Ball (US:BALL)2019-01-31 22:29Financial Data and Key Metrics Changes - In 2018, Ball Corporation returned approximately $850 million to shareholders, exceeding original expectations from 2016 [7] - Comparable full year and fourth quarter 2018 earnings were $2.20 and $0.55 respectively [20] - Net debt ended the year at $6 billion, with an anticipated year-end 2019 net debt remaining around $6 billion [22] Business Line Data and Key Metrics Changes - Global beverage business comparable operating earnings were up 3% year-over-year, with full year global volume growth of 2% [14] - North American segment volumes increased by 4% in the fourth quarter, driven by new categories such as wine and craft beverages [14] - European beverage earnings rose 29% year-over-year in the fourth quarter, with volumes increasing by 10% [18] Market Data and Key Metrics Changes - Aerospace backlog grew by 26% to over $2.2 billion, with headcount increasing by over 35% to approximately 3,700 [10] - Demand environments in Turkey, Egypt, and India improved, but regional volatility in Saudi Arabia led to lower volumes [19] Company Strategy and Development Direction - The company aims to achieve $2 billion in EBITDA and $1 billion in free cash flow by focusing on value over volume and expanding specialty containers [8][12] - Ball Corporation is positioned to lead sustainable growth in global aluminum packaging and aerospace, with a recent $50 million share repurchase authorization [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2019 goals of $2 billion in comparable EBITDA and free cash flow exceeding $1 billion [26] - The company is focused on managing supply chain issues and ensuring quality metal supply to avoid past inefficiencies [16][88] Other Important Information - The company divested its U.S. steel, food, and aerosol business into a 49% owned joint venture, realizing approximately $600 million in cash [10] - Ball Corporation's aerospace business reported 21% revenue growth and 15% operating earnings growth in 2018 [24] Q&A Session Summary Question: Impact of supplier issues in North America - Management indicated a $10 million impact from supplier issues in Q4, with expectations for resolution in Q1 [29][30] Question: Growth in beer consumption - Management noted no significant changes in beer consumption patterns, but acknowledged growth in craft beer and new product launches in cans [36][40] Question: Contract renegotiations in Europe - Approximately a quarter of European volume contracts were renegotiated, with positive outcomes [60] Question: Volume growth in North America - Management expects to sell 2 billion more units in 2019, with a focus on specialty containers [16][75] Question: Risks to achieving targets - The main risk identified is the company's ability to execute on current plans, with external factors being less of a concern [88]