Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - BALL Corp | form-8_k.htm |
| EX-3.II - EXHIBIT 3(II) - BALL Corp | ex3_ii.htm |
|
Exhibit 99.1
|
 |
|
News
Release
|
|
For
Immediate Release
|
http://www.ball.com
|
|
|
Investor
Contact:
|
Ann
T. Scott
|
303-460-3537,
ascott@ball.com
|
|
Media
Contact:
|
Scott
McCarty
|
303-460-2103,
smccarty@ball.com
|
Ball
Announces Third Quarter Results
BROOMFIELD,
Colo., Oct. 29, 2009—Ball Corporation [NYSE:BLL] today reported third quarter
net earnings of $103.7 million, or $1.09 cents per diluted
share, on sales of $1.97 billion, compared to earnings of $101.9 million, or
$1.05 cents per diluted share, on sales of $2.01 billion in the third quarter of
2008.
For the
first nine months of 2009, Ball’s earnings were $306.5 million, or $3.23 per
diluted share, on sales of $5.48 billion. For the same period in 2008, results
were earnings of $285.7 million, or $2.92 per diluted share, on sales of $5.83
billion.
Third
quarter 2009 results include $9.1 million ($5.5 million after-tax, or 6 cents
per diluted share) of transaction costs related to the acquisition of four metal
beverage packaging plants as well as a charge of $13.6 million ($8.8 million
after-tax, or 9 cents per diluted share) for accelerated depreciation and other
costs related primarily to the closure of the two plastic manufacturing plants
announced in the second quarter. Details of third quarter and nine month
comparable segment earnings and business consolidation activities can be found
in Notes 1 and 2 to the unaudited consolidated financial statements that
accompany this news release.
“On a comparable basis, Ball
reported diluted earnings per share of $1.24 in the third quarter, compared to
$1.13 in the third quarter of 2008,” said R. David Hoover, chairman, president
and chief executive officer. “Excellent operating performance from our plants,
as well as cost savings from prior rationalization activities, drove improved
performance.”
- more
-
Ball
Corporation
10 Longs
Peak Drive ·
P.O. Box 5000 ·
Broomfield, CO 80021
Ball
Corporation – 2
Metal
Beverage Packaging, Americas & Asia
Metal
beverage packaging, Americas and Asia, comparable segment operating earnings for
the third quarter were $102.9 million on sales of $706.4 million, compared to
$77 million on sales of $767 million for the same period in 2008. For the first
nine months, comparable earnings were $223.9 million on sales of $2.08 billion,
compared to $228.4 million on sales of $2.3 billion in the first nine months of
2008.
Third
quarter results were higher primarily due to benefits from cost rationalizations
taken over the past 18 months. Though volumes were down moderately in North
America, increasing demand in Asia contributed to better performance during the
quarter. The company’s new joint venture plant in Tres Rios, Brazil, is on
schedule to start up in mid-November to meet the growing demand for beverage
cans in the region.
“The
integration of the new facilities acquired on Oct. 1 from AB InBev is
progressing well, and our focus is on identifying best practices and synergies
across all of our metal beverage plants to enhance operating performance,” said
John A. Hayes, executive vice president and chief operating
officer.
Metal
Beverage Packaging, Europe
Metal
beverage packaging, Europe, segment results in the quarter were operating
earnings of $68.8 million on sales of $478 million, compared to $76.7 million on
sales of $511.3 million in 2008. For the first nine months, earnings were $164.5
million on sales of $1.31 billion, compared to $201.9 million on sales of $1.49
billion in the first nine months of 2008.
While
volumes were relatively flat, segment sales and earnings were lower in
the quarter due primarily to changes in product mix and a lower euro /dollar
exchange rate compared to a year ago.
Metal
Food & Household Products Packaging, Americas
Metal
food and household products packaging, Americas, comparable segment results in
the third quarter were operating earnings of $27.8 million on sales of $459.5
million, compared to $15.8 million in 2008 on sales of $365 million. For the
first nine months, comparable earnings were $112.5 million on sales of $1.07
billion, compared to $44.9 million on sales of $912 million during the same
period in 2008.
