Ball beats Wall Street estimates, offloads Metalpack business

Ball Corp. (NYSE: BLL) posted a surge in earnings – beating Wall Street projections – this week for the fourth quarter of 2021 and reached an agreement to offload its Ball Metalpack business to Sonoco Co. (NYSE: SON).

The can maker with a large aerospace division posted sales of $3.7 billion in the latest period, or 97 cents per share in adjusted earnings, compared with $3.1 billion in the fourth quarter of 2020.

Net income for the quarter was $297 million, up from Ball’s $227 million in the same period a year earlier.

Zacks’ consensus estimate for revenue and profit was $3.58 billion and 90 cents, respectively.

Full-year 2021 net income was $1.16 billion, or $3.49 per diluted share, compared to $987 million, or $2.97 per diluted share in 2020 .

“We ended 2021 strong and returned approximately $950 million to shareholders after deploying $1.7 billion in capital expenditures to support our growth during the year. Underlying demand for Ball’s portfolio of sustainable aluminum packaging and innovative aerospace technologies continues to outstrip supply,” Ball Chairman John Hayes said in a statement accompanying the company’s quarterly report.

During the period, Ball “initiated additional cost recovery mechanisms and continued to hire talent and replenish inventory of finished goods to position the business for long-term growth despite the challenges associated with the pandemic. , natural disasters and global supply chain disruptions,” he said.

This week, Ball reached a deal that sold Ball Metalpack, a joint venture between Ball Corp. (NYSE: BLL) and California-based venture capital firm Platinum Equity, which makes steel containers for aerosol products, food, household consumables, pet food and other products for $1.35 billion. dollars.

“We are proud of our partnership with Ball Corporation and all that we have accomplished working together over the past three years,” Platinum Equity Partner Louis Samson said in a statement. “By joining forces, we were able to deliver on behalf of the company and its shareholders. This investment is another success story of aligning our interests with those of one of the world’s largest companies and creating value for both of us.

This article was first published by BizWest, an independent news agency, and is published under a license agreement. © 2022 BizWestMedia LLC.


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