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Ball Reports Strong 2012 Results

                       Ball Reports Strong 2012 Results

Highlights

- Full-year 2012 comparable earnings per diluted share increased 12 percent,
to $3.06 vs. $2.73 in 2011

- Fourth quarter comparable earnings per diluted share from continuing
operations were 64 cents, vs. 48 cents in 2011, an increase of 33 percent

- Ball generated $548 million in free cash flow in 2012

- While challenges exist, the company expects continued earnings improvement
in 2013

PR Newswire

BROOMFIELD, Colo., Jan. 31, 2013

BROOMFIELD, Colo., Jan. 31, 2013 /PRNewswire/ --Ball Corporation (NYSE:BLL)
today reported full-year 2012 net earnings attributable to the corporation of
$403.5 million (including after tax charges of $79.5 million, or 51 cents per
diluted share for business consolidation costs, discontinued operationsand
other activities), or $2.55 per diluted share, on sales of $8.7 billion,
compared to $444.0 million, or $2.63 per diluted share, on sales of $8.6
billion in 2011. On a comparable basis, Ball's full-year 2012 results were net
earnings to the corporation of $483.0 million, or $3.06 per diluted share,
compared to $459.6 million, or $2.73 per diluted share, in 2011.

"Ball Corporation's 2012 full-year comparable earnings per share increased 12
percent compared to 2011, a very good performance in a challenging economic
environment," said John A. Hayes, president and chief executive officer.
"Contributions from our growth investments, excellent execution by our
operations and strategic actions taken to align our supply with market demand
led to Ball's improved results."

Fourth quarter 2012 net earnings attributable to Ball Corporation were $60.6
million, or 39 cents per diluted share,  on sales of $2.1 billion, compared to
$77.5 million, or 47 cents per diluted share, on sales of $2.1 billion, in the
fourth quarter of 2011. On a comparable basis, Ball's fourth quarter results
were net earnings of $98.9 million, or 64 cents per diluted share, compared to
$78.1 million, or 48 cents per diluted share in the fourth quarter of 2011.

Details of comparable segment earnings for the full year and the fourth
quarter can be found in the notes to the unaudited  consolidated financial
statements that accompany this news release.

Metal Beverage Packaging, Americas & Asia

Metal beverage packaging, Americas and Asia, comparable segment operating
earnings were $522.5 million for full-year 2012 on sales of $4.5 billion,
compared to $481.7 million in 2011 on sales of $4.4 billion. For the fourth
quarter, comparable earnings were $138.0 million on sales of $1.1 billion,
compared to $119.9 million on sales of $1.1 billion in 2011.

Excellent operating performance offset increased manufacturing costs, and
strong demand for specialty packaging continued in North America and Brazil.
During the fourth quarter, the company completed the closure of its Columbus,
Ohio, 12-ounce beverage can plant to further align supply with demand and
expanded specialty packaging capabilities across its North American
manufacturing footprint. In Brazil, Ball announced plans for a second
production line in its Alagoinhas beverage can plant. While in Asia,
profitability remained relatively flat on single-digit volume declines year
over year in the fourth quarter due to a focus on disciplined capacity
alignment in a challenging pricing environment.

Metal Beverage Packaging, Europe

Metal beverage packaging, Europe, comparable segment results in 2012 were
operating earnings of $219.0 million on sales of $2.0 billion, compared to
$243.7 million on sales of $2.0 billion in 2011. For the fourth quarter,
comparable operating earnings in 2012 were $37.8 million on sales of $437.4
million, compared to $41.0 million on sales of $451.0 million in the fourth
quarter of 2011.

Full year and fourth quarter comparable operating earnings were negatively
affected by foreign currency translation of $24.7 million and $3.1 million,
respectively. Strong demand for specialty containers partially offset the
impact of soft demand for beer, and extruded aluminum aerosol packaging demand
continued to grow in the quarter and the full year. Beginning in the first
quarter of 2013, the European extruded aluminum packaging results will be
reflected in the global food and household products packaging segment.