Third
quarter results improved due largely to the effects of prior capacity
rationalizations in the segment, better manufacturing performance and
disciplined management of the business.
- more
-
Ball
Corporation
10 Longs
Peak Drive ·
P.O. Box 5000 ·
Broomfield, CO 80021
Ball
Corporation – 3
Plastic
Packaging, Americas
Plastic
packaging, Americas, comparable segment results in the third quarter were
operating earnings of $3.8 million on sales of $156.8 million, compared to $5.3
million on sales of $184.1 million in the third quarter of 2008. For the first
nine months, comparable earnings were $15.2 million on sales of $498.1 million,
compared to $15.8 million on sales of $574 million in the first nine months of
2008.
Growing
demand for specialty plastic packaging for foods and beverages in the quarter
did not offset double-digit volume declines for monolayer PET
bottles.
After the
quarter closed, Ball sold its plastic pail assets for $32 million to BWAY
Corporation. The transaction involved the sale of a pail manufacturing plant in
Newnan, Ga., that produces injection molded plastic pails and drums for products
such as building materials and pool chemicals.
Aerospace
and Technologies
Aerospace
and technologies comparable segment results were operating earnings of $16.2
million on sales of $168.4 million in the quarter, compared to $18.4 million on
sales of $180.8 million in 2008. For the first nine months, comparable earnings
were $45.6 million on sales of $528 million, compared to $56 million on sales of
$550 million in the first nine months of 2008. Backlog at the end of the quarter
was $563.5 million.
Earlier this month, the WorldView-2
remote sensing satellite built for DigitalGlobe successfully launched from
Vandenberg Air Force Base, Calif. The first images from the satellite
were released on Oct. 20. In August, new images were released from the Hubble
Space Telescope following its servicing mission earlier this year. All four of
the working science instruments currently on the telescope were built by Ball
Aerospace. To see
the latest Hubble images, go to http://www.prnewswire.com/mnr/ballaerospace/39853/.
Outlook
“Full-year
capital spending will be reduced to around $200
million and full-year free cash flow will be at least $375
million,” said Raymond J. Seabrook, executive vice president and
chief financial officer. “Free cash flow is not expected to increase
significantly above $375 million in 2009 due to a temporary increase in working
capital levels in some businesses. Next year, we will continue to focus on
deleveraging the company’s balance sheet after the acquisition and, with the
incremental contribution from the acquired facilities and a decrease in working
capital, expect substantially higher full-year free cash flow in
2010.”
- more
-
Ball
Corporation
10 Longs
Peak Drive ·
P.O. Box 5000 ·
Broomfield, CO 80021
Ball
Corporation – 4
“We are
pleased with our solid third quarter results and our improved performance
through the first nine months of the year,” Hoover said. “Despite global
economic uncertainty and
one-time costs associated with the acquisition of the four metal beverage
packaging plants, we anticipate fourth quarter results from continuing
operations will be well
above those of the same period last year.”
Ball
Corporation is a supplier of high-quality metal and plastic 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 more than 14,500 people worldwide and reported 2008
sales of approximately $7.6 billion. For the latest Ball news and for other
company information, please visit www.ball.com.
Conference Call
Details
Ball
Corporation [NYSE: BLL] will hold its regular quarterly conference call on the
company's results and performance today at 9 a.m. (11 a.m. Eastern Time). The
North American toll-free number for the call is 800-732-6870. International
callers should dial 212-231-2907. Please use the following URL for a Web cast of
the live call:
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=115234&eventID=2459788.
For those
unable to listen to the live call, a taped replay will be available after the
call’s conclusion until 1 p.m. Eastern Time on Nov. 5, 2009. To access the
replay, call 800-633-8284 (North American callers) or 402-977-9140
(international callers) and use reservation number 21438727.
A written
transcript of the call will be posted within 48 hours of the call’s conclusion to
Ball’s Web
site at www.ball.com in the investors section under “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 99.2 in our Form 10-K, which are
available at our Web site 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; 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 current global recession
and its effects on liquidity, credit risk, asset values and the economy;
successful or unsuccessful acquisitions, joint
ventures or divestitures; integration of recently acquired businesses;
regulatory action or laws including tax, environmental, health and workplace
safety, including in respect of climate change, 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; reduced cash flow; interest rates affecting our debt;
and changes to unaudited results due to statutory audits or other effects.
