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How Did Ball Perform in 2Q16?

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Aug. 8 2016, Published 3:52 p.m. ET

Price movement

Ball (BLL) has a market cap of $13.7 billion. It rose by 12.0% to close at $78.51 per share on August 4, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 10.7%, 11.6%, and 8.4%, respectively, on the same day. BLL is trading 10.9% above its 20-day moving average, 9.6% above its 50-day moving average, and 12.4% above its 200-day moving average.

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Related ETF and peers

The Vanguard Mid-Cap ETF (VO) invests 0.33% of its holdings in Ball. The ETF tracks the CRSP US Mid-Cap Index, a diversified index of midcap US companies. The YTD price movement of VO was 7.3% on August 4.

The market caps of Ball’s competitors are as follows:

  • Boeing (BA) — $81.5 billion
  • Alcoa (AA) — $13.8 billion
  • Crown Holdings (CCK) — $7.5 billion

Performance of Ball Corporation in 2Q16

Ball Corporation reported 2Q16 net sales of $2.0 billion, a fall of 9.1% from the net sales of $2.2 billion in 2Q15. Sales of metal beverage packaging of Americas & Asia, metal beverage packaging of Europe, food & aerosol packaging, and aerospace fell by 7.0%, 0.42%, 10.2% and 16.1%, respectively, between 2Q15 and 2Q16. It reported a business consolidation and other activities expense of $16.0 million in 2Q16, compared with $66.0 million in 2Q15. The company’s cost of sales as a percentage of net sales and EBIT (earnings before interest and taxes) fell by 2.2% and 2.6%, respectively, between 2Q15 and 2Q16.

Its net income and EPS (earnings per share) rose to $369.0 million and $2.54, respectively, in 2Q16, compared with $160.0 million and $1.13, respectively, in 2Q15. It reported adjusted EPS of $1.05 in 2Q16, a rise of 18.0% from 2Q15.

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Ball’s net receivables and net inventories rose by 59.3% and 59.6%, respectively, between 2Q15 and 2Q16. It reported cash and cash equivalents of $6.4 billion in 2Q16, compared with $227.0 million in 2Q15. Its current ratio and long-term debt-to-equity ratio fell to 1.0x and 2.1x, respectively, in 2Q16, compared with 1.1x and 2.2x in 2Q15. The company has projected free cash flow in the range of $750 million to $850 million for 2017.

Ball declares dividend

Ball has declared a cash dividend of $0.13 per share on its common stock. The dividend will be paid on September 15, 2016, to shareholders of record as of September 1, 2016. In the next part of this series, we’ll discuss how WestRock Company performed in 3Q16.

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