Wednesday, July 23, 2014 Last update: 12:33 PM
FreshNews.com - All Company Technology News Since 1996

Ball Reports Improved 2013 Results

Companies mentioned in this article: Ball Corporation

BROOMFIELD, Colo., Jan. 30, 2014 /PRNewswire/ -- Ball Corporation (NYSE: BLL) today reported full-year 2013 net earnings attributable to the corporation of $406.8 million (including after tax charges of $82.8 million, or 55 cents per diluted share for business consolidation costs, discontinued operations, debt refinancing costs and other activities), or $2.73 per diluted share, on sales of $8.5 billion, compared to $403.5 million, or $2.55 per diluted share, on sales of $8.7 billion in 2012. On a comparable basis, Ball's full-year 2013 results were net earnings to the corporation of $489.6 million, or $3.28 per diluted share, compared to $483.0 million, or $3.06 per diluted share, in 2012.

(Logo: http://photos.prnewswire.com/prnh/20130925/LA85786LOGO)

"Though worldwide economic conditions have not changed materially, we have adapted well by effectively managing our asset base, leveraging our customer relationships to capture growth in key markets, and implementing programs to drive efficiencies and improve results," said John A. Hayes, chairman, president and chief executive officer. "Specialty can growth in the Americas, improved cost management in our global packaging operations and solid program execution in our aerospace operations led to results that exceeded our expectations."

Fourth quarter 2013 net earnings attributable to Ball Corporation were $124.5 million, or 85 cents per diluted share, on sales of $2.0 billion, compared to $60.6 million, or 39 cents per diluted share, on sales of $2.1 billion, in the fourth quarter of 2012. On a comparable basis, Ball's fourth quarter results were net earnings of $126.8 million, or 86 cents per diluted share, compared to $98.9 million, or 64 cents per diluted share in the fourth quarter of 2012.

Details of comparable segment earnings for the full year and the fourth quarter can be found in the notes to the unaudited consolidated financial statements that accompany this news release.

Metal Beverage Packaging, Americas & Asia
Metal beverage packaging, Americas and Asia, comparable segment operating earnings were $511.8 million for full-year 2013 on sales of $4.2 billion, compared to $522.5 million in 2012 on sales of $4.5 billion. For the fourth quarter, comparable earnings were $147.3 million on sales of $1.0 billion, compared to $138.0 million on sales of $1.1 billion in 2012.

Continued excellent operating performance and strong demand for specialty packaging continued in the Americas offset by sluggish 12-ounce can demand in North America. During the fourth quarter, the second production line in the Alagoinhas, Brazil, beverage can plant contributed favorably to segment results. In Asia, Ball relocated beverage can and end equipment from the Shenzhen plant to the company's existing Foshan plant to maximize efficiencies during a challenging period of industry overcapacity.

Metal Beverage Packaging, Europe
Metal beverage packaging, Europe, comparable segment results in 2013 were operating earnings of $182.6 million on sales of $1.8 billion, compared to $182.3 million on sales of $1.8 billion in 2012. For the fourth quarter, comparable operating earnings in 2013 were $39.4 million on sales of $427.8 million, compared to $29.6 million on sales of $394.3 million in the fourth quarter of 2012.

Full-year and fourth quarter comparable operating earnings were affected favorably by solid demand for beverage containers across the region and good cost management. Our plans for long-term cost optimization, including the consolidation of the Ratingen, Germany, regional administrative offices, are progressing as planned.

Metal Food & Household Products Packaging
Metal food and household products packaging comparable segment results for 2013 were operating earnings of $177.4 million on sales of $1.6 billion, compared to $167.8 million in 2012 on sales of $1.6 billion. For the fourth quarter of 2013, comparable segment results were operating earnings of $36.8 million on sales of $345.2 million, compared to $36.8 million on sales of $363.2 million in the same period of 2012.

