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Ball Corporation Is Selling Its Specialty Tin Facility

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Price movement

Ball Corporation (BLL) has a market cap of $13.8 billion. It fell 0.38% to close at $79.04 per share on September 26. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.85%, -0.81%, and 9.3%, respectively, on the same day. BLL is trading 0.07% above its 20-day moving average, 2.8% above its 50-day moving average, and 9.9% 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 Corporation. The ETF tracks the CRSP US Mid-Cap Index, a diversified index of midcap US companies. The YTD price movement of VO was 7.7% on September 26.

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

  • Boeing (BA) — $81.5 billion
  • Alcoa (AA) — $12.7 billion
  • Crown Holdings (CCK) — $7.5 billion

Latest news on Ball

In a press release on September 26, Ball reported, “Ball Corporation (BLL) today announced an agreement to sell its specialty tin manufacturing facility in Baltimore, Maryland, to US-based Independent Can Company for approximately $25 million.”

It added, “The transaction is expected to close during the fourth quarter of 2016 and the proceeds are subject to customary closing adjustments.”

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Performance of Ball Corporation in 2Q16

Ball Corporation reported 2Q16 net sales of $2.0 billion, a fall of 9.1% compared to net sales of $2.2 billion in 2Q15. Sales of metal beverage packaging in the Americas and Asia, metal beverage packaging in Europe, food and aerosol packaging, and aerospace fell 7.0%, 0.42%, 10.2%, and 16.1%, respectively, in 2Q16 compared to 2Q15. It reported business consolidation and other activities expense of $16.0 million in 2Q16 compared to $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, in 2Q16 compared to the prior year period.

The company reported business consolidation and other activities expense of $16.0 million in 2Q16 compared to $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 2.2% and 2.6%, respectively, in 2Q16 compared to the prior year period.

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

Ball’s net receivables and net inventories rose 59.3% and 59.6%, respectively, in 2Q16 compared to 2Q15. It reported cash and cash equivalents of $6.4 billion in 2Q16 compared to $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 to 1.1x and 2.2x, respectively, in 2Q15.

The company has projected free cash flow in the range of $750 million to $850 million for 2017.

In the next part of this series, we’ll take a look at Drew Industries (DW).

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