Ball slows down in its second quarter

Ball slows in its second quarter with $173 million profit

The multinational Ball Corporation reported its results for the second quarter of the year, although the results were not as expected. Second quarter 2023 net earnings attributable to the corporation totaled $173 million (including a net after-tax loss of $21 million, or 6 cents per diluted share for business consolidation and other non-comparable items).

Diluted earnings per share of 55 cents, on sales of $3.57 billion, compared with a net loss attributable to the corporation of $174 million (including a net after-tax loss of $437 million or $1.37 per diluted share for business consolidation and other non-comparable items, including non-cash and long-lived asset impairments for the Russian beverage packaging operations).

Results for the first six months of 2023 were net earnings attributable to the corporation of US$350 million. In addition, Ball’s second quarter and year-to-date 2023 comparable earnings per diluted share were 61 cents and $1.30, respectively, versus second quarter and prior year comparable earnings per diluted share of 82 cents and $1.59, respectively. Aluminum beverage cans continue to outperform other substrates in the current macroeconomic and retail price environment.

To maximize profitability and optimize low-cost production throughout our North American plant system during the current environment, the company will continue to prudently manage production at certain locations to meet our customers’ demand for innovative aluminum packaging. As a result of the balance between supply and demand so far this year and improved demand trends from selected customers at the end of the second quarter, inventory levels for coil aluminum and finished can inventories have largely normalized and full-year cash generation targets are on track. Fixed cost and SG&A savings, contractual recovery of prior year inflationary costs, and our ability to leverage the flexibility of the manufacturing plant network to serve customers experiencing higher than anticipated growth are expected to improve results year over year, largely in the second half of 2023.