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Ball (BALL) - 2025 Q1 - Quarterly Report
BALLBall (BALL)2025-05-06 16:57
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Financial Performance - For the three months ended March 31, 2025, net sales increased by 223millionto223 million to 3,097 million, compared to 2,874millioninthesameperiodin2024,primarilydrivenbya2,874 million in the same period in 2024, primarily driven by a 150 million increase from price/mix and a 117millionincreasefromhighervolume[106].−NetearningsattributabletoBallCorporationforthethreemonthsendedMarch31,2025,decreasedby117 million increase from higher volume [106]. - Net earnings attributable to Ball Corporation for the three months ended March 31, 2025, decreased by 3.51 billion to 179million,primarilyduetoa179 million, primarily due to a 3.61 billion decrease from lower discontinued operations [107]. - Cost of sales for the three months ended March 31, 2025, was 2,493million,representing802,493 million, representing 80% of consolidated net sales, compared to 2,283 million or 79% of net sales in the same period in 2024, with a 179millionincreaseattributedtohigheraluminumcosts[109].−ComparableoperatingearningsforBeveragePackaginginNorthandCentralAmericaincreasedto179 million increase attributed to higher aluminum costs [109]. - Comparable operating earnings for Beverage Packaging in North and Central America increased to 195 million for the three months ended March 31, 2025, from 192millionin2024,withnetsalesrisingto192 million in 2024, with net sales rising to 1,463 million from 1,403million[119].−BeveragePackaginginEMEAreportednetsalesof1,403 million [119]. - Beverage Packaging in EMEA reported net sales of 903 million for the three months ended March 31, 2025, an increase of 93millioncomparedto93 million compared to 810 million in 2024, with comparable operating earnings rising to 96millionfrom96 million from 85 million [123]. - Beverage Packaging in South America achieved net sales of 544millionforthethreemonthsendedMarch31,2025,upfrom544 million for the three months ended March 31, 2025, up from 482 million in 2024, with comparable operating earnings increasing to 69millionfrom69 million from 55 million [125]. Tax and Interest - The effective tax rate for the three months ended March 31, 2025, was 23.1%, a decrease of 3.6 percentage points from 26.7% in the same period in 2024, primarily due to increased tax benefits from U.S. permanent differences [117]. - Interest expense decreased to 70millionforthethreemonthsendedMarch31,2025,from70 million for the three months ended March 31, 2025, from 93 million in 2024, with the interest expense as a percentage of average borrowings decreasing from 5.2% to 4.4% [116]. Cash Flow and Investments - Cash flows used in operating activities were 665millioninQ12025,primarilyduetoworkingcapitaloutflowsof665 million in Q1 2025, primarily due to working capital outflows of 887 million, offset by earnings of 181millionanddepreciationadjustmentsof181 million and depreciation adjustments of 150 million [133]. - Cash flows used in investing activities totaled 207millioninQ12025,mainlydrivenby207 million in Q1 2025, mainly driven by 160 million for the acquisition of Florida Can Manufacturing and 81millionincapitalexpenditures[134].−Cashflowsprovidedbyfinancingactivitieswere81 million in capital expenditures [134]. - Cash flows provided by financing activities were 396 million in Q1 2025, primarily from net inflows of 1.01billioninborrowings,offsetby1.01 billion in borrowings, offset by 555 million in stock repurchases and 57millionindividends[135].ShareholderReturnsandDebt−Thecompanyplanstoreturnapproximately57 million in dividends [135]. Shareholder Returns and Debt - The company plans to return approximately 1.3 billion to shareholders through share repurchases in 2025, with 555millionrepurchasedinQ12025comparedto555 million repurchased in Q1 2025 compared to 182 million in Q1 2024 [142]. - Total interest-bearing debt increased to 6.75billionasofMarch31,2025,upfrom6.75 billion as of March 31, 2025, up from 5.69 billion at December 31, 2024 [144]. - The company has 3.67billionremainingavailableforsharerepurchasesundertheBoardofDirectors′approvedplanasofMarch31,2025[143].CapitalExpendituresandOperationalFocus−Thecompanyexpectscapitalexpendituresforproperty,plant,andequipmenttobearound3.67 billion remaining available for share repurchases under the Board of Directors' approved plan as of March 31, 2025 [143]. Capital Expenditures and Operational Focus - The company expects capital expenditures for property, plant, and equipment to be around 600 million for 2025, with 276millionalreadycontractuallycommittedasofMarch31,2025[139].−Thecompanyisfocusedonmaintainingastrongfinancialpositionthroughoperationalefficiencies,innovativeproductofferings,andstrategicacquisitionstoenhancegrowthinthealuminumpackagingindustry[99].−BallCorporationcontinuestoevaluatepotentialstrategicacquisitionsanddivestiturestobenefitthecompanyanditsshareholders[102].OperationalMetrics−AsofMarch31,2025,dayssalesoutstandingwas77days,withaone−daychangeimpactingoperatingcashflowsby276 million already contractually committed as of March 31, 2025 [139]. - The company is focused on maintaining a strong financial position through operational efficiencies, innovative product offerings, and strategic acquisitions to enhance growth in the aluminum packaging industry [99]. - Ball Corporation continues to evaluate potential strategic acquisitions and divestitures to benefit the company and its shareholders [102]. Operational Metrics - As of March 31, 2025, days sales outstanding was 77 days, with a one-day change impacting operating cash flows by 34 million [133]. - The company recorded net sales of 1.734billionforthethreemonthsendedMarch31,2025,withagrossprofitof1.734 billion for the three months ended March 31, 2025, with a gross profit of 218 million [153]. - Contributions to defined benefit pension plans were 7millioninQ12025,withanexpectedtotalofapproximately7 million in Q1 2025, with an expected total of approximately 32 million for the full year [138].