# #
#
Ball
Corporation
10 Longs
Peak Drive ·
P.O. Box 5000 ·
Broomfield, CO 80021
|
Condensed
Financials (September
2009)
|
||||||||||||||||
|
Unaudited
Statements of Consolidated Earnings
|
||||||||||||||||
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
|
($
in millions, except per share amounts)
|
September 27,
2009
|
September 28,
2008
|
September 27,
2009
|
September 28,
2008
|
||||||||||||
|
Net sales
(Note 1)
|
$ | 1,969.1 | $ | 2,008.2 | $ | 5,480.9 | $ | 5,828.7 | ||||||||
|
Costs
and expenses
|
||||||||||||||||
|
Cost
of sales (excluding depreciation)
|
1,609.7 | 1,679.9 | 4,515.4 | 4,856.1 | ||||||||||||
|
Depreciation
and amortization
|
70.4 | 73.9 | 206.5 | 224.7 | ||||||||||||
|
Selling,
general and administrative
|
86.8 | 67.5 | 239.9 | 227.6 | ||||||||||||
|
Business
consolidation and other costs (Note 2)
|
22.7 | 9.1 | 46.8 | 20.6 | ||||||||||||
|
Gain
on sale of investments (Note 2)
|
– | – | (34.8 | ) | (7.1 | ) | ||||||||||
| 1,789.6 | 1,830.4 | 4,973.8 | 5,321.9 | |||||||||||||
|
Earnings before interest and
taxes (Note 1)
|
179.5 | 177.8 | 507.1 | 506.8 | ||||||||||||
|
Total
interest expense
|
(28.9 | ) | (33.1 | ) | (79.4 | ) | (104.0 | ) | ||||||||
|
Tax
provision
|
(52.3 | ) | (45.8 | ) | (128.8 | ) | (128.4 | ) | ||||||||
|
Equity
in results of affiliates
|
5.5 | 3.1 | 8.0 | 11.6 | ||||||||||||
|
Less
net earnings attributable to noncontrolling interests
|
(0.1 | ) | (0.1 | ) | (0.4 | ) | (0.3 | ) | ||||||||
|
Net
earnings
|
$ | 103.7 | $ | 101.9 | $ | 306.5 | $ | 285.7 | ||||||||
|
Earnings per share
(Note 2):
|
||||||||||||||||
|
Basic
|
$ | 1.10 | $ | 1.07 | $ | 3.27 | $ | 2.96 | ||||||||
|
Diluted
|
$ | 1.09 | $ | 1.05 | $ | 3.23 | $ | 2.92 | ||||||||
|
Weighted
average shares outstanding (000s):
|
||||||||||||||||
|
Basic
|
93,976 | 95,368 | 93,763 | 96,491 | ||||||||||||
|
Diluted
|
95,351 | 96,604 | 94,950 | 97,796 | ||||||||||||
|
Condensed
Financials (September
2009)
|
||||||||||||||||
|
Unaudited
Statements of Consolidated Cash Flows
|
||||||||||||||||
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
|
($
in millions)
|
September 27,
2009
|
September 28,
2008
|
September 27,
2009
|
September 28,
2008
|
||||||||||||
|
Cash
Flows From Operating Activities:
|
||||||||||||||||
|
Net
earnings
|
$ | 103.7 | $ | 101.9 | $ | 306.5 | $ | 285.7 | ||||||||
|
Depreciation
and amortization
|
70.4 | 73.9 | 206.5 | 224.7 | ||||||||||||
|
Business
consolidation and other activities (Note 2)
|
14.7 | 9.1 | 36.2 | 20.6 | ||||||||||||
|
Gain
on sales of investments (Note 2)
|
– | – | (34.8 | ) | (7.1 | ) | ||||||||||
|
Income
taxes
|
6.7 | 9.4 | 12.8 | 15.7 | ||||||||||||
|
Legal
settlement
|
– | – | – | (70.3 | ) | |||||||||||
|
Other
changes in working capital
|
