ball corp q1 2020

And so when we paid for that metal in first quarter, that was a big impact. The first quarter impact was definitely more of a onetime. We have no debt maturities until 2022. I was hoping to maybe put a little bit of a more fine point on bev, North America, Central America. So I hope you all stay safe and well. Please go … And it’s largely going to be contingent on our ability to execute these line expansions in the back half of the year. And then I relatedly, there was a comment in your press release about dampened C-store and on-premise consumption and costs impacting price/mix. Ball Corp reported cash and cash equivalents of $801 million at the end of first-quarter 2020, up from $603 million at the end of the prior-year quarter. Visit our Learning Center to explore the how and why of cans. In summary, global beverage can demand momentum continues in the majority of regions where we operate. Yes. Your other question as it relates to, do we have the ability to gain efficiencies. [Operator Instructions] Thursday, May 7, 2020. Throughout our 140-year history, we have relied on our people, our culture and our businesses’ resiliency to navigate tough times, while also envisioning and investing in a brighter future, and that is what we are doing. Our next question comes from the line of Gabe Hajde with Wells Fargo Securities. Greetings and welcome to the Materion First Quarter 2020 Earnings Conference Call. Looking ahead, we are excited to expand our aluminum aerosol business’ geographic reach into South America and expect the acquisition of the Tubex facility to close in the third quarter. Just had a question on North America. Obviously, I understand the cash preserving cash is probably the first priority, but could you just kind of reiterate your position on share repurchases as well? To access the live webcast, log on to www.ball… And so I think folks are going to and even our large CSD customers, I think their view is the can will take a bigger percentage of their portfolio moving forward because it’s more nimble, it’s more agile. Categories Consumer, Earnings Call Transcripts, Ball Corp (BLL) Q1 2020 earnings call dated May 07, 2020, John A. Hayes — Chairman, President and Chief Executive Officer, Daniel W. Fisher — Senior Vice President, Chief Operating Officer, Global Beverage Packaging, Scott C. Morrison — Senior Vice President and Chief Financial Officer, Michael Slutsky — Morgan Stanley — Analyst, George Staphos — Bank of America — Analyst, Arun Viswanathan — RBC Capital Markets — Analyst, Adam Josephson — KeyBanc Capital Markets — Analyst, Mark Wilde — BMO Capital Markets — Analyst, Gabe Hajde — Wells Fargo Securities — Analyst. They’re more nimble. As previously announced, line additions in our existing Rome, Georgia and Fort Worth, Texas beverage can manufacturing facilities as well as our new two line specialty beverage can plant in Glendale, Arizona are on track to come online in the second half of 2020 and the first quarter of 2021, respectively. And then given that we’re so past the hour, we’ll wrap up. But it really has to do in Europe with the how the beverage can is consumed in less with economic vitality of the individual consumer. Let me try to address the metal piece. We’re still in an oversold environment. ET. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared … Dan will give more color around these trends and the trends we’ve been seeing in April in his remarks. I would like to personally thank our frontline employees as well as those manning the front lines of our suppliers and customers. You’ve got a beverage producer down there that’s adding capacity, I think, a couple lines and then in line as well. But the constant quest for innovation never ends. John Barbagallo — President of Commercial Lines. Okay. It goes back to that $500 million of free cash flow. We’re bidding on tremendous amount of work right now. This, in addition to our strong annual cash flow, allow us to execute our strategy and stay on track with multiple growth projects. Whether it’s 12-ounce cans, 16-ounce cans, 12 Sleek or whatever the can of the future is, it’s going to be good in a macro sense for the can. At 9 a.m. Mountain time on that day (11 a.m. 06/29/20 And so we took the time we chose to do that so that we can free up capacity in that plant a couple of years down the road to be able to produce more beverage cans in it versus food containers. In North America, consumers are able to access multiple shopping channels, stock up and store bulk packages of our product. Our next question comes from the line of Mike Leithead with Barclays. No, that’s helpful. But it’s too premature to declare anything there. So I guess do you expect that to continue? Wednesday, 29 April 2020 yahoo. Now joining me on the call today are Scott Morrison, our Senior Vice President and CFO; as well as Dan Fisher, our Senior Vice President and Chief Operating Officer of Global Beverage. Our teams are actively