Ball Corporation
(
BLL
), the manufacturer of high quality packaging, has been selected to
supply three-piece, flat top beer cans to Churchkey Can Company.
The cans are made from recyclable steel that sufficiently
protect the beer both from light and oxygen.
Churchkey, the producer of Northwest-brewed Pilsner style craft
beer, decided to bring back the flat top beer cans of the past,
invented in the mid 1930s. At that time metal openers called church
keys were used to open the beer cans. The cans were finally pulled
out of market in the 1960s.
The steel cans made by Ball Corp. have the highest recycling
rates of 66% and can be shipped easily with minimum fuel to the
brewery and retail outlets. Steel cans that chill faster than
bottles can be carried anywhere without the fear of spilling the
content.
In the recently reported quarter, Ball Corp's. adjusted earnings
were 48 cents per share, down 10% from the year ago quarter of 53
cents; missing the Zacks Consensus Estimate of 54 cents per
share. Total sales increased 3% year over year to $2.1
billion and were in line with the Zacks Consensus Estimate.
The weak performance in the quarter was attributable to weaker
beverage can volumes in North America and Europe, in addition to
six fewer accounting days. These negatives were somewhat offset by
strong operating profit and continued growth in specialty
packages.
Ball Corp. hopes to deliver strong performance in the coming
quarters by focusing on the Drive for 10 vision. Further, it
expects that the investment made in 2011 and Drive for 10 vision
will help in generating 10%-15% earnings per share growth in 2012
and beyond that. The Zacks Consensus Estimate for 2012 is
pegged at $3.08 per share.
Ball Corp. is all set to expand its global metal beverage can
business. Accordingly, in 2011, it acquired a 40% interest in a
beverage can joint venture plant at Qingdao, China apart from
inking a deal with Thai Beverage Can Limited to build a
manufacturing plant in Vietnam.
In addition, Ball Corp. has planned to build another
manufacturing plant in Alagoinhas, Brazil, in collaboration with
its Brazilian joint venture partner in Brazil. Besides, it has also
completed the acquisition of a leading supplier of extruded
aluminum aerosol cans and bottles in Europe, Aerocan S.A.S.
Currently, the stock retains a Zacks #3 Rank, implying a
short-term "Hold" rating. Ball Corp. competes with the companies
like
Crown Holdings Inc.
(
CCK
),
Rexam Plc
(
REXMY
) and
Silgan Holdings Inc.
(
SLGN
).
Based in Broomfield, Colorado, Ball Corp. is a manufacturer of
metal packaging, primarily for beverages and foods. It also
supplies aerospace and other technologies and services to
government and commercial customers.
BALL CORP (
BLL
): Free Stock Analysis Report
CROWN HLDGS INC (
CCK
): Free Stock Analysis Report
REXAM PLC-ADR (
REXMY
): Free Stock Analysis Report
SILGAN HOLDINGS (
SLGN
): Free Stock Analysis Report
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