(197.6 | ) | 16.8 | (528.8 | ) | (349.5 | ) | |||||||||
|
Other
|
(1.0 | ) | (3.1 | ) | 7.7 | 18.6 | ||||||||||
| (3.1 | ) | 208.0 | 6.1 | 138.4 | ||||||||||||
|
Cash
Flows From Investing Activities:
|
||||||||||||||||
|
Additions
to property, plant and equipment
|
(33.2 | ) | (70.3 | ) | (141.3 | ) | (230.8 | ) | ||||||||
|
Cash
collateral deposits, net
|
31.0 | – | 85.7 | – | ||||||||||||
|
Proceeds
from sales of investments (Note 2)
|
– | – | 37.0 | 8.7 | ||||||||||||
|
Other
|
1.4 | 20.0 | 0.7 | 9.8 | ||||||||||||
| (0.8 | ) | (50.3 | ) | (17.9 | ) | (212.3 | ) | |||||||||
|
Cash
Flows From Financing Activities:
|
||||||||||||||||
|
Net
change in borrowings
|
389.7 | (19.2 | ) | 331.7 | 316.1 | |||||||||||
|
Debt
issuance costs
|
(12.1 | ) | – | (12.1 | ) | – | ||||||||||
|
Dividends
|
(9.4 | ) | (9.3 | ) | (28.1 | ) | (28.3 | ) | ||||||||
|
Issuances
(purchases) of common stock, net
|
(8.8 | ) | (76.3 | ) | 2.2 | (257.5 | ) | |||||||||
|
Other
|
3.6 | 1.1 | 6.5 | 3.5 | ||||||||||||
| 363.0 | (103.7 | ) | 300.2 | 33.8 | ||||||||||||
|
Effect
of exchange rate changes on cash
|
(0.5 | ) | (3.5 | ) | 2.3 | 2.4 | ||||||||||
|
Change
in cash
|
358.6 | 50.5 | 290.7 | (37.7 | ) | |||||||||||
|
Cash–beginning
of period
|
59.5 | 63.4 | 127.4 | 151.6 | ||||||||||||
|
Cash–end
of period
|
$ | 418.1 | $ | 113.9 | $ | 418.1 | $ | 113.9 | ||||||||
|
Condensed
Financials (September
2009)
|
||||||||
|
Unaudited
Consolidated Balance Sheets
|
||||||||
|
($
in millions)
|
September 27,
2009
|
September 28,
2008
|
||||||
|
Assets
|
||||||||
|
Current
assets
|
||||||||
|
Cash
and cash equivalents
|
$ | 418.1 | $ | 113.9 | ||||
|
Receivables,
net
|
1,058.7 | 773.8 | ||||||
|
Inventories,
net
|
906.9 | 1,000.9 | ||||||
|
Cash
collateral – receivable
|
67.5 | – | ||||||
|
Deferred
taxes and other current assets
|
225.9 | 128.2 | ||||||
|
Total current
assets
|
2,677.1 | 2,016.8 | ||||||
|
Property,
plant and equipment, net
|
1,812.1 | 1,934.5 | ||||||
|
Goodwill
|
1,867.9 | 1,864.2 | ||||||
|
Other
assets, net
|
435.0 | 396.2 | ||||||
|
Total assets
|
$ | 6,792.1 | $ | 6,211.7 | ||||
|
Liabilities
and Shareholders’ Equity
|
||||||||
|
Current
liabilities
|
||||||||
|
Short-term
debt and current portion of long-term debt
|
$ | 253.1 | $ | 221.5 | ||||
|
Cash
collateral – liability
|
47.7 | – | ||||||
|
Payables
and accrued liabilities
|
1,251.3 | 1,143.2 | ||||||
|
Total current
liabilities
|
1,552.1 | 1,364.7 | ||||||
|
Long-term
debt
|
2,532.7 | 2,438.0 | ||||||
|
Other
long-term liabilities
|
1,228.2 | 1,000.9 | ||||||
|
Shareholders’
equity
|
1,479.1 | 1,408.1 | ||||||
|
Total liabilities and
shareholders’ equity
|
$ | 6,792.1 | $ | 6,211.7 | ||||
|
Unaudited
Notes to Condensed Financials (September
2009)
|
|
1.
