Ball (US:BALL)2025-05-06 16:57Financial Performance - For the three months ended March 31, 2025, net sales increased by $223 million to $3,097 million, compared to $2,874 million in the same period in 2024, primarily driven by a $150 million increase from price/mix and a $117 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 $179 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 $2,493 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 $179 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 $192 million in 2024, with net sales rising to $1,463 million from $1,403 million [119]. - Beverage Packaging in EMEA reported net sales of $903 million for the three months ended March 31, 2025, an increase of $93 million compared to $810 million in 2024, with comparable operating earnings rising to $96 million from $85 million [123]. - Beverage Packaging in South America achieved net sales of $544 million for the three months ended March 31, 2025, up from $482 million in 2024, with comparable operating earnings increasing to $69 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 $70 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 $665 million in Q1 2025, primarily due to working capital outflows of $887 million, offset by earnings of $181 million and depreciation adjustments of $150 million [133]. - Cash flows used in investing activities totaled $207 million in Q1 2025, mainly driven by $160 million for the acquisition of Florida Can Manufacturing and $81 million in capital expenditures [134]. - Cash flows provided by financing activities were $396 million in Q1 2025, primarily from net inflows of $1.01 billion in borrowings, offset by $555 million in stock repurchases and $57 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 $555 million repurchased in Q1 2025 compared to $182 million in Q1 2024 [142]. - Total interest-bearing debt increased to $6.75 billion as of March 31, 2025, up from $5.69 billion at December 31, 2024 [144]. - The company has $3.67 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 $276 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 $1.734 billion for the three months ended March 31, 2025, with a gross profit of $218 million [153]. - Contributions to defined benefit pension plans were $7 million in Q1 2025, with an expected total of approximately $32 million for the full year [138].