Full-year 2013 results were up due to solid operating performance across all product lines and continued volume growth for global metal aerosol packaging. In an ongoing effort to improve efficiencies, the company ceased operations at its Elgin, Ill., facility and announced the closure of its Danville, Ill., steel aerosol manufacturing plant during the quarter. The company is deploying the manufacturing assets from these plants across the North American system to supply its existing customer base.

Aerospace and Technologies
Aerospace and technologies comparable segment results were operating earnings of $80.1 million on sales of $897.1 million in 2013, compared to $86.6 million on sales of $876.8 million in 2012. For the fourth quarter, earnings were $25.1 million on sales of $222.1 million, compared to $24.2 million on sales of $245.0 million in the fourth quarter of 2012. Contracted backlog at the close of the year was $938 million.

Full-year comparable operating earnings were negatively affected by the U.S. budget sequestration and the subsequent government shutdown. During the quarter, the previously delivered STPSat-3, the Department of Defense Space Test Program's Standard Interface Vehicle (STP-SIV), launched successfully.

Outlook
Ball announced yesterday an increase to its share repurchase authorization enabling the company to repurchase up to a total of 20 million shares of its common stock.

"We anticipate full-year 2014 free cash flow to be in the range of $550 million after capital expenditures of nearly $375 million with the majority of free cash flow being returned to shareholders via share repurchases," said Scott C. Morrison, senior vice president and chief financial officer.

"As we transition into 2014, we are confident in our ability to increase EVA dollar generation and achieve our long-term diluted earnings per share growth goal of 10 to 15 percent," Hayes said.

About Ball Corporation
Ball Corporation supplies innovative, sustainable packaging solutions for beverage, food and household products customers, as well as aerospace and other technologies and services primarily for the U.S. government. Ball Corporation and its subsidiaries employ 14,500 people worldwide and reported 2013 sales of $8.5 billion. For more information, visit www.ball.com, or connect with us on Facebook or Twitter.

Conference Call Details
Ball Corporation (NYSE: BLL) will announce its fourth quarter 2013 earnings on Thursday, Jan. 30, 2014, at 9 a.m. Mountain Time (11 a.m. Eastern). The North American toll-free number for the call is 800-732-5617. International callers should dial 212-231-2939. Please use the following URL for a webcast of the live call:

http://edge.media-server.com/m/p/fa9d8zca/lan/en

For those unable to listen to the live call, a taped replay will be available from 11 a.m. Mountain Time on Jan. 30, 2014, until 11 a.m. Mountain Time on Feb. 6, 2014. To access the replay, call 800-633-8284 (North American callers) or 402-977-9140 (international callers) and use reservation number 21700833. A written transcript of the call will be posted within 48 hours of the call's conclusion to Ball's website at www.ball.com in the investors section under "news and presentations."

Forward-Looking Statements
This release contains "forward-looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates" and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key risks and uncertainties are summarized in filings with the Securities and Exchange Commission, including Exhibit 99 in our Form 10-K, which are available on our website and at www.sec.gov. Factors that might affect: a) our packaging segments include product demand fluctuations; availability/cost of raw materials; competitive packaging, pricing and substitution; changes in climate and weather; crop yields; competitive activity; failure to achieve productivity improvements or cost reductions; mandatory deposit or other restrictive packaging laws; changes in major customer or supplier contracts or loss of a major customer or supplier; political instability and sanctions; and changes in foreign exchange or tax rates; b) our aerospace segment include funding, authorization, availability and returns of government and commercial contracts; and delays, extensions and technical uncertainties affecting segment contracts; c) the company as a whole include those listed plus: changes in senior management; successful or unsuccessful acquisitions and divestitures; regulatory action or issues including tax, environmental, health and workplace safety, including U.S. FDA and other actions or public concerns affecting products filled in our containers, or chemicals or substances used in raw materials or in the manufacturing process; technological developments and innovations; litigation; strikes; labor cost changes; rates of return on assets of the company's defined benefit retirement plans; pension changes; uncertainties surrounding the U.S. government budget, sequestration and debt limit; reduced cash flow; ability to achieve cost-out initiatives; interest rates affecting our debt.