|
Business
Segment Information
|
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
|
($
in millions)
|
September 27,
2009
|
September 28,
2008
|
September 27,
2009
|
September 28,
2008
|
||||||||||||
|
Sales–
|
||||||||||||||||
|
Metal
beverage packaging, Americas & Asia
|
$ | 706.4 | $ | 767.0 | $ | 2,075.9 | $ | 2,304.8 | ||||||||
|
Metal
beverage packaging, Europe
|
478.0 | 511.3 | 1,312.4 | 1,487.9 | ||||||||||||
|
Metal
food & household packaging, Americas
|
459.5 | 365.0 | 1,066.5 | 912.0 | ||||||||||||
|
Plastic
packaging, Americas
|
156.8 | 184.1 | 498.1 | 574.0 | ||||||||||||
|
Aerospace
& technologies
|
168.4 | 180.8 | 528.0 | 550.0 | ||||||||||||
|
Net sales
|
$ | 1,969.1 | $ | 2,008.2 | $ | 5,480.9 | $ | 5,828.7 | ||||||||
|
Earnings
before interest and taxes–
|
||||||||||||||||
|
Metal
beverage packaging, Americas & Asia
|
$ | 102.9 | $ | 77.0 | $ | 223.9 | $ | 228.4 | ||||||||
|
Business
consolidation activities (Note 2)
|
(1.0 | ) | (0.6 | ) | (9.3 | ) | (4.0 | ) | ||||||||
|
Total metal beverage packaging,
Americas & Asia
|
101.9 | 76.4 | 214.6 | 224.4 | ||||||||||||
|
Metal
beverage packaging, Europe
|
68.8 | 76.7 | 164.5 | 201.9 | ||||||||||||
|
Metal
food & household packaging, Americas
|
27.8 | 15.8 | 112.5 | 44.9 | ||||||||||||
|
Business
consolidation costs (Note 2)
|
– | (4.5 | ) | – | (4.5 | ) | ||||||||||
|
Total metal food & household
packaging, Americas
|
27.8 | 11.3 | 112.5 | 40.4 | ||||||||||||
|
Plastic
packaging, Americas
|
3.8 | 5.3 | 15.2 | 15.8 | ||||||||||||
|
Business
consolidation activities (Note 2)
|
(12.6 | ) | (4.0 | ) | (24.5 | ) | (8.3 | ) | ||||||||
|
Total plastic packaging,
Americas
|
(8.8 | ) | 1.3 | (9.3 | ) | 7.5 | ||||||||||
|
Aerospace
& technologies
|
16.2 | 18.4 | 45.6 | 56.0 | ||||||||||||
|
Gain
on sale of investment (Note 2)
|
– | – | – | 7.1 | ||||||||||||
|
Total aerospace &
technologies
|
16.2 | 18.4 | 45.6 | 63.1 | ||||||||||||
|
Segment
earnings before interest and taxes
|
205.9 | 184.1 | 527.9 | 537.3 | ||||||||||||
|
Undistributed
corporate costs, net
|
(17.3 | ) | (6.3 | ) | (42.6 | ) | (26.7 | ) | ||||||||
|
Gain
on sale of investment (Note 2)
|
– | – | 34.8 | – | ||||||||||||
|
Business
consolidation and other costs (Note 2)
|
(9.1 | ) | – | (13.0 | ) | (3.8 | ) | |||||||||
|
Total undistributed corporate
costs, net
|
(26.4 | ) | (6.3 | ) | (20.8 | ) | (30.5 | ) | ||||||||
|
Earnings before interest and
taxes
|
$ | 179.5 | $ | 177.8 | $ | 507.1 | $ | 506.8 | ||||||||
|
Unaudited
Notes to Condensed Financials (September
2009)
|
|
2.
|
Business
Consolidation Activities and Other Significant Nonoperating
Items
|
2009
In the
first quarter, a restructuring charge of $5 million ($3.1 million
after tax) was recorded for accelerated depreciation in connection with the
closure of a North American metal beverage plant.
