Ball Corporation reported adjusted earnings of $1.13 per share,
improved 33% year over year in the second quarter of 2014 and
surpassed the Zacks Consensus Estimate of $1.02. The company
reaffirmed free cash flow range of $550 million for full-year 2014
and maintained its long-term diluted earnings per share growth goal
of 10% 15%. Ball Corporation will continue to benefit from product
launches and expansion in the emerging markets. However,
uncertainty in the global economic scenario will act as headwind in
the near term. Moreover, manufacturing challenges and tough volume
comparisons remain the areas of concern in the second half of 2014.
Thus, we are reaffirming our Neutral recommendation on Ball
Corporation with a target price of $64.
Headquartered in Broomfield, Colo., Ball Corporation is a
manufacturer of metal and plastic packaging, primarily for
beverages and foods. It also supplies aerospace and other
technologies and services to government and commercial customers.
The company employs around 15,000 people worldwide and organizes
its businesses in 4 segments:
The Metal Beverage Packaging, Americas & Asia segment (49%
of total revenue in 2013) consists of operations located in the
U.S., Canada, Brazil, and People's Republic of China (PRC). In the
U.S., Canada and Brazil, the company manufactures metal container
products used primarily in beverage packaging. Ball's Chinese
operations manufacture metal beverage containers as well as
aluminum containers and ends.
The Metal Beverage Packaging, Europe segment (22%) deals with
the company's operations in Europe. The segment supplies two-piece
metal beverage containers and ends for producers of carbonated soft
drinks, beer, energy drinks and other beverages as well as extruded
aluminum aerosol containers and aluminum slugs.
The Metal Food & Household Products Packaging, Americas
segment (18%) is concerned with operations located in the U.S. and
Canada, which manufacture metal container products used primarily
in food packaging.
The Aerospace and Technologies segment (11%) includes national
defense solutions, advanced technologies and products as well as
civil and operational space businesses.
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