Printer Friendly

BALL CORPORATION REPORTS HIGHER SECOND QUARTER SALES; LOWER NET INCOME AND EARNINGS PER SHARE

 MUNCIE, Ind., July 22, /PRNewswire/ -- Ball Corporation (NYSE: BLL) today reported second quarter net sales of $665.5 million, an 11 percent increase over the $599.2 million reported in second quarter of 1992.
 Second quarter net income from continuing operations declined 28 percent to $13.3 million from $18.6 million in 1992. Earnings available to common shareholders were $12.5 million versus $18.7 million in 1992, and net earnings per share from continuing operations were 43 cents compared with 69 cents in the comparable 1992 period, a 38 percent decline. These declines were forecast in a June 25th press release issued by the corporation.
 For the six-month period, sales increased 10 percent to $1.2 billion versus
$1.1 billion. Net income from continuing operations for the six-month period, excluding the effect of a required accounting change for post-retirement benefits, was $22.4 million versus $29.4 million, a 24 percent reduction. Net earnings per share for the six-month period, excluding the effect of the change in accounting, were 74 cents versus $1.07 in 1992, a 31 percent decline.
 Excellent operating performance in Ball's North American metal container operations was offset by earnings declines in both the glass and aerospace businesses, resulting in an overall 10 percent drop in operating income for the quarter. This, coupled with a $3 million increase in interest expense and the dilutive effect of a 13 percent increase in common shares, resulted in decreased net earnings and earnings per share for the second quarter.
 Ball Corporation president and chief executive officer, Delmont A. Davis commented, "The continued integration of the Kerr acquisition, higher labor and energy cost variances, and modernization programs at a number of facilities to accommodate incremental business with a large customer all contributed to costly operating inefficiencies at Ball- InCon during the quarter. Our newly expanded Ruston, La., glass plant is continuing to make progress in quality, productivity and headcount reduction and should report improved performance in the third quarter.
 "We have instituted a number of measures to bolster glass performance in the second half of the year," said Davis. "Ball-InCon's June performance improved over May, a trend which is expected to continue.
 "Our North American metal operations are continuing to perform exceptionally well, with nearly all beverage can plants reporting production records and strong sales volumes gains," said Davis. "While industry can shipments for the first six months have been essentially flat, Ball's beverage can sales volumes increased at a strong double- digit pace.
 "Metal packaging operating earnings were up approximately 25 percent for the quarter and six months despite costs incurred in connection with the reconfiguration of the Baie d'Urfe facility in Quebec. Earnings were enhanced as a result of the first full quarter inclusion of Heekin Can's results. Second quarter operating income in the beverage container business exceeded 1992's performance. Ball's June performance in that business represented an all-time record at both the top and bottom line, a tremendous credit to our workforce in an extremely challenging business environment," said Davis.
 "The food container business, despite some continuing pricing weakness, is performing well at the operating level, and continues to make progress toward achieving synergies from the integration of Heekin into Ball's North American metal container organization. Early indications are that flooding in the upper Midwest should have a negligible impact on Ball's food can business in 1993."
 Lower earnings in aerospace and communications reflected an overall challenging business environment and included continuing product development costs in the segment's visual imaging business. Management is continuing to evaluate this product's progress carefully.
 "While the first half of 1993 has clearly been a disappointment to Ball Corporation, the majority of the company's performance shortfall has been the result of one-time factors that are currently being addressed. We continue to be optimistic about Ball's prospects for the remainder of the year, and have strong expectations for improved performance in all of our businesses in 1994," said Davis.
 FINANCIAL HIGHLIGHTS
 (millions, except share data)
 Three months ending Six months ending
 July 4, June 28, July 4, June 28,
 1993 1992 1993 1992
 Net sales $ 665.5 $ 599.2 $1,200.2 $1,086.5
 Costs and expenses
 Cost of sales 582.8 517.4 1,051.4 943.3
 Selling, distribution
 and administrative
 expenses 47.5 40.9 88.0 74.9
 Interest expense 12.9 9.9 24.2 18.7
 Total 643.2 568.2 1,163.6 1,036.9
 Income from continuing
 operations before
 taxes on income 22.3 31.0 36.6 49.6
 Provision for taxes on
 income (8.5) (11.6) (13.4) (18.7)
 Equity in earnings of
 affiliates 0.3 0.1 1.0 0.3
 Minority interest (0.8) (0.9) (1.8) (1.8)
 Net income from:
 Continuing operations 13.3 18.6 22.4 29.4
 Alltrista operations --- 0.9 2.1 1.4
 Net income before
 cumulative effect of
 changes in accounting
 principles 13.3 19.5 24.5 30.8
 Cumulative effect of
 changes in accounting
 principles, net of tax
 benefit --- --- (34.7) ---
 Net income (loss) 13.3 19.5 (10.2) 30.8
 Preferred dividends, net
 of tax benefit (0.8) (0.8) (1.6) (1.7)
 Net earnings (loss)
 attributable to common
 shareholders $12.5 $18.7 $(11.8) $29.1
 Earnings (loss) per share
 of common stock:
 Continuing operations $ 0.43 $ 0.69 $ 0.74 $ 1.07
 Alltrista operations --- 0.03 0.08 0.05
 Cumulative effect of
 changes in accounting
 principles, net of tax --- --- (1.24) ---
 Total $ 0.43 $ 0.72 $ (0.42) $ 1.12
 Fully diluted earnings
 (loss) per share:
 Continuing operations $ 0.41 $ 0.65 $ 0.74 $ 1.01
 Alltrista operations --- 0.03 0.07 0.05
 Cumulative effect of
 changes in accounting
 principles, net of tax --- --- (1.23) ---
 Total $ 0.41 $ 0.68 $ (0.42) $ 1.06
 -0- 7/22/93
 /CONTACT: Brad Wilks of Ball Corp., 317-747-6165, or 317-282-6198 after hours/
 (BLL)