In the
second quarter the following significant nonoperating activities
occurred:
|
●
|
The
company recorded restructuring charges of $16.2 million
($9.8 million after tax) for the closure of two plastic packaging
manufacturing plants, administrative downsizing in our North American
metal beverage business and clean-up costs related to previously closed
and sold facilities.
|
|
|
●
|
The
company sold a portion of its interest in DigitalGlobe for proceeds of
approximately $37 million. As a result of this transaction, a gain of
$34.8 million ($30.7 million after tax) was recorded in
corporate costs.
|
|
|
●
|
The
company recorded $2.9 million ($1.8 million after tax) for
transaction costs pertaining to the acquisition discussed in
Note 3.
|
In the
third quarter, restructuring charges of $13.6 million ($8.8 million
after tax) were recorded for accelerated depreciation and other costs primarily
related to the closure of the two plastic manufacturing plants announced in the
second quarter. Also in the quarter, an additional $9.1 million
($5.5 million after tax) of acquisition transaction costs were recorded
(see Note 3).
2008
In the
first quarter, Ball Aerospace & Technologies Corp. sold its shares in an
Australian subsidiary for $8.7 million, net of cash sold, that resulted in
a pretax gain of $7.1 million ($4.4 million after tax).
In the
second quarter, a net restructuring charge of $11.5 million
($8.1 million after tax) was recorded primarily for the closure of a North
American metal beverage plant, the closure of a Canadian plastic packaging
manufacturing plant and clean-up costs related to previously closed and sold
facilities.
In the
third quarter, $9.1 million ($7.2 million after tax) was recorded
primarily for lease cancellation and accelerated depreciation costs pertaining
to announced plant closures in prior periods.
A
summary of the effects of the above transactions on after-tax earnings
follows:
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
|
($
in millions, except per share amounts)
|
September 27,
2009
|
September 28,
2008
|
September 27,
2009
|
September 28,
2008
|
||||||||||||
|
Net
earnings as reported
|
$ | 103.7 | $ | 101.9 | $ | 306.5 | $ | 285.7 | ||||||||
|
Business
consolidation costs, net of tax
|
8.8 | 7.2 | 21.7 | 15.3 | ||||||||||||
|
Gain
on sales of investments, net of tax
|
– | – | (30.7 | ) | (4.4 | ) | ||||||||||
|
Acquisition
transaction costs, net of tax
|
5.5 | – | 7.3 | – | ||||||||||||
|
Net earnings before above
transactions
|
$ | 118.0 | $ | 109.1 | $ | 304.8 | $ | 296.6 | ||||||||
|
Per diluted share before above
transactions
|
$ | 1.24 | $ | 1.13 | $ | 3.21 | $ | 3.03 | ||||||||
Ball’s
management segregates the above items to evaluate the performance of the
company’s operations. The information is presented on a non-U.S. GAAP basis and
should be considered in connection with the unaudited statements of consolidated
earnings. Non-U.S. GAAP measures should not be considered in
isolation.
|
Unaudited
Notes to Condensed Financials (September
2009)
|
|
3.
|
Subsequent
Events
|
Acquisition
On
October 1, 2009, the company acquired four plants from Anheuser-Busch InBev
for $577 million, subject to customary post-closing adjustments. The plants
consist of three beverage can manufacturing plants and one beverage can end
plant, all of which are located in the U.S. These plants produce about
10 billion aluminum cans and 10 billion easy-open can ends annually.
The transaction is expected to generate revenue and earnings before interest,
taxes, depreciation and amortization of approximately $680 million and
$94 million, respectively, in the first full year of
operation.
Disposition
On
October 23, 2009, Ball closed the sale of its plastic pail assets to BWAY
Corporation for $32 million, subject to customary post-closing adjustments.
The transaction largely involves the sale of a pail manufacturing plant in
Newnan, Georgia, which Ball acquired in 2006 as a part of its purchase of U.S.
Can Corporation and is included in the plastics packaging, Americas, segment.
The plant produces injection molded plastic pails and drums for products such as
building materials and pool chemicals. The company estimates the transaction
will result in an insignificant loss on an after-tax basis.