BROOMFIELD, Colo., April 25, 2013 /PRNewswire/ -- Ball Corporation (NYSE:BLL) today reported first quarter net earnings attributable to the corporation of $72.0 million, or 47 cents per diluted share (including after tax charges of $15.9 million, or 11 cents per diluted share for business consolidation costs, discontinued operations and other activities) on sales of $2.0 billion, compared to $88.3 million, or 55 cents per diluted share, on sales of $2.0 billion in the first quarter of 2012. Comparable earnings per diluted share were 58 cents, an 8 percent decrease over 2012 first quarter results of 63 cents.

"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."

Details of comparable segment earnings and business consolidation activities can be found in the notes to the unaudited consolidated financial statements that accompany this news release. Beginning this quarter, the company is reporting its quarterly results on a calendar basis, resulting in two fewer days in the first quarter. Additionally, the European extruded aluminum packaging business results are reflected in the metal food and household products packaging segment. Historical quarterly results for the metal food and household products packaging and metal beverage packaging, Europe, segments reflect this change.

Metal Beverage Packaging, Americas & Asia

Metal beverage packaging, Americas and Asia, comparable segment operating earnings were $104.0 million in the first quarter on sales of $995.2 million, compared to $105.5 million on sales of $1 billion in 2012.

Strong demand for specialty packaging in North America coupled with excellent 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, Fla., end manufacturing facility, which will cease operations in the second quarter of 2013. In Brazil, volumes were up strongly year-over-year due to the addition of the Alagoinhas beverage can plant. Also in the quarter, Ball 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.

Metal Beverage Packaging, Europe

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

First quarter comparable operating earnings were negatively affected by low single-digit volume declines, unfavorable mix and higher input costs. Initiatives have commenced to address the operating cost structure for the segment over the balance of the year including the consolidation of the Ratingen, Germany, regional administrative offices into the Bonn, Germany, technical center effective the first half of 2014.

Metal Food & Household Products Packaging

Metal food and household products packaging comparable segment results in the quarter were operating earnings of $34.7 million on sales of $367.2 million, compared to $39.3 million on sales of $378.9 million 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 our domestic tinplate operations were partially offset by improved product mix and manufacturing performance. The segment also announced the closure of its Elgin, Ill., food and household products packaging facility to better optimize its manufacturing footprint.

Aerospace and Technologies

Aerospace and technologies comparable segment results were operating earnings of $17.9 million on sales of $231.4 million in the quarter, compared to $19.7 million on sales of $201.6 million in 2012.

Segment earnings performance in the quarter reflected timing impacts of program starts in advance of sequestration implementation relative to year-end levels. During the quarter, the Landsat Data Continuity Mission for NASA and the United States Geological Survey was successfully launched. The mission continues a 40-year data record of earth observations from space. Ball Aerospace built the Operational Land Imager instrument for that mission. Excellent program execution and contracted backlog levels exceeding $1 billion are expected to provide ongoing business stability.

Outlook

"Even with first quarter earnings coming in below our expectations, we continue to anticipate full year 2013 free cash flow to be in the range of $450 million," said Scott C. Morrison, senior vice president and chief financial officer.

"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 percent diluted earnings per share growth in 2013," Hayes said.

Ball Corporation is a supplier of high quality packaging for beverage, food and household products customers, and of aerospace and other technologies and services, primarily for the U.S. government. Ball Corporation and its subsidiaries employ approximately 15,000 people worldwide and reported 2012 sales of more than $8.7 billion. For the latest Ball news and for other company information, please visit http://www.ball.com.

Conference Call Details
Ball Corporation (NYSE: BLL) will hold its regular quarterly conference call on the company's results and performance on Thursday, April 25, 2013, at 9 a.m. Mountain Time (11 a.m. Eastern). The North American toll-free number for the call is 800-268-2160. International callers should dial 303-223-2680. Please use the following URL for a webcast of the live call:

http://www.media-server.com/m/acs/6d64c2d06298319cb52bd34f53206516

For those unable to listen to the live call, a taped replay will be available at 11 a.m. Mountain Time on April 25, 2013, until 11 a.m. Mountain Time on May 2, 2013. To access the replay, call 800-633-8284 (North American callers) or 402-977-9140 (international callers) and use reservation number 21653175.

A written transcript of the call will be posted within 48 hours of the call's conclusion to Ball's website at www.ball.com in the investors section under "news and presentations."

Forward-Looking Statements
This release contains "forward-looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates" and similar expressions are intended to identify forward-looking statements. Such statements are subject to risks and uncertainties which could cause actual results to differ materially from those expressed or implied. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key risks and uncertainties are summarized in filings with the Securities and Exchange Commission, including Exhibit 99 in our Form 10-K, which are available on our website and at www.sec.gov. Factors that might affect our packaging segments include fluctuation in product demand and preferences; availability and cost of raw materials; competitive packaging availability, pricing and substitution; changes in climate and weather; crop yields; competitive activity; failure to achieve anticipated productivity improvements or production cost reductions; mandatory deposit or other restrictive packaging laws; changes in major customer or supplier contracts or loss of a major customer or supplier; political instability and sanctions; and changes in foreign exchange rates or tax rates. Factors that might affect our aerospace segment include: funding, authorization, availability and returns of government and commercial contracts; and delays, extensions and technical uncertainties affecting segment contracts. Factors that might affect the company as a whole include those listed plus: accounting changes; changes in senior management; the recent global recession and its effects on liquidity, credit risk, asset values and the economy; successful or unsuccessful acquisitions; regulatory action or laws including tax, environmental, health and workplace safety, including U.S. FDA and other actions affecting products filled in our containers, or chemicals or substances used in raw materials or in the manufacturing process; governmental investigations; technological developments and innovations; goodwill impairment; antitrust, patent and other litigation; strikes; labor cost changes; rates of return projected and earned on assets of the company's defined benefit retirement plans; pension changes; uncertainties surrounding the U.S. government budget and debt limit; reduced cash flow; interest rates affecting our debt; and changes to unaudited results due to statutory audits or other effects.

SOURCE Ball Corporation