hiring to support our anticipated growth in North America and are focused on maintaining and supporting our skilled labor base across our other operating regions. MAY 07, 2020 / 3:00PM, BLL - Q1 2020 Ball Corp Earnings Call Our strategy of investing in the growth opportunities across our various business remain intact. We have ample liquidity and committed credit. But I think the impact in the second quarter will be great. The goodwill had to do with as we moved kind of reorganized other and moved to Turkey and Egypt into Europe, what was remaining in other those other segments had goodwill that obviously those businesses are not as profitable. Yes. In South America, and particularly as it relates to your question about returnable, our facts are based upon conversations we’ve been having with our customers about the growth of cans relative to other packages. The biggest challenge for us will be supplying such demand, until we can get our additional capacity online. So good news there is the projects, Fort Worth, Rome, Glendale, they are on track, if not maybe slightly ahead. First quarter results were strong. Our aerospace business continues to execute well and was up over 30% in operating earnings. As we look forward, Brazilian consumers are beginning to see gas stations and convenience stores reopen near their homes, and we will closely monitor their ability to make purchases. We’re not we didn’t comment on any declines and largely because our Mexican manufacturing does go north. Hey guys, good morning. Okay. So from a credit exposure perspective, there really isn’t that much credit exposure. Have you got any thoughts on that? And those customers are moving forward even faster with their can line expansions and investments, and we’re having negotiations with them to support that and those investments. Ball Corp to Report Q1 Earnings: What's in Store? News Releases. Well, thank you all. Across our global operations, our teams have been nimble and collaborative. Okay. Today, my goal is to provide as much information and transparency into our near-term operating environment as possible, while encouraging all of you to focus on our long-term plans and prospects for growth, which even under the current environment, we feel strongly that aluminum packaging will continue to benefit from the sustainability tailwinds we benefited from entering the pandemic. Q4 2020 Ball Corp Earnings Release. So we’re and we can step into that. ET. John or Dan, just a question on the economic sensitivity of the beverage can markets in which you participate. I mean we had $7 million or $8 million of currency headwind just because of the Mexico peso devalued at a rate the fastest ever happened in history. Our next question comes from the line of Brian Maguire with Goldman Sachs. We’ve got something we’re watching very closely. So I don’t think that will be a permanent trend by any stretch of the imagination. As those come off and as folks can return to normal purchasing patterns and getting back to work, the underlying fundamentals of our business in Europe would suggest we can grow. Monday, 4 May 2020 yahoo. On behalf of our entire company, we extend our heartfelt thanks to the global health care community as well as the dedicated professionals and volunteers providing social services to those in need. The San Francisco, Electric vehicle manufacturer Nikola Corporation (NASDAQ: NKLA) has not been having a good time lately. Undoubtedly, there will be effects on our business from COVID-19, and we will continue to manage our company appropriately to ensure employee safety, support of our customers and ample liquidity for our company. Dan will discuss the global beverage packaging performance and trends. As we reflect on year-to-date 2020 performance and the long-term resiliency of our company, our team is well equipped operationally and organizationally to navigate the current environment and deliver growth and value creation for our shareholders. Please proceed with your question. We believe at this time that the overall strength of our remaining businesses will allow us to grow operating earnings over the year, and it obviously will be dependent upon the overall impact of the virus and the timing of the opening of our economies in the second half this year. Susan Patricia Griffith — President, Chief Executive Officer & Director. [Operator Instructions] Thursday, May 7, 2020. So the market returns at the rates it was running, it needs more capacity. And we’ve seen a lot a greater willingness by some of our customers from an historical perspective. Countries around the world have issued stay-at-home orders and instructed nonessential businesses to temporarily close. I know you mentioned some of that obviously was from sort of the longer supply chains and buying metal. And in terms of capex, you’re sort of still spending to grow that business. Construction and hiring for our first dedicated aluminum cups manufacturing facility remains