Metal Food & Household Products Packaging, Americas

Metal food and household products packaging, Americas, comparable segment
results for 2012 were operating earnings of $131.1 million on sales of $1.4
billion, compared to $133.7 million in 2011 on sales of $1.4 billion. For the
fourth quarter of 2012, comparable segment results were operating earnings of
$28.6 million on sales of $320.2 million, compared to $13.1 million on sales
of $322.8 million in the same period of 2011.

Fourth quarter results were up due to improved manufacturing efficiencies
across all the segment's businesses, which also nearly offset the full year
negative impact of a disappointing 2012 vegetable harvest and lack of
inventory holding gains from the prior year. Also during the quarter, the
company completed the acquisition of an extruded aluminum manufacturing
facility in Mexico.

Aerospace and Technologies

Aerospace and technologies comparable segment results were operating earnings
of $86.6 million on sales of $876.8 million in 2012, compared to $79.6 million
on sales of $784.6 million in 2011. For the fourth quarter, earnings were
$24.2 million on sales of $245.0 million, compared to $18.0 million on sales
of $185.1 million in the fourth quarter of 2011. Contracted backlog at the
close of the year was more than $1 billion.

During the quarter, Ball was selected as  part of a team that will build the
first space-based instrument to monitor major air pollutants across the North
American continent for NASA's Tropospheric Emissions: Monitoring of Pollution
(TEMPO) mission. Ball also signed a contract with the B612 Foundation for Ball
to create infrared imaging sensors for the Sentinel Mission, a privately
funded deep space mission to protect Earth by providing early warning of
threatening asteroids. In December and earlier this month, Ball successfully
integrated all five payloads and a spacecraft de-orbit module onto STPSat-3,
the Department of Defense Space Test Program's Standard Interface Vehicle
(STP-SIV) slated to launch in August 2013.

Outlook

Ball announced yesterday a 30 percent increase in the company's quarterly cash
dividend, payable March 15 to shareholders of record on March 1.

"The company's strong free cash flow allows for the continued return of value
to shareholders through share repurchases and yesterday's increased dividend,"
said Scott C. Morrison, senior vice president and chief financial officer. "We
anticipate full year 2013 free cash flow to be in the range of $450 million as
spending for certain growth investments announced but not completed in 2012
will shift into 2013, including capacity to produce specialty containers in
North America and Brazil."

"Our company's strong 2012 results continued our progress toward achieving our
Drive for 10 vision, and while we face pricing headwinds in Asia and the
previously announced 12-ounce volume loss in North America, we remain focused
on striving to reach our long-term goal of 10 to 15 percent diluted earnings
per share growth," Hayes said.

Ball Corporation is a supplier of high quality packaging for beverage, food
and household products customers, and of aerospace and other technologies and
services, primarily for the U.S. government. Ball Corporation and its
subsidiaries employ approximately 15,000 people worldwide and reported 2012
sales of more than $8.7 billion. For the latest Ball news and for other
company information, please visit http://www.ball.com.

Conference Call Details

Ball Corporation (NYSE: BLL) will hold its regular quarterly conference call
on the company's results and performance on Thursday, Jan. 31, 2013, at 9 a.m.
Mountain Time (11 a.m. Eastern). The North American toll-free number for the
call is 800-272-5460. International callers should dial 303-223-2682. Please
use the following URL for a webcast of the live call:

http://www.media-server.com/m/acs/0fa03f646a156eeac0eceb46582c477a

For those unable to listen to the live call, a taped replay will be available
at 11 a.m. Mountain Time on Jan. 31, 2013, until 11 a.m. Mountain Time on Feb.
7, 2013. To access the replay, call 800-633-8284 (North American callers) or
402-977-9140 (international callers) and use reservation number 21641520.

A written transcript of the call will be posted within 48 hours of the call's
conclusion to Ball's website at www.ball.com in the investors section under
"news and presentations."

