) intends to expand in Southeast Asia by building a one-line
beverage can manufacturing plant in Myanmar. The plant, located in
the Yangon area, will complement Ball's existing operations in
Ball Corporation's previous expansion in the region was a joint
venture plant in Vietnam, which began production in 2012. The new
plant is required to supply beverage containers to Coca-Cola Pinya
Beverages, a joint venture of
The Coca-Cola Co.
) as well as other local, regional and multi-national customers.
The Myanmar plant will help the company solidify its presence in
this high-potential market in exchange for a relatively small
The beverage can plant, which is expected to come on-line in
mid-2015, will help the company capitalize on the growing demand
for beverage containers in Southeast Asia. Furthermore, after a
span of more than 60 years, Coca-Cola started bottling from a plant
in Myanmar in 2013 after receiving an investment permit under
Myanmar's new Foreign Investment Law. Coca-Cola intends to invest
$200 million over the next 5 years in the region which holds
immense opportunity for Ball Corporation.
Ball reported first-quarter 2014 adjusted earnings of 81 cents per
share, which outperformed the Zacks Consensus Estimate of 68 cents.
Moreover, the reported figure surged 40% from the year-ago quarter,
aided by global packaging volume growth and manufacturing
efficiencies. The company has maintained its long-term diluted
earnings per share growth goal of 10-15%.
Ball will continue to benefit from product launches and expansion
in emerging markets. Moreover, the company believes that there is
growth potential in many of its segments. Metal beverage packaging,
Americas & Asia will benefit from the Alagoinhas plant's third
production line in Brazil, which is on track. This increased
capacity will help the company to capitalize on the increased
demand spurred by the upcoming soccer World Cup in Brazil.
In December, Ball acquired Envases del Plata S.A. de C.V., a
leading producer of extruded aluminium aerosol packaging in Mexico.
Demand for extruded aluminum packaging for personal care products
continues to increase, thus providing new opportunities for Ball's
growing business. Ball has also initiated cost cutting measures in
Europe, the benefits of which are expected to be realized in 2014
Ball Corporation retains a short-term Zacks Rank #3 (Hold). Some
better-ranked stocks in the same sector include
Crown Holdings Inc.
Sealed Air Corp.
), both of which carry a Zacks Rank #2 (Buy).
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