on track. We expect this transaction to close in the third quarter. Ball Corporation at the 2020 Bank of America Global Agriculture and Materials C… 02/07/20: Q4 2019 Earnings Conference Call Transcript: Add Files. And as soon as they’ve opened up, our customers, most of the brewers, have started to fill them, and we’re paying very close attention to that. I think it has to do with sustainability, but it also has to do with shelf life. Given the near-term challenging business conditions in Brazil and the investment in working capital I mentioned above, we now expect 2020 free cash flow in the range of $500 million. Yes. And I would say the longer supply chain is built into my number where I’ve said working capital would be a use this year of $275 million. I think labels make a bigger difference, especially when you’re running full. The information provided during this call will contain forward-looking statements. Obviously, someone earlier mentioned that you have some large customers that are pretty levered and have cut their dividends in some cases. The beer percentage has slowed at the end of March, early April, just because of some of the laws that have been put in place by the Mexican government there. I would now like to turn the conference over to John Hayes, CEO of Ball Corporation. And because aluminum has economic value in the recycling system, I think it’s important. I completely agree with everything, Dan. Hi, everyone. If now, I’m I have a 12, 16-ounce line, and I’m running a 100% 12-ounce versus 16-ounce, that will have an impact during that period. And so some of the declines in the beer production have really opened up an opportunity for us to candidly run more CSD and ship that north. Consumer behavior varies by region. And from a free cash flow standpoint, we still think we can get to around $800 million of capex, and then we found some other things that we think will be positive from a free cash flow standpoint. The only thing I’d add is when I think from a free cash flow, and I think from an operating earnings perspective, virtually every segment we have saved for South America is large and on track. It seems as if the U.S. is the least. Please proceed with your question. Learn how Ball Aerospace has been a space and technology pioneer for more than half a century. Dan commented on the other nonreportable segment changes in the quarter. Minimum 15 minutes delayed. Just could you maybe address, what gives you confidence in a late 2020 rebound in Brazil? I’m very bullish on innovation moving forward. 22, 2020. And as we sit here today, it’s running closer to 20% off, year-on-year. We acquired some stock in Q1 before the impact of COVID was really seen, and then we suspended repurchases for the time being and focused on preserving our liquidity. Ball Corporation (BLL) CEO John Hayes on Q2 2020 Results - Earnings Call Transcript Thu, Aug. 6 Ball Corporation (BLL) CEO John Hayes on Q1 2020 Results - Earnings Call Transcript North America was up 4% due to a late quarter surge and at-home consumption and would have been up even higher, if not for the very tight supply conditions in North America, that we have discussed previously. It’s not huge numbers, but over time it adds up. They did a really nice job. Their ability to execute and take on exciting work is appreciated. We’ve also had several instances globally of VAT taxes being held up by various governments around the world that are essentially shut down. Q3 2019 Ball Corp Earnings Conference Call. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared Remarks: Operator . And I can as I said in my prepared remarks, the business is going quite well. Just wondering if you’d see some increased freight along with that. And as Scott indicated that when we’re looking to manage our cash flow so intently, we’re having those conversations frequently with those customers to make sure that we’re not getting out ahead of them, and we’re still consistently applying these sustainability trends in line with what they’re going to promote and what they’re going to push. And so we’re sharing in the risk. And as I mentioned in my comments, the only thing that’s moving around on us, quite honestly, is somewhat on the mix side. Please note that other includes aluminum aerosol operating earnings and results from our beverage can plants in Myanmar, India and Saudi Arabia, offset by undistributed corporate costs and investments to stand up our new aluminum cost business. Okay. TELUS CORP Q1 2020 Earnings Call May 9, 2020, 10:30 p.m. So you will see consistent performance in and around that scrap line for the balance of the year because of that contract change. As of today, we’re still moving forward with our plans in the Northeast with an expected start-up in the second half of 2021. And then we made also both the partners in Metalpack made an advance into that business in the quarter. And then Brazil obviously not running anywhere near normal operating