024, were $208 million, compared to $144 million in 2023. For the nine months, total comprehensive earnings rose to $4,048 million from $594 million in the prior year.

In terms of operational efficiency, Ball Corporation reported a decrease in the cost of sales, which was $2,425 million for the third quarter, down from $2,512 million in 2023. The cost of sales represented 79% of consolidated net sales for both the three and nine months ended September 30, 2024, compared to 81% for the same periods in 2023.

The company also undertook strategic actions, including the completion of the aerospace business divestiture and the acquisition of Alucan Entec, S.A., an aluminum packaging business, for €82 million in late October 2024. Additionally, Ball Corporation announced a share repurchase program for up to 40 million shares of its common stock.

As of September 30, 2024, Ball Corporation reported cash and cash equivalents of $1,440 million, a significant increase from $695 million at the end of 2023. Total liabilities decreased to $12,069 million from $15,466 million, while total equity rose to $6,755 million from $3,837 million at the end of the previous year.