Forward-Looking Statements

This release contains "forward-looking" statements concerning future events
and financial performance. Words such as "expects," "anticipates," "estimates"
and similar expressions are intended to identify forward-looking statements.
Such statements are subject to risks and uncertainties which could cause
actual results to differ materially from those expressed or implied. The
company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. Key risks and uncertainties are summarized in filings
with the Securities and Exchange Commission, including Exhibit 99.2 in our
Form 10-K, which are available on our website and at www.sec.gov. Factors that
might affect our packaging segments include fluctuation in product demand and
preferences; availability and cost of raw materials; competitive packaging
availability, pricing and substitution; changes in climate and weather; crop
yields; competitive activity; failure to achieve anticipated productivity
improvements or production cost reductions; mandatory deposit or other
restrictive packaging laws; changes in major customer or supplier contracts or
loss of a major customer or supplier; political instability and sanctions; and
changes in foreign exchange rates or tax rates. Factors that might affect our
aerospace segment include: funding, authorization, availability and returns of
government and commercial contracts; and delays, extensions and technical
uncertainties affecting segment contracts. Factors that might affect the
company as a whole include those listed plus: accounting changes; changes in
senior management; the recent global recession and its effects on liquidity,
credit risk, asset values and the economy; successful or unsuccessful
acquisitions; regulatory action or laws including tax, environmental, health
and workplace safety, including U.S. FDA and other actions affecting products
filled in our containers, or chemicals or substances used in raw materials or
in the manufacturing process; governmental investigations; technological
developments and innovations; goodwill impairment; antitrust, patent and other
litigation; strikes; labor cost changes; rates of return projected and earned
on assets of the company's defined benefit retirement plans; pension changes;
uncertainties surrounding the U.S. government budget and debt limit; reduced
cash flow; interest rates affecting our debt; and changes to unaudited results
due to statutory audits or other effects.



Condensed Financial Statements (Fourth Quarter 2012)
Unaudited Condensed Consolidated Statements of Earnings
                            Three months ended        Year ended
                            December 31,              December 31,
($ in millions, except per  2012         2011         2012         2011
share amounts)
Net sales                   $ 2,114.2    $ 2,051.7    $ 8,735.7    $ 8,630.9
Costs and expenses
  Cost of sales (excluding
  depreciation and          (1,729.4)    (1,702.8)    (7,174.0)    (7,081.2)
  amortization)
  Depreciation and          (72.7)       (78.9)       (282.9)      (301.1)
  amortization
  Selling, general and      (101.0)      (99.2)       (385.5)      (381.4)
  administrative
  Business consolidation    (58.8)       (10.6)       (102.8)      (30.3)
  and other activities
                            (1,961.9)    (1,891.5)    (7,945.2)    (7,794.0)
Earnings before interest    152.3        160.2        790.5        836.9
and taxes
Interest expense            (45.6)       (42.4)       (179.8)      (177.1)
Debt refinancing costs      -            -            (15.1)       -
  Total interest expense    (45.6)       (42.4)       (194.9)      (177.1)
Earnings before taxes       106.7        117.8        595.6        659.8
Tax provision               (35.3)       (41.1)       (165.0)      (201.3)
Equity in results of        (0.3)        8.2          (1.3)        10.1
affiliates, net of tax
Net earnings from           71.1         84.9         429.3        468.6
continuing operations
Discontinued operations,    0.1          0.6          (2.8)        (2.3)
net of tax
Net earnings                71.2         85.5         426.5        466.3
Less net earnings
attributable to             (10.6)       (8.0)        (23.0)       (22.3)
noncontrolling interests
Net earnings attributable   $   60.6  $   77.5  $  403.5   $  444.0
to Ball Corporation
Earnings per share:
  Basic - continuing        $   0.40  $   0.48  $   2.63  $   2.70
  operations
  Basic - discontinued      -            -            (0.02)       (0.01)
  operations
   Total basic earnings    $   0.40  $   0.48  $   2.61  $   2.69
  per share
  Diluted - continuing      $   0.39  $   0.47  $   2.57  $   2.64
  operations
  Diluted - discontinued    -            -            (0.02)       (0.01)
  operations
   Total diluted earnings  $   0.39  $   0.47  $   2.55  $   2.63
  per share
  Weighted average shares
  outstanding (000s):
   Basic                   151,931      160,681      154,648      165,275
   Diluted                 155,492      163,909      158,084      168,590