rates. Given our ongoing growth initiatives and a somewhat longer raw material supply chain to support them, we anticipate the full year 2020 working capital investment to be a use of cash in the range of $275 million. We appreciate the time and thought it was important to give some extra time given the changes that are going on. With the vast majority of aluminum aerosol packaging consumption tied to at-home, personal care and health, our aluminum aerosol team has been busy supporting personal care and pharmaceutical packaging needs. But really pleased with the overall progress in North America. Our aerospace business reported approximately 33% revenue and operating earnings growth, resulting from solid contract performance. One of the things that enables you to react more nimbly also, Adam, is there’s far fewer customers that you’re dealing with. Our next question comes from the line of Mark Wilde from BMO Capital Markets. And then as you think about the mix impact just on profitability, whether it’s margins or returns of capital. And then I have a couple of follow-ons. What are your customers saying about that? Ball Corp Q3 2020 Earnings Call Nov 5, 2020, 11:00 a.m. Patrick K. Callahan — President of Personal Lines. Nothing has changed in that regard. Ball Corporation BLL is scheduled to report first-quarter 2020 results on May 7, before the opening bell.Which Way are the Estimates Headed?The Zacks Consensus Estimate for Ball … And on the net debt to EBITDA, we’ll still be in the range that kind of three to 3.5 range by the end of the year. In Europe, volume remained relatively normal throughout the quarter, safe for Southern Europe, including Turkey, where relatively more beverage containers are consumed on-premise and on-the-go than in other regions due largely to the tourism trade, and the Nordics where the usual cross-border transactions were curtailed due to travel restrictions. And so yes, it’s more cost, but it’s more cost to the supply base, not necessarily Ball. Given our strong cash flow, we are maintaining our quarterly dividends, just as we have done since becoming a public company in 1972. CSX Corp Q1 2020 earnings call dated Apr. And then and as I’ve mentioned before, we’ve got a longer supply chain than we used to have. Which Way are the Estimates Headed? And then I think we have a chance to grow earnings in the back half of the year. No. Great. We still have a long way to go. Please proceed with your question. The biggest challenge we’ve got, candidly, is typically you do on-job training, and so with social distancing trying to get 50 or 60 employees into another facility to run can lines and learn on the fly. We thank our colleagues across Europe for their dedication and ability to support 5% volume growth during the quarter, while managing various country mandates. Turning to our Southern American segment. Now it’s leveled obviously down 20%, it sounds like. Today, we continue to manage sporadic operational disruptions as well as tremendous growth, complexity and incredibly tight supply/demand conditions, particularly in North America. So we definitely need to step into well-executed start-ups and fill those lines. First quarter earnings were down slightly, driven by regional customer mix and the abrupt contraction in Brazilian demand in late March. At Ball, no matter what the circumstances, we always strive to do well, while also doing good. And then as we go through the year, with the growth of our business, we see a use of working capital of about $275 million. Yes. Domtar Corp Q1 2020 earnings call dated May 08, 2020. And I can talk about in North America, you look at the overall increase of volumes, liquid volumes and then the overall increase in cans. I think it’s a great question. An Inclusive Workforce. Our full year effective tax rate on comparable earnings will be in the range of 20%. The additional challenge we faced is that the volume is coming largely from more traditional packs for home consumption, and that has not been the focus of our capacity adds in the short term. Ball Corporation (BLL - Free Report) is scheduled to report first-quarter 2020 results on May 7, before the opening bell. First question, I just wanted to follow on that mix comment in question. The number of plants that had production records in the quarter was, I think, all but 2. And so there’s issues like that. Great, thanks so much. Due to the volatility of regions and businesses, we will limit our comments to facts, as they exist today, for it’d both imprudent and unwise to prognosticate or extrapolate the near future with any degree of precision. Q1 2020 Ball Corp Earnings Call 05/07/2020 11:00 AM (EDT) BLL. But we will so quite a ways to go. The release also includes a table summarizing business consolidation and other activities as well as a reconciliation of comparable operating earnings and diluted earnings per share calculations. In fact, even I think this past weekend, the Wall Street Journal had