BROOMFIELD, Colo., April 28, 2011 /PRNewswire/ -- Ball Corporation (NYSE: BLL) today reported first quarter net earnings attributable to Ball Corporation of $91.3 million, or 53 cents per diluted share, on sales of $2 billion, compared to $79.3 million, or 42 cents per diluted share, on sales of $1.6 billion in the first quarter of 2010.  Comparable earnings per share, which exclude the impact of the previously announced closing of a metal beverage can plant in California and other business consolidation costs and discontinued operations, were 58 cents, an increase over 43 cents a year ago.

"Momentum from our strong results in 2010 continues into 2011 as we leverage our considerable strengths to grow with our customers in both mature and emerging markets. Our overall strong volume growth in each of our businesses, the impact of the consolidation of our Brazilian joint venture, the acquisitions of our North American slug and European extruded aluminum aerosol businesses and Chinese beverage can joint venture, growth in our aerospace segment and excellent operating performance across all of our businesses contributed to Ball's first quarter results," said John A. Hayes, president and chief executive officer. "Looking forward, we continue to invest in our businesses to meet the increasing demand for our products and to position Ball for growth now and in the future."

Details of 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.

"Our capital projects are on schedule and on budget as we optimize our existing manufacturing footprint in mature markets, and invest in emerging markets for growth to maintain our sizeable position," said Raymond J. Seabrook, executive vice president and chief operating officer, global packaging. "Combined with prior actions around capacity realignment, balancing our supply with demand, and excellent productivity improvements, these results highlight the improved profitability that we expect in our business."

Metal Beverage Packaging, Americas & Asia

Metal beverage packaging, Americas and Asia, comparable segment operating earnings were $115.6 million in the first quarter on sales of $1 billion, compared to $74 million on sales of $774.4 million in the first quarter of 2010. Mid single-digit volume improvement in North America, double digit volume increases in Brazil and China and the consolidation into the segment of the company's Brazilian joint venture results led to significantly improved segment performance.

During the quarter, Ball successfully started up a second production line in the company's Tres Rios, Brazil, plant, and announced plans to build a fourth beverage packaging plant in Brazil and a joint venture metal beverage can plant in Vietnam. Both new plants are expected to start up during the first half of 2012 and their output is contracted under long-term agreements.

Metal Beverage Packaging, Europe

Metal beverage packaging, Europe, comparable segment results in the quarter were operating earnings of $53.1 million on sales of $443 million, compared to $35 million on sales of $367.5 million in 2010.

Mid single-digit volume growth, the smooth integration of an extruded aluminum aerosol business acquired in January, the continued recovery of the beverage can in Germany and excellent operating performance contributed to improved results. The company is accelerating investments in its newly acquired extruded aluminum aerosol business in 2011 to meet demand for those packages. Also during the quarter, Ball completed the relocation and successful start up of a beverage can line from a planned plant in Poland to its existing Belgrade, Serbia, plant.

Metal Food & Household Products Packaging, Americas

Metal food and household products packaging, Americas, comparable segment results in the quarter were operating earnings of $39.8 million on sales of $344.7 million, compared to $21.7 million in 2010 on sales of $285.4 million.

The favorable impact of inventory holding gains, improved aerosol volumes and product mix and continued excellent operational performance and cost controls were partially offset by seasonally weaker food can volumes. The extruded aluminum slug business acquired in July 2010 also contributed favorably to the segment's results.

Aerospace and Technologies

Aerospace and technologies segment results were operating earnings of $18.7 million on sales of $191.2 million in the quarter, compared to $13.5 million on sales of $165 million in 2010. Backlog at the end of the quarter was $1 billion.

Strong performance from the fourth quarter of 2010 continued into 2011. During the first quarter, the Space Based Space Surveillance satellite reached a critical milestone when satellite control authority was turned over to the 1st Space Operations Squadron, 50th Operations Group.

Outlook

"During the first quarter, our company completed a 2-for-1 split of Ball's stock and increased our dividend by 40 percent," said Scott C. Morrison, senior vice president and chief financial officer. "As we said in January, we expect full-year free cash flow to be at least $400 million assuming approximately $500 million of capital expenditures, of which approximately $300 million is for growth projects, and we intend to return it to our shareholders primarily through buy back of our shares. In the first quarter, we acquired a net $150 million of Ball stock."

"The company is on track to have a another excellent year in 2011," Hayes said, "and the investments we are making this year will broaden our product portfolio and expand our businesses into new markets to position Ball for continued growth over the long term. We are committed to achieving our long-term goal of 10 to 15 percent earnings growth per year."

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 more than 14,500 people worldwide and reported 2010 sales of more than $7.6 billion. For the latest Ball news and for other company information, please visit http://www.ball.com.

Conference Call Details

Ball Corporation will hold its regular quarterly conference call on the company's first quarter 2011 results today at 9 a.m. Mountain Time (11 a.m. Eastern). The North American toll-free number for the call is 800-736-4610. International callers should dial 212-231-2919. Please use the following URL for a webcast of the live call: http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=115234&eventID=3927994

For those unable to listen to the live call, a taped replay will be available after the call's conclusion until 11 a.m. Mountain Time (1 p.m. Eastern) on May 5, 2011. To access the replay, call 800-633-8284 (North American callers) or 402-977-9140 (international callers) and use reservation number 21518170.  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 "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 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; reduced cash flow; interest rates affecting our debt; and changes to unaudited results due to statutory audits or other effects.

SOURCE Ball Corporation