Condensed Financial Statements (Fourth Quarter 2012)
Unaudited Condensed Consolidated Statements of Cash Flows
                                                              Year ended
                                                              December 31,
($ in millions)                                               2012     2011
Cash Flows from Operating Activities:
Net earnings                                                  $ 426.5  $ 466.3
Discontinued operations, net of tax                           2.8      2.3
Depreciation and amortization                                 282.9    301.1
Business consolidation and other activities                   102.8    30.3
Deferred tax provision                                        14.0     28.4
Other, net                                                    (25.3)   64.7
Changes in working capital                                    54.6     63.6
Cash provided by (used in) continuing operating activities    858.3    956.7
Cash provided by (used in) discontinued operating activities  (5.1)    (8.3)
Total cash provided by (used in) operating activities         853.2    948.4
Cash Flows from Investing Activities:
Capital expenditures                                          (305.0)  (443.8)
Business acquisitions, net of cash acquired                   (71.2)   (295.2)
Other, net                                                    20.2     1.0
Cash provided by (used in) investing activities               (356.0)  (738.0)
Cash Flows from Financing Activities:
Changes in borrowings, net                                    77.8     306.8
Purchases of common stock, net of issuances                   (494.1)  (473.9)
Dividends                                                     (61.8)   (45.7)
Other, net                                                    (8.8)    (4.0)
Cash provided by (used in) financing activities               (486.9)  (216.8)
Effect of currency exchange rate changes on cash              (2.0)    20.2
Change in cash                                                8.3      13.8
Cash - beginning of period                                    165.8    152.0
Cash - end of period                                          $ 174.1  $ 165.8



Condensed Financial Statements (Fourth Quarter 2012)
Unaudited Condensed Consolidated Balance Sheets
                                                       December 31,
($ in millions)                                        2012        2011
Assets
Current assets
 Cash and cash equivalents                             $  174.1  $  165.8
 Receivables, net                                      930.1       910.4
 Inventories, net                                      1,044.4     1,072.5
 Deferred taxes and other current assets               190.8       173.2
 Total current assets                                  2,339.4     2,321.9
Property, plant and equipment, net                     2,288.6     2,220.2
Goodwill                                               2,359.4     2,247.1
Other assets, net                                      519.7       495.4
 Total assets                                          $ 7,507.1   $ 7,284.6
Liabilities and Shareholders' Equity
Current liabilities
 Short-term debt and current portion of long-term debt $  219.8  $  447.4
 Payables and other accrued liabilities                1,466.0     1,408.7
 Total current liabilities                             1,685.8     1,856.1
Long-term debt                                         3,085.3     2,696.7
Other long-term liabilities                            1,446.0     1,353.8
Shareholders' equity                                   1,290.0     1,378.0
 Total liabilities and shareholders' equity            $ 7,507.1   $ 7,284.6