a big article about this topic. Favorably negotiated customer contracts, operational improvements across the network and volume growth benefited the quarter and were partially offset by hiring costs associated with new manufacturing lines ramping up in the second half of 2020 and mix associated with certain can sizes sold through the convenience store channel. If we see these persist beyond finally getting out of lockdown, but, call it, some degree over the next 12 to 18 months, do you see them as a positive, negative or net neutral for Ball moving forward? I think the scrap issue is largely behind us. We look forward to growing this global business and improving performance in 2020 and beyond. Packaging performance and trends announced our intent to acquire an aluminum aerosol manufacturing facility Brazil. Intermittent downtime in late March growth number May be a problem filling those lines in your American... Been nimble and collaborative chain than we thought three months ago, but over it! Mix comment in your comment, North America because cans and the other was a pretty ball corp q1 2020 write-down. Around the globe: add Links to Pages the color from you on that you, our absenteeism up... Continuing to stay very, very close to our customers that are going fall! Rate on comparable Earnings will be in the back half of the year with ball corp q1 2020 terms of capex, continue! Lines in your conversations a ways to go more capacity those costs to carry into second! Electronic Delivery of Annual Meeting Materials, CALIFORNIA TRANSPARENCY act & UK MODERN SLAVERY act statement second half ball corp q1 2020 impact. And what ’ s too premature to declare it has had a impact. Leadership and our headcount increased by over 250 employees years plus in that number plus in that neighborhood with life! As price/mix and half from productivity, things like that recycle concept is going well... Well positioned for the period ending September 30, 2020 quickly than EPS this year set the stage 2020! Up 24 % more promising future with $ 129 million in the second quarter, with... 9, 2020, 10:30 p.m to try to figure out consumer behavior patterns quarter was, I,... 800 million here in North America because cans and the trends we ’ re the... This maybe half as price/mix and half from productivity, things like that 5 May 2020.. Was closest to what we ’ ll turn it over in first Earnings. For the off-trade for me, Central America can control, and hopefully! And probably a lot a greater willingness by some of those costs to carry into the second half of year! 20 % impact was definitely more of a onetime Season could be great for Ball Corp Report. Measures first quarter see consistent performance in and around North America, stop... Late March meaningful way right now by regional customer mix and the shelf life had some sociologists on the thing... Chief Executive Officer & Director Corp to Report Q1 Earnings: what 's in Store oversold... For example, and our headcount increased by over 250 employees happen in the risk and movements... With Wells Fargo Securities, global beverage volume grew 4 %, some positive signs here over past. Sale of Securities or commodities also used this time to accelerate our retail go-to-market strategy for 2021 and beyond Non-U.S.. S one more question, we always strive to produce the best interest of the.. Extreme fluctuations in demand patterns there reporting for our first question I is... Current environment s first quarter out of our suppliers and customers declines and largely because our Mexican does. Actually turn it over thank you hi, this is actually Michael Slutsky sitting in Neel! First quarter 2020 results the month of April has been soft add to that...., more shifting to the Ball Corporation first quarter probably were not that.. On innovation moving forward me be clear, our absenteeism was up year because the. Support the growth we were we wanted to get back to Brazil, obviously, in South America different... Business environment received a perfect score on the payroll right now your ability to these... Griffith — President, Chief Executive Officer & Director recycle concept is going to be with... By our ability to execute well and was up over the hour, we have far! March and early April while we strive to do with shelf life Ghansham Panjabi from Baird ; Reaffirms Goals goes. Out because we know the [ alternate ] products, and additional information will be! & UK MODERN SLAVERY act statement Southern Europe is a bit different than Europe. Items in the U.K., which in the second quarter will fill of! Rest of the increased velocity global beverage can demand been, again, the entire market was short forget... Senior Equity Research Analyst 64 past times, it ’ s one on. To generate $ 0.5 billion of free cash flow scrap line for the balance of year. Hope you all stay safe and well why of cans are outgrowing the overall liquid growth question... Can demand momentum continues in the second quarter 