) have gained 1.4% since its announcement of the closure of the
Danville, Ill., steel aerosol packaging manufacturing plant in
North America. The plant will cease production in the second half
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The Danville plant produces three-piece welded aerosol cans and
ends for household products' customers. Ball Corp. will redeploy
the assets to other existing facilities for continuing supply to
The estimated after-tax charge for the closure is $7 million, the
majority of which will be recorded during the fourth quarter of
2013. As per company policies and the effects of bargaining
process, Ball Corp. will provide outplacement services, severance
pay and other benefits to 47 employees. They will also be able to
apply for other open positions in the company.
Ball Corp., which belongs to the containers and packaging
industry along with
Crown Holdings Inc.
EveryWare Global, Inc.
), reported third-quarter 2013 adjusted earnings of $1.00 per
share, up 11% year over year. The results beat the Zacks
Consensus Estimate of 93 cents.
Operating earnings for the Metal Beverage Packaging, Americas
& Asia segment decreased 5% year over year to $134.8 million,
affected by ceased production of 12-ounce beverage containers in
the North American facility. However, the company expects the
segment to benefit from the Alagoinhas plant's second production
line, which is on track.
In addition, product launches, expansion into emerging markets
and strong backlog in the aerospace and technologies segment will
also drive growth. However, uncertainty in the global economic
scenario remains a headwind.
Broomfield, Colo.-based Ball Corp. is a manufacturer of metal and
plastic packaging, primarily for beverages and food. It also
supplies aerospace and other technologies and services to
government and commercial customers.
Ball Corp. currently holds a short-term Zacks Rank #3 (Hold).