Notes to the Condensed Financial Statements (Fourth Quarter 2012)
1. Business Segment
Information
                                Three months ended      Year ended
                                December 31,            December 31,
($ in millions)                 2012        2011        2012        2011
Net sales -
Metal beverage packaging,       $ 1,114.8   $ 1,094.0   $ 4,541.7   $ 4,415.8
Americas & Asia
Metal beverage packaging,       437.4       451.0       1,950.0     2,017.6
Europe
Metal food & household          320.2       322.8       1,381.4     1,426.4
packaging, Americas
Aerospace & technologies        245.0       185.1       876.8       784.6
Corporate and intercompany      (3.2)       (1.2)       (14.2)      (13.5)
eliminations
Net sales                       $ 2,114.2   $ 2,051.7   $ 8,735.7   $ 8,630.9
Earnings before interest and
taxes -
Metal beverage packaging,       $  138.0  $  119.9  $  522.5  $  481.7
Americas & Asia
Business consolidation and      (19.5)      3.8         (52.4)      (11.0)
other activities
Total metal beverage packaging, 118.5       123.7       470.1       470.7
Americas & Asia
Metal beverage packaging,       37.8        41.0        219.0       243.7
Europe
Business consolidation and      (3.4)       (11.2)      (9.6)       (14.1)
other activities
Total metal beverage packaging, 34.4        29.8        209.4       229.6
Europe
Metal food & household          28.6        13.1        131.1       133.7
packaging, Americas
Business consolidation and      (27.5)      (0.5)       (27.5)      (1.9)
other activities
Total metal food & household    1.1         12.6        103.6       131.8
packaging, Americas
Aerospace & technologies        24.2        18.0        86.6        79.6
Business consolidation and      (1.9)       -           (1.9)       -
other activities
Total aerospace & technologies  22.3        18.0        84.7        79.6
Segment earnings before         176.3       184.1       867.8       911.7
interest and taxes
Undistributed and corporate
expenses and
intercompany eliminations, net  (17.5)      (21.2)      (65.9)      (71.5)
Business consolidation and      (6.5)       (2.7)       (11.4)      (3.3)
other activities
Total undistributed and         (24.0)      (23.9)      (77.3)      (74.8)
corporate expenses, net
Earnings before interest and   $  152.3  $  160.2  $  790.5  $  836.9
taxes



Notes to the Condensed Financial Statements (Fourth Quarter 2012)
2. Significant Business Consolidation Activities and Other Noncomparable
Items
2012
In August 2012, Ball announced plans to close its Columbus, Ohio, U.S.,
beverage can manufacturing facility and its Gainesville, Florida, U.S., can
end facility. The two facilities are being closed in order to consolidate
the company's 12-ounce beverage can and can end production capacity to meet
changing market demand. In connection with the closures and a related
voluntary separation program completed in the segment, the company recorded
charges of $18.9 million ($11.5 million after tax) in the fourth quarter and
$50.2 million ($30.5 million after tax) for the full year. Additional
charges to close the facilities of approximately $13.1 million ($8.4 million
after tax) are expected to be recorded in the first half of 2013.
In the fourth quarter, the company finalized the settlement of certain
Canadian defined benefit pension plan liabilities resulting in pretax
charges of $27.1 million ($16.5 million after tax). The fourth quarter also
included charges of $2.9 million ($1.7 million after tax) for transaction
costs related to the acquisition of Envases del Plata S.A. de C.V. in
December 2012 and $3.4 million ($2.1 million after tax) for a voluntary
separation program offered to corporate headquarters and aerospace and
technologies employees. The fourth quarter and full year included charges of
$1.3 million ($1.0 million after tax) and $1.7 million ($1.3 million after
tax), respectively, related to a fire at one of the company's beverage
container plants in the United Kingdom.
The fourth quarter and full year of 2012 included charges of $2.9 million
($2.1 million after tax) and $12.5 million ($8.9 million after tax),
respectively, for the relocation of the company's European headquarters from
Germany to Switzerland during the third quarter of 2012, as well as fourth
quarter and full year 2012 charges of additional tax expense of $1.9 million
and $3.2 million, respectively, related to the relocation.
The fourth quarter and full year of 2012 also included net charges of $2.3
million ($1.6 million after tax) and $5.0 million ($3.3 million after tax),
respectively, for ongoing costs related to previously closed facilities and
other insignificant costs.
2011
During the fourth quarter, the company recorded charges of $9.6 million
($9.6 million after tax) for the write down of the Lublin, Poland, facility
to net realizable value, as well as charges of $4.1 million ($2.6 million
after tax) incurred in connection with the planned relocation of the
company's European headquarters from Germany to Switzerland in 2012. Also
during the fourth quarter, Ball recorded a net gain of $6.8 million ($4.2
million after tax) for the sale of tangible assets from the Torrance,
California, facility less costs of closing the facility (see discussion
below). Additional charges included $3.0 million ($1.8 million after tax)
related to capacity reduction at the Columbus, Ohio, metal beverage plant
and costs associated with previously closed facilities.
In October 2011, Ball acquired its partners' interests in a former joint
venture metal beverage can plant in Qingdao, PRC. As a result of the
required purchase accounting, the company recorded a gain in equity in
results of affiliates of $9.2 million, related to the previously held
interest in the joint venture.
In January 2011, Ball announced plans to close its Torrance, California,
U.S., beverage can manufacturing facility; relocate a 12-ounce beverage can
line from the Torrance facility to its Whitby, Ontario, Canada, facility;
and expand specialty can production in its Fort Worth, Texas, U.S.,
facility. The company recorded charges of $14.2 million ($8.6 million after
tax) during the first nine months of 2011 in connection with these
activities. The land and building were sold during the fourth quarter of
2011 for a gain of $6.9 million ($4.2 million after tax).
Also in January 2011, the company acquired Aerocan S.A.S. for €221.7 million
($295.2 million) in cash and assumed debt. During the first quarter, the
company recorded transaction costs of $2.9 million ($1.9 million after tax)
related to the acquisition.