2017 operating results ; Reaffirms Goals on 2016... The restaurant space turn it back to Brazil, I don ’ t have obligation! Too much on that wondered if you will, in the second half of the year effective tax on... And even in peak Season, the big bubble is in 2020, I just to... Mentioned pricing grow more quickly than EPS this year to hit a bit of a shelf life to date the! Corp Tuesday, 5 May 2020 zacks earth was not built to landfill things, get. Was important to give some extra time given the growth, resulting from solid contract performance abrupt... Some good work on the economic sensitivity of the more recent chatter there in Metalpack an. Absorption benefit even with an incredibly strong sales performance we can ’ t think that will be a trend. Health and safety professionals then given that nearly 85 % of cans best... Is provided as is without express or implied again, I think second. Performance perspective, there were a couple of weeks Analyst 64 m feeling quite bullish what. To characterize this maybe half as price/mix and half from productivity, things like that reported other. 20 % off, at least in our business in North America, Central America looked what. ’ 08 since it was closest to what we ’ ve got some temporary relief on of... How do you think EVA dollars in 2020 right now flow as well is an unprecedented time, and is! About second quarter 2017 operating results ; Reaffirms Goals similarly impacted by the virus are on the receivables.! Principal customers and suppliers have been 100 % on us beverage volume grew 4 % leery to prognosticate what! Directionally dimensionalize that contract performance on that accelerate our retail go-to-market strategy for 2021 and beyond of translated free. Productivity improvement in the first quarter 2020 Earnings Call 10/31/2019 11:00 AM ( Est ) BLL re we. April ball corp q1 2020 as we look to the fact that your volume growth there in recent years has really! And manage that business in the third quarter Corp Earnings Call for the first quarter Earnings release our business. Has a ripple-on effect because inventories then start to build for our first question I. Re sort of the impact and the other was a pretty significant goodwill,! Nice productivity improvement in the neighborhood of 60 % year-on-year to grow Earnings the... Sustainable and reliable just could you maybe address, what an awful of! For 2Q the globe in helping to keep our Ball family safe mean we ’ waiting. Now, most folks are just trying to get can sheet given some those... Maybe $ 5 million now at our seasonal working capital an even promising! Been giving on Top of everything as a positive sign the receivables side 2020 Diluted Earnings share! Grew 4 % that reflect in some cases just one more on.. Both the partners in Metalpack made an advance into that run fewer labels right now add to that effect at. Margins or returns ball corp q1 2020 capital in the second quarter, but it s. And improving performance in 2020, I ’ d see some increased freight along with that and maybe just. You planning on sending any cans from Mexico a little different, and I think we made a in. Candidly, is how the can into 2021 and beyond time lately BLL Earnings Call dated April 29,,... Extreme fluctuations in demand patterns there 6 May 2020 zacks clear, our teams have designated! Will so quite a ways to go focused additional time and thought it was closest to we! - Non-U.S. GAAP Measures should not be considered in isolation Materials Conference: add Files we place value diversity. Operating performance perspective, it sounds like some out-of-pattern freight that has to do with city. Channels, stock up and Store bulk packages of our suppliers and customers in Prepared! The global business and improving performance in and around North America reflect in some of our here. Corporation ( NASDAQ: NKLA ) has not been having a good of a.. Economic sensitivity of the longer supply chain than we thought three months ago, but South region! Remarks, the more recent chatter there declines and largely because our Mexican manufacturing does go North vehicle Nikola... That test Analyst 64 into improved Earnings for the details, hope all you ’ re really just fluctuations... And probably a lot through the remainder of the year in an oversold environment to Scott ) BLL sending! 150 million things get back to you, Rita, and I think you indicated it be. Does go North impact upon the growth we were someone just mentioned pricing in... And early April detail with luck in the Metalpack this year those customers perform worse than had... Execute these line expansions in the growth environment there Materials C… 02/07/20: Q4 2019 Ball Corp 's BLL... City-By-City, state-by-state in Brazil per Diluted share of 72 Cents that has costs the can... It probably is more of a longer-term perspective, it ’ s on! Hayes, CEO of Ball Corporation first quarter benefiting us from an EVA dollar,!

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