Ball (US:BALL)2024-10-31 17:25Financial Performance - Net sales for Q3 2024 were $3,082 million, a decrease of 0.9% compared to $3,111 million in Q3 2023[8]. - Net earnings for Q3 2024 were $199 million, down from $204 million in Q3 2023, representing a decrease of 2.5%[9]. - Total comprehensive earnings for Q3 2024 were $208 million, compared to $144 million in Q3 2023, reflecting a growth of 44.4%[9]. - Earnings from continuing operations for the nine months ended September 30, 2024, were $431 million, compared to $386 million for the same period in 2023, an increase of 11.7%[8]. - Net earnings for the nine months ended September 30, 2024, were $4,044 million, a significant increase from $557 million in the same period last year[14]. - For the nine months ended September 30, 2024, total revenue was $8,915 million, compared to $9,159 million for the same period in 2023, indicating a 2.7% decrease[51]. - Net earnings attributable to Ball Corporation for the three months ended September 30, 2024, decreased by $6 million compared to the same period in 2023, primarily due to a decrease of $65 million from lower discontinued operations, net of tax[122]. - Total comprehensive earnings for the nine months ended September 30, 2024, were $4,048 million, compared to $594 million for the same period in 2023[9]. Assets and Liabilities - Total current assets increased to $5,607 million as of September 30, 2024, compared to $4,883 million at the end of 2023, reflecting a growth of 14.8%[12]. - Cash and cash equivalents rose significantly to $1,440 million in Q3 2024, up from $695 million at the end of 2023, marking an increase of 106.5%[12]. - Long-term debt decreased to $5,353 million as of September 30, 2024, down from $7,504 million at the end of 2023, a reduction of 28.8%[12]. - The total liabilities decreased to $12,069 million as of September 30, 2024, down from $15,466 million at the end of 2023, a decrease of 21.5%[12]. - Retained earnings increased to $11,618 million as of September 30, 2024, compared to $7,763 million at the end of 2023, an increase of 49.5%[12]. - Current liabilities decreased to $4.245 billion as of September 30, 2024, down from $5.163 billion as of December 31, 2023[171]. Cash Flow - Cash provided by operating activities was $(385) million, compared to $1,127 million in the prior year, indicating a decline in operational cash flow[14]. - Cash provided by investing activities was $5,181 million, a substantial increase from $(826) million in the previous year, primarily due to business dispositions[14]. - The company reported a net change in cash, cash equivalents, and restricted cash of $734 million, up from $791 million in the previous year[14]. - Cash flows used in operating activities were $(385) million for the nine months ended September 30, 2024, primarily driven by working capital outflows of $630 million[150]. - Cash flows provided by investing activities were $5.18 billion in 2024, primarily from the sale of the aerospace business, which generated initial cash proceeds of $5.42 billion[151]. - Cash flows used in financing activities were $(4.00) billion in 2024, mainly due to net repayments of long-term borrowings of $2.83 billion and repurchases of common stock totaling $1.06 billion[152]. Business Operations - The company completed the divestiture of its aerospace business on February 16, 2024, marking a strategic shift in its operations[19]. - The company now reports its financial performance in three segments: North and Central America, EMEA, and South America, following the divestiture of the aerospace segment[19]. - The Ball Aluminum Cups business had net assets of $213 million as of September 30, 2024, representing less than 1% of the company's total net sales for the nine months ended September 30, 2024[27]. - The company is assessing the impact of new climate-related disclosure rules adopted by the SEC, with effective dates currently uncertain[32]. - The current global economic environment poses risks related to inflation, supply chain disruptions, and geopolitical conflicts, which may impact the company's operations[21]. Shareholder Returns - Common dividends declared totaled $185 million for the nine months ended September 30, 2024[82]. - The company plans to return approximately $245 million to shareholders in dividends for the full year 2024, with a cash dividend of 20 cents per share payable on December 16, 2024[156]. - The company repurchased up to 40 million shares of its common stock, replacing all previous authorizations[81]. Segment Performance - Comparable segment operating earnings for Beverage packaging, North and Central America increased to $203 million, up 3.6% from $196 million in the prior year[40]. - Reportable segment sales for Beverage packaging, EMEA increased to $950 million, up 5.3% from $902 million in the same quarter last year[40]. - Beverage Packaging segment net sales in EMEA for the three months ended September 30, 2024, were $950 million, an increase from $902 million in the same period of 2023, while for the nine months, they were $2,640 million, slightly down from $2,656 million[138]. - Beverage Packaging segment net sales in South America for the three months ended September 30, 2024, were $484 million, down from $489 million in the same period of 2023, while for the nine months, they were $1,388 million, up from $1,344 million[140]. Tax and Pension - The effective tax rate for the three months ended September 30, 2024, was 18.5%, an increase of 0.7 percentage points compared to the statutory U.S. tax rate due to Pillar Two Global Minimum Taxes[72]. - Contributions to defined benefit pension plans were $24 million for the first nine months of 2024, compared to $13 million for the same period in 2023[78]. - The company anticipates total contributions to defined benefit pension plans to be approximately $30 million for the full year of 2024[78]. - Underfunded defined benefit pension liabilities decreased from $323 million on December 31, 2023, to $286 million on September 30, 2024[74]. Legal and Regulatory Matters - The company has ongoing legal proceedings related to product liability and environmental claims, with potential liabilities that cannot be reasonably estimated[102]. - The company is involved in various governmental assessments in Brazil, primarily related to tax claims, with outcomes that are currently unpredictable[105]. - The company has not recorded any material liabilities for indemnifications and guarantees in its financial statements[108].