Ball Reports Third Quarter Results

                      Ball Reports Third Quarter Results

Highlights

- Third quarter 2013 comparable earnings per diluted share of $1.00 vs. 90
cents in 2012

- Solid third quarter aerospace backlog at $942 million

- Full-year free cash flow still expected to be in the range of $450 million

- Net full-year share buyback expected to be in the range of $400 million

PR Newswire

BROOMFIELD, Colo., Oct. 24, 2013

BROOMFIELD, Colo., Oct. 24, 2013 /PRNewswire/ -- Ball Corporation (NYSE: BLL)
today reported third quarter net earnings attributable to the corporation of
$115.2 million, or 78 cents per diluted share, on sales of $2.3 billion,
compared to $115.1 million, or 73 cents per diluted share, on sales of $2.3
billion in the third quarter of 2012. Third quarter 2013 net earnings include
after tax charges of $32.0 million, or 22 cents per diluted share, of which
$18 million or 12 cents per diluted share relate to a provision for a customer
receivable, with the remaining after tax charges related to business
consolidation and other costs. 

(Logo: http://photos.prnewswire.com/prnh/20130925/LA85786LOGO)

Results for the first nine months of 2013 were net earnings attributable to
the corporation of $282.3 million, or $1.88 per diluted share, on sales of
$6.5 billion, compared to $342.9 million, or $2.16 per diluted share, on sales
of $6.6 billion in the first nine months of 2012. Year-to-date 2013 net
earnings include after tax charges of $80.5 million for business consolidation
costs, discontinued operations and a provision for a customer receivable.

Comparable 2013 earnings per diluted share for the third quarter and
year-to-date were $1.00 and $2.42, respectively versus third quarter and
year-to-date 2012 comparable earnings per diluted share of 90 cents and $2.42,
respectively. Details of comparable segment earnings and business
consolidation activities can be found in Notes 1 and 2 to the unaudited
consolidated financial statements that accompany this news release.

"Better than expected global beverage can volumes, an improved seasonal
vegetable harvest and solid execution companywide led to improved operational
results," said John A. Hayes, chairman, president and chief executive officer.
"Our ongoing efforts to manage our cost structure and drive EVA dollar growth
are beginning to pay off."

Metal Beverage Packaging, Americas & Asia
Metal beverage packaging, Americas and Asia, comparable segment operating
earnings were $134.8 million in the third quarter on sales of $1.1 billion,
compared to $142.2 million on sales of $1.2 billion in the third quarter of
2012. For the first nine months, comparable segment operating earnings were
$364.5 million on sales of $3.2 billion, compared to $384.5 million on sales
of $3.4 billion during the same period in 2012.

Despite segment volumes being down mid-single digits for the quarter due to
the previously announced loss of business in North America, growth in
specialty containers increased double digits. In North America, our Milwaukee,
Wis., facility ceased production of 12-ounce beverage cans, while other
regional specialty can lines ramped up production. The Alagoinhas, Brazil,
facility completed installation of a second can line capable of manufacturing
multiple can sizes. The Chinese beverage can market continued high
single-digit growth.

Metal Beverage Packaging, Europe
Metal beverage packaging, Europe, results in the quarter were comparable
segment operating earnings of $60.5 million on sales of $488.9 million,
compared to $54.3 million on sales of $450.8 million in 2012. Results for the
first nine months were comparable segment operating earnings of $143.2 million
on sales of $1.4 billion, compared to $152.7 million on sales of $1.4 billion
in 2012.

Third quarter comparable earnings benefitted from stronger than expected
volume growth, improved operating efficiencies and initial progress on
cost-out initiatives announced in the first half of 2013.

Metal Food & Household Products Packaging
Metal food and household products packaging results in the third quarter were
comparable segment operating earnings of $58.4 million on sales of $463.6
million, compared to $50.1 million in 2012 on sales of $445.8 million.
Year-to-date results were comparable segment operating earnings of $140.6
million on sales of $1.2 billion, compared to $131.0 million on sales of $1.2
billion in 2012.

Segment volumes were up near double digits and contributed favorably to third
quarter operational results. Solid global demand for aerosol containers, as
well as improved year-over-year volumes in North America drove volume growth.
Ball continues to invest in its extruded aluminum manufacturing capabilities
to meet increasing market demand.

Aerospace and Technologies
Aerospace and technologies results were comparable segment operating earnings
of $18.0 million on sales of $217.5 million in the third quarter, compared to
$22.5 million on sales of $219.9 million in 2012. For the first nine months,
comparable segment operating earnings were $55.0 million on sales of $675.0
million compared to $62.4 million on sales of $631.8 million during the same
period last year. Backlog at the end of the quarter was $942 million.

A diverse contract portfolio and solid quarter-end backlog level continue to
provide ongoing business stability. During the quarter, the Wide-field
Infrared Survey Explorer (WISE) spacecraft emerged from a two-year hibernation
to resume its near-Earth asteroid hunting mission. Additionally, the STPSat-3
satellite, which is the primary satellite for the U.S. Air Force Operationally
Responsive Space-3 enabler mission, was delivered to Wallops Flight Facility.


Outlook
"We still anticipate free cash flow in the range of $450 million after capital
expenditures of approximately $400 million," said Scott C. Morrison, senior
vice president and chief financial officer. "We will return the majority of
our free cash flow to shareholders through share repurchases and dividends."

"Although global economic circumstances continue to be challenging, our third
quarter operational performance and strong free cash generation reflect our
increasing momentum as we head into 2014," Hayes said. 

About Ball Corporation
Ball Corporation supplies innovative, sustainable packaging solutions for
beverage, food and household products customers, as well as aerospace and
other technologies and services primarily for the U.S. government. Ball
Corporation and its subsidiaries employ 15,000 people worldwide and reported
2012 sales of more than $8.7billion. For more information, visit
www.ball.com, or connect with us on Facebook or Twitter.

Conference Call Details
Ball Corporation (NYSE: BLL) will announce its third quarter 2013 earnings on
Thursday, Oct. 24, at 7 a.m. Mountain Time (9 a.m. Eastern). The North
American toll-free number for the call is 800-926-5068. International callers
should dial 212-231-2939. Please use the following URL for a webcast of the
live call: http://edge.media-server.com/m/p/w973g8bt/lan/en.

For those unable to listen to the live call, a taped replay will be available
from 9 a.m. Mountain Time on Oct. 24 until 9 a.m. Mountain Time on Oct. 31. To
access the replay, call 800-633-8284 (North American callers) or 402-977-9140
(international callers) and use reservation number 21674592. Within 48 hours
of the call's conclusion, a written transcript of the call will be posted to
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 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 in our Form 10-K, which are available on our
website and at www.sec.gov. Factors that might affect: a) our packaging
segments include fluctuation in product demand; availability and cost of raw
materials; competitive packaging, pricing and substitution; changes in climate
and weather; crop yields; competitive activity; failure to achieve
productivity improvements or 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 or tax rates; b) our aerospace segment include
funding, authorization, availability and returns of government and commercial
contracts; and delays, extensions and technical uncertainties affecting
segment contracts; c) the company as a whole include those listed plus:
changes in senior management; successful or unsuccessful acquisitions and
divestitures; 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; technological developments and innovations;
litigation; strikes; labor cost changes; rates of return on assets of the
company's defined benefit retirement plans; pension changes; uncertainties
surrounding the U.S. government budget, sequestration and debt limit; reduced
cash flow; ability to achieve cost-out initiatives; interest rates affecting
our debt.



Condensed Financial Statements (Third Quarter 2013)
Unaudited Condensed Consolidated Statements of Earnings
                            Three Months Ended        Nine Months Ended
                            September 30,             September 30,
($ in millions, except per  2013         2012         2013         2012
share amounts)
Net sales                   $ 2,277.9    $ 2,282.5    $ 6,471.3    $ 6,621.5
Costs and expenses
  Cost of sales (excluding
  depreciation and          (1,846.9)    (1,866.1)    (5,289.3)    (5,444.6)
  amortization)
  Depreciation and          (76.6)       (74.7)       (223.6)      (210.2)
  amortization
  Selling, general and      (99.0)       (86.3)       (311.2)      (284.5)
  administrative
  Business consolidation    (43.8)       (36.8)       (89.1)       (44.0)
  and other activities
                            (2,066.3)    (2,063.9)    (5,913.2)    (5,983.3)
Earnings before interest    211.6        218.6        558.1        638.2
and taxes
Interest expense            (45.5)       (44.2)       (138.0)      (134.2)
Debt refinancing costs      (1.3)        -            (28.0)       (15.1)
  Total interest expense    (46.8)       (44.2)       (166.0)      (149.3)
Earnings before taxes       164.8        174.4        392.1        488.9
Tax provision               (44.1)       (51.7)       (93.0)       (129.7)
Equity in results of        0.9          (0.8)        0.9          (1.0)
affiliates, net of tax
Net earnings from           121.6        121.9        300.0        358.2
continuing operations
Discontinued operations,    0.3          (2.2)        0.4          (2.9)
net of tax
Net earnings                121.9        119.7        300.4        355.3
Less net earnings
attributable to             (6.7)        (4.6)        (18.1)       (12.4)
noncontrolling interests
Net earnings attributable   $  115.2   $  115.1   $  282.3   $  342.9
to Ball Corporation
Earnings per share:
  Basic - continuing        $   0.80  $   0.76  $   1.92  $   2.22
  operations
  Basic - discontinued      -            (0.01)       -            (0.02)
  operations
  Total basic earnings per  $   0.80  $   0.75  $   1.92  $   2.20
  share
  Diluted - continuing      $   0.78  $   0.74  $   1.88  $   2.18
  operations
  Diluted - discontinued    -            (0.01)       -            (0.02)
  operations
  Total diluted earnings    $   0.78  $   0.73  $   1.88  $   2.16
  per share
  Weighted average shares
  outstanding (000s):
  Basic                     144,714      153,604      146,910      155,561
  Diluted                   147,895      157,108      150,122      158,963



Condensed Financial Statements (Third Quarter 2013)
Unaudited Condensed Consolidated Statements of Cash Flows
                                               Nine Months Ended September 30,
($ in millions)                                2013               2012
Cash Flows from Operating Activities:
Net earnings                                   $ 300.4            $ 355.3
Discontinued operations, net of tax            (0.4)              2.9
Depreciation and amortization                  223.6              210.2
Business consolidation and other activities    89.1               44.0
Deferred tax provision                         3.3                15.4
Other, net                                     4.8                (34.1)
Changes in working capital                     (166.6)            (204.4)
 Cash provided by (used in) continuing      454.2              389.3
operating activities
 Cash provided by (used in) discontinued    (2.3)              (1.0)
operating activities
 Total cash provided by (used in)       451.9              388.3
operating activities
Cash Flows from Investing Activities:
Capital expenditures                           (309.6)            (206.9)
Business acquisitions, net of cash acquired    (14.2)             (15.3)
Other, net                                     2.2                18.0
 Cash provided by (used in) investing       (321.6)            (204.2)
activities
Cash Flows from Financing Activities:
Changes in borrowings, net                     213.7              188.3
Purchases of common stock, net of issuances    (267.9)            (304.9)
Dividends                                      (56.8)             (46.6)
Other, net                                     (15.6)             (6.6)
 Cash provided by (used in) financing       (126.6)            (169.8)
activities
Effect of currency exchange rate changes on    (9.6)              1.1
cash
Change in cash                                 (5.9)              15.4
Cash - beginning of period                     174.1              165.8
Cash - end of period                           $ 168.2            $ 181.2



Condensed Financial Statements (Third Quarter 2013)
Unaudited Condensed Consolidated Balance Sheets
                                                       September 30,
($ in millions)                                        2013        2012
Assets
Current assets
 Cash and cash equivalents                             $  168.2  $  181.2
 Receivables, net                                      1,087.5     1,206.3
 Inventories, net                                      980.3       993.0
 Deferred taxes and other current assets               189.4       189.8
 Total current assets                                  2,425.4     2,570.3
Property, plant and equipment, net                     2,360.1     2,220.2
Goodwill                                               2,379.8     2,249.1
Other assets, net                                      543.9       484.4
 Total assets                                          $ 7,709.2   $ 7,524.0
Liabilities and Shareholders' Equity
Current liabilities
 Short-term debt and current portion of long-term debt $  104.5  $  401.7
 Payables and other accrued liabilities                1,465.7     1,428.4
 Total current liabilities                             1,570.2     1,830.1
Long-term debt                                         3,417.5     2,932.1
Other long-term liabilities                            1,404.7     1,291.7
Shareholders' equity                                   1,316.8     1,470.1
 Total liabilities and shareholders' equity            $ 7,709.2   $ 7,524.0



Notes to the Condensed Financial Statements (Third Quarter 2013)
1. Business Segment Information
On January 1, 2013, the company implemented changes to its management and
internal reporting structure. As a result, the European extruded aluminum
business is now included in the metal food and household products packaging
segment. This business was previously included in the metal beverage
packaging, Europe, segment. The segment results for the three and nine months
ended September 30, 2012, have been retrospectively adjusted to conform to the
current year presentation.



                                Three Months Ended      Nine Months Ended
                                September 30,           September 30,
($ in millions)                 2013        2012        2013        2012
Net sales -
Metal beverage packaging,       $ 1,109.2   $ 1,169.6   $ 3,190.7   $ 3,426.9
Americas & Asia
Metal beverage packaging,       488.9       450.8       1,400.5     1,377.0
Europe
Metal food & household products 463.6       445.8       1,213.4     1,196.7
packaging
Aerospace & technologies        217.5       219.9       675.0       631.8
Corporate and intercompany      (1.3)       (3.6)       (8.3)       (10.9)
eliminations
 Net sales                   $ 2,277.9   $ 2,282.5   $ 6,471.3   $ 6,621.5
Earnings before interest and
taxes -
Metal beverage packaging,       $  134.8  $  142.2  $  364.5  $  384.5
Americas & Asia
Business consolidation and      (14.1)      (31.5)      (26.6)      (32.9)
other activities
 Total metal beverage        120.7       110.7       337.9       351.6
packaging, Americas & Asia
Metal beverage packaging,       60.5        54.3        143.2       152.7
Europe
Business consolidation and      (1.7)       (3.5)       (4.6)       (6.2)
other activities
 Total metal beverage        58.8        50.8        138.6       146.5
packaging, Europe
Metal food & household products 58.4        50.1        140.6       131.0
packaging
Business consolidation and      (1.9)       -           (30.4)      -
other activities
 Total metal food &          56.5        50.1        110.2       131.0
household products packaging
Aerospace & technologies        18.0        22.5        55.0        62.4
Business consolidation and      -           -           (0.2)       -
other activities
 Total aerospace &           18.0        22.5        54.8        62.4
technologies
 Segment earnings before     254.0       234.1       641.5       691.5
interest and taxes
Undistributed and corporate
expenses and intercompany       (16.3)      (13.7)      (56.1)      (48.4)
eliminations, net
Business consolidation and      (26.1)      (1.8)       (27.3)      (4.9)
other activities
 Total undistributed and     (42.4)      (15.5)      (83.4)      (53.3)
corporate expenses, net
 Earnings before         $  211.6  $  218.6  $  558.1  $  638.2
interest and taxes



Notes to the Condensed Financial Statements (Third Quarter 2013)
2. Significant Business Consolidation Activities and Other Noncomparable Items
2013
In the third quarter, the company recorded an accounts receivable provision of
$27.0 million ($18.0 million after tax, or $0.12 per diluted share) as a
result of the financial difficulties of a customer. This provision represents
the company's estimate of the most likely potential loss of value it expects
to incur as a result of the financial condition of this customer. The
company's estimate of potential loss as a result of this event may change in
the future if the customer's facts and circumstances change.
During July 2013, the company signed a compensation agreement with the Chinese
government to vacate the Shenzhen manufacturing facility and relocate the
production equipment. The third quarter and first nine months included charges
of $6.8 million ($5.1 million after tax) and $8.1 million ($6.1 million after
tax), respectively, for closure and relocation costs, which are expected to be
reimbursed in the fourth quarter.
The third quarter and first nine months included charges of $1.6 million ($1.0
million after tax) and $8.7 million ($5.3 million after tax) to eliminate
12-ounce beverage can production from the company's Milwaukee, Wisconsin,
facility.
In February 2013, Ball announced that it will close its Elgin, Illinois, metal
food and household products packaging facility in December 2013. The third
quarter and first nine months included charges of $1.9 million ($1.2 million
after tax) and $28.0 million ($17.1 million after tax), respectively, in
connection with the closure.
The third quarter and first nine months also included charges of $5.3 million
($3.2 million after tax) and $8.4 million ($5.1 million after tax),
respectively, related to the previously announced closure of Ball's Columbus,
Ohio, and Gainesville, Florida, metal beverage packaging, Americas, facilities
and related voluntary separation programs.
Other items in the third quarter and first nine months included charges of
$1.7 million ($1.4 million after tax) and $5.5 million ($4.3 million after
tax) for headcount reductions and the relocation of the company's European
headquarters from Germany to Switzerland, as well as additional tax expense of
$2.0 million and $5.9 million, respectively, related to this relocation. The
second quarter and first nine months also included a charge of $5.9 million
($3.6 million after tax) to migrate certain employees from a multi-employer
defined benefit pension plan to a Ball-sponsored defined benefit pension plan.
Additionally, the first six months included income of $3.5 million ($2.1
million after tax) related to the reimbursement of funds paid in 2012 for the
settlement of certain Canadian defined benefit pension liabilities of
previously closed facilities.
During the second quarter, Ball issued $1 billion of 4.00 percent senior notes
due in November 2023 and tendered for the redemption of $375 million of 7.125
percent senior notes originally due in September 2016. The redemption of the
bonds and the renegotiation of Ball's bank credit facilities in June resulted
in a charge of $26.9 million ($16.3 million after tax) for the call premium
and the write off of unamortized financing costs and discounts.
Other costs incurred for business consolidation and other activities were
insignificant to the quarter.
2012
In August 2012, Ball announced plans to close its Columbus, Ohio, beverage can
manufacturing facility and its Gainesville, Florida, end facility in order to
consolidate the company's 12-ounce beverage can and end production capacity to
meet changing market demand. In connection with the closures, the company
recorded initial charges of $31.3 million ($19.0 million after tax) in the
third quarter.
The third quarter and first nine months of 2012 included charges of $4.2
million ($3.0 million after tax) and $9.6 million ($6.8 million after tax),
respectively, as well as $1.3 million of additional tax expense, in connection
with the relocation of the company's European headquarters from Germany to
Switzerland.
The third quarter and first nine months of 2012 also included net charges of
$1.3 million ($0.9 million after tax) and $3.1 million ($2.0 million after
tax), respectively, for ongoing costs related to previously closed facilities
and other insignificant costs.
During the first quarter, Ball issued $750 million of 5.00 percent senior
notes and tendered for the redemption of $450 million of 6.625 percent senior
notes originally due in March 2018. The redemption of the bonds resulted in a
charge of $15.1 million ($9.2 million after tax) for the call premium and the
write off of unamortized financing costs and premiums.



Notes to the Condensed Financial Statements (Third Quarter 2013)
2. Significant Business Consolidation Activities and Other Noncomparable Items
(continued)
A summary of the effects of the above transactions on after-tax
earnings is as follows:
                                        Three Months Ended  Nine Months Ended
                                        September 30,       September 30,
  ($ in millions, except per share      2013      2012      2013      2012
  amounts)
  Net earnings attributable to Ball     $ 115.2   $ 115.1   $ 282.3   $ 342.9
  Corporation, as reported
  Discontinued operations, net of tax   (0.3)     2.2       (0.4)     2.9
  Business consolidation and other      31.5      24.2      63.8      29.1
  activities, net of tax
  Debt refinancing costs, net of tax    0.8       -         17.1      9.2
   Net earnings attributable to Ball                              
  Corporation before above transactions
  (Comparable Earnings)                 $ 147.2   $ 141.5   $ 362.8   $ 384.1
   Per diluted share before above      $  1.00  $  0.90  $  2.42  $  2.42
  transactions
A summary of the effects of the above transactions on earnings before interest
and taxes is as follows:
                                        Three Months Ended  Nine Months Ended
                                        September 30,       September 30,
  ($ in millions)                       2013      2012      2013      2012
  Earnings before interest and taxes,  $ 211.6   $ 218.6   $ 558.1   $ 638.2
  as reported
  Business consolidation and other     43.8      36.8      89.1      44.0
  activities
   EBIT before above transactions     $ 255.4   $ 255.4   $ 647.2   $ 682.2
  (Comparable EBIT)



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: Investor Contact: Ann T. Scott, 303-460-3537, ascott@ball.com, or
Media Contact: Renee Robinson, 303-460-2476, rarobins@ball.com