CO: Ball Corporation ST: Indiana IN: PAP ARO SU: ERN

AR -- CL024 -- 4530 07/22/93 12:15 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 22, 1993
Words:1014
Previous Article:THE PENN CENTRAL CORPORATION REPORTS 1993 SECOND QUARTER RESULTS
Next Article:BANCINSURANCE CORPORATION ELECTS TWO NEW OFFICERS
Topics:


Related Articles
BALL CORP. SAYS EARNINGS DOWN ON SALES GAINS FOR SECOND QUARTER AND FIRST HALF OF 1992
BALL CORP. SAYS EARNINGS DOWN ON SALES GAINS FOR SECOND QUARTER AND FIRST HALF OF 1992
BALL CORPORATION ACHIEVES THIRD QUARTER EARNINGS GAIN ON SLIGHTLY LOWER SALES
BALL CORPORATION ACHIEVES GAINS IN EARNINGS AND SALES FOR QUARTER, YEAR
BALL CORPORATION REPORTS HIGHER FIRST QUARTER SALES; LOWER NET INCOME AND EARNINGS PER SHARE
BALL CORPORATION ANNOUNCES $95 MILLION RESTRUCTURING CHARGE, REDUCES DIVIDEND AND REPORTS FOURTH QUARTER, FULL YEAR 1993 RESULTS
BALL CORPORATION ANNOUNCES $95 MILLION RESTRUCTURING CHARGE, REDUCES DIVIDEND AND REPORTS FOURTH QUARTER, FULL YEAR 1993 RESULTS
FIRST QUARTER NET INCOME, EARNINGS PER SHARE AT ALLTRISTA CORPORATION ROSE FROM 1993
BALL CORPORATION REPORTS 17.7 PERCENT INCREASE IN FIRST QUARTER EARNINGS AVAILABLE TO COMMON SHAREHOLDERS, EPS OF 33 CENTS VERSUS 31 CENTS IN 1993
BALL CORPORATION REPORTS 29.3 PERCENT INCREASE IN SECOND QUARTER NET EARNINGS FROM CONTINUING OPERATIONS; EARNINGS PER SHARE OF 55 CENTS VERSUS 43...

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters