Ball (US:BALL)2025-02-20 16:12Financial Performance - Ball Corporation's consolidated net sales for the year ended December 31, 2024, were $11.80 billion, a decrease from $12.06 billion in 2023, representing a decline of approximately 2.2%[241]. - The company recorded a net earnings of $4.01 billion for 2024, significantly up from $711 million in 2023, indicating a substantial increase of approximately 463.5%[245]. - Earnings per share (EPS) for basic continuing operations was $1.39 in 2024, down from $1.54 in 2023, reflecting a decrease of about 9.7%[245]. - The company's total comprehensive earnings for 2024 were $3.93 billion, compared to $474 million in 2023, marking an increase of approximately 728.5%[247]. - The effective tax provision for 2024 was $133 million, compared to $146 million in 2023, indicating a decrease of about 8.9%[245]. - The company reported a currency translation adjustment loss of $232 million in 2024, contrasting with a gain of $55 million in 2023[247]. - Ball Corporation's interest income increased to $68 million in 2024 from $36 million in 2023, representing an increase of approximately 88.9%[245]. - The company's business consolidation and other activities expenses rose to $420 million in 2024, up from $133 million in 2023, reflecting a significant increase of approximately 215.0%[245]. - Net earnings for 2024 reached $4,014 million, a significant increase from $711 million in 2023[250]. Segment Performance - Beverage packaging, North and Central America, accounted for 48% of consolidated net sales in 2024, with approximately 48 billion aluminum beverage containers shipped, representing 34% of the total shipments in the region[50][52]. - The beverage packaging, EMEA, segment contributed 29% to consolidated net sales in 2024, with 36 billion aluminum beverage containers shipped, capturing an estimated 39% of the market in that region[56]. - The beverage packaging, South America, segment represented 17% of consolidated net sales in 2024, with approximately 19 billion aluminum beverage containers shipped, accounting for 45% of South American shipments[59]. - Comparable segment operating earnings for beverage packaging in North and Central America increased to $747 million in 2024, up from $710 million in 2023[332]. Strategic Changes - The aerospace business was divested on February 16, 2024, and is now reported as discontinued operations, leading to a strategic shift in the company's financial reporting[49]. - The company completed the divestiture of its aerospace business for a pre-tax gain of $4.61 billion, with cash proceeds of $5.42 billion received at close[341]. - The company is expanding its operations in the personal & home care market through acquisitions, including the acquisition of Alucan Entec, S.A. in late-October 2024[64]. - The acquisition of Florida Can Manufacturing for $160 million is expected to enhance Ball's supply network in North and Central America[336]. - The company plans to form a strategic partnership for the aluminum cups business in early 2025, leading to its deconsolidation[337]. Risk Management - The company manages commodity price risk related to aluminum through sales contracts that include pass-through pricing and derivative instruments, estimating a $2 million after-tax reduction in net earnings from a hypothetical 10% adverse change in aluminum prices[220][221]. - A 100-basis point increase in interest rates is projected to result in an estimated $1 million after-tax reduction in net earnings over a one-year period[223]. - A hypothetical 10% reduction in currency exchange rates compared to the U.S. dollar would lead to an estimated $19 million after-tax reduction in net earnings[226]. Assets and Liabilities - Total current assets decreased slightly to $4,841 million in 2024 from $4,883 million in 2023[249]. - Total assets decreased to $17,628 million in 2024, down from $19,303 million in 2023[249]. - Total liabilities decreased to $11,698 million in 2024, compared to $15,466 million in 2023[249]. - Long-term debt decreased to $5,312 million in 2024 from $7,504 million in 2023[249]. - The company has obligations outstanding under supplier finance programs amounting to $423 million as of December 31, 2024, down from $703 million at the beginning of the period[319]. Taxation - The effective income tax rate on discontinued operations for 2024 was 23.1%, influenced by state and local taxes[344]. - The total income tax provision for 2024 was $133 million, a decrease from $146 million in 2023 and $138 million in 2022[384]. - The effective tax rate for 2024 was 24.9%, compared to 23.8% in 2023 and 19.4% in 2022[384]. - Ball Corporation has $2.64 billion of adjusted retained earnings in non-U.S. subsidiaries, with $933 million previously subjected to U.S. federal income tax[384]. - Net income tax payments in 2024 were $922 million, significantly higher than $179 million in 2023 and $143 million in 2022[387]. Accounting Practices - The company recognizes sales of packaging products when a customer obtains control, either over time or at a point in time[269]. - The company assesses the fair value of reporting units using market and income approach methodologies, incorporating assumptions related to WACC and growth rates[264]. - The company performs an annual qualitative analysis of goodwill recoverability, with a quantitative impairment test if necessary[263]. - The company recognizes long-lived assets for impairment when future cash flows indicate the carrying amount may not be recoverable[265]. - The company uses the purchase method of accounting for acquisitions, recording assets and liabilities at their estimated fair values, with any excess purchase price recognized as goodwill[295].