A summary of the effects of the above transactions on after-tax
earnings is as follows:
                                        Three months ended  Year ended
                                        December 31,        December 31,
 ($ in millions, except per share       2012      2011      2012      2011
 amounts)
 Net earnings attributable to Ball      $  60.6  $  77.5  $ 403.5   $ 444.0
 Corporation, as reported
 Discontinued operations, net of tax    (0.1)     (0.6)     2.8       2.3
 Business consolidation and other       38.4      10.4      67.5      22.5
 activities, net of tax
 Debt refinancing costs, net of tax     -         -         9.2       -
 Gain and equity earnings related to    -         (9.2)     -         (9.2)
 acquisitions, net of tax
  Net earnings attributable to Ball
 Corporationbefore above transactions  $  98.9  $  78.1  $ 483.0   $ 459.6
 (Comparable Earnings)
  Per diluted share before above       $ 0.64   $ 0.48   $  3.06  $  2.73
 transactions



Notes to the Condensed Financial Statements (Fourth Quarter 2012)
2. Significant Business Consolidation Activities and Other Noncomparable Items
(continued)
A summary of the effects of the above transactions on earnings before
interest and taxes is as follows:
                             Three months ended           Year ended
                             December 31,                 December 31,
     ($ in millions)         2012            2011         2012       2011
     Earnings before
     interest and taxes, as  $ 152.3         $ 160.2      $ 790.5    $ 836.9
     reported
     Business consolidation 58.8            10.6         102.8      30.3
     and other activities
      EBIT before above
     transactions            $ 211.1         $ 170.8      $ 893.3    $ 867.2
     (Comparable EBIT)
A summary of the free cash flow calculation is as follows:
                                                          Year ended
                                                          December 31,
                                                          2012       2011
     Cash flow provided by                                $ 853.2    $ 948.4
     operating activities
     Less capital                                         (305.0)    (443.8)
     expenditures
     Free cash flow                                       $ 548.2    $ 504.6
Free cash flow is typically derived directly from the company's cash flow
statements and defined as cash flows from operating activities (both
continuing and discontinued) less capital expenditures. Cash flow provided
by (used in) operating activities is the most comparable U.S. GAAP term to
free cash flow, and it should not be inferred that the entire free cash flow
amount is available for discretionary expenditures.
Non-U.S. GAAP Measures- Non-U.S. GAAP measures should not be considered in
isolation. They should not be considered superior to, or a substitute for,
financial measures calculated in accordance with U.S. GAAP and may not be
comparable to similarly titled measures of other companies. Presentations of
earnings and cash flows presented in accordance with U.S. GAAP are available
in this earnings release and quarterly and annual regulatory filings.

SOURCE Ball Corporation

Website: http://www.ball.com
Contact: Investors, Ann T. Scott, +1-303-460-3537, ascott@ball.com, or Media,
Scott McCarty, +1-303-460-2103, smccarty@ball.com