    Condensed Financial Statements (Fourth Quarter 2013)
    ---------------------------------------------------


          Unaudited Condensed Consolidated Statements of Earnings


                                        Three Months
                                           Ended                    Year Ended

                                        December 31,                December 31,
                                        ------------                ------------

     ($
     in
     millions,
     except
     per
     share
     amounts)                           2013           2012           2013           2012
                                        ----           ----           ----           ----


     Net
     sales                          $1,996.8       $2,114.2       $8,468.1       $8,735.7
     -----                          --------       --------       --------       --------


    Costs and expenses

       Cost
       of
       sales
       (excluding
       depreciation
       and
       amortization)                (1,586.1)      (1,729.4)      (6,875.4)      (7,174.0)

       Depreciation
       and
       amortization                    (76.3)         (72.7)        (299.9)        (282.9)

       Selling,
       general
       and
       administrative                 (107.4)        (101.0)        (418.6)        (385.5)

       Business
       consolidation
       and
       other
       activities                       10.3          (58.8)         (78.8)        (102.8)

                                    (1,759.5)      (1,961.9)      (7,672.7)      (7,945.2)
                                    --------       --------       --------       --------


     Earnings
     before
     interest
     and
     taxes                             237.3          152.3          795.4          790.5
     --------                          -----          -----          -----          -----


     Interest
     expense                           (45.8)         (45.6)        (183.8)        (179.8)

     Debt
     refinancing
     costs                                 -              -          (28.0)         (15.1)

       Total
       interest
       expense                         (45.8)         (45.6)        (211.8)        (194.9)
                                       -----          -----         ------         ------

     Earnings
     before
     taxes                             191.5          106.7          583.6          595.6

     Tax
     provision                         (56.6)         (35.3)        (149.6)        (165.0)

     Equity
     in
     results
     of
     affiliates,
     net
     of
     tax                                (0.3)          (0.3)           0.6           (1.3)


     Net
     earnings
     from
     continuing
     operations                        134.6           71.1          434.6          429.3
     ----------                        -----           ----          -----          -----


     Discontinued
     operations,
     net
     of
     tax                                   -            0.1            0.4           (2.8)


     Net
     earnings                          134.6           71.2          435.0          426.5
     --------                          -----           ----          -----          -----


     Less
     net
     earnings
     attributable
     to
     noncontrolling
     interests                         (10.1)         (10.6)         (28.2)         (23.0)


     Net
     earnings
     attributable
     to
     Ball
     Corporation                      $124.5          $60.6         $406.8         $403.5
     ------------                     ------          -----         ------         ------


    Earnings per share:

       Basic
       -
       continuing
       operations                      $0.87          $0.40          $2.79          $2.63

       Basic
       -
       discontinued
       operations                          -              -              -          (0.02)

       Total
       basic
       earnings
       per
       share                           $0.87          $0.40          $2.79          $2.61
                                       =====          =====          =====          =====


       Diluted
       -
       continuing
       operations                      $0.85          $0.39          $2.73          $2.57

       Diluted
       -
       discontinued
       operations                          -              -              -          (0.02)

       Total
       diluted
       earnings
       per
       share                           $0.85          $0.39          $2.73          $2.55
                                       =====          =====          =====          =====


      Weighted average
       shares outstanding
       (000s):

      Basic                          143,072        151,931        145,943        154,648

      Diluted                        146,635        155,492        149,223        158,084

    Condensed Financial Statements (Fourth Quarter 2013)
    ---------------------------------------------------


                  Unaudited Condensed Consolidated Statements of Cash Flows


                                    Year Ended December
                                            31,
                                   --------------------

    ($ in millions)                                  2013                     2012
                                                     ----                     ----


    Cash Flows from
     Operating
     Activities:

    Net earnings                                   $435.0                   $426.5

    Discontinued
     operations, net
     of tax                                          (0.4)                     2.8

    Depreciation and
     amortization                                   299.9                    282.9

    Business
     consolidation
     and other
     activities                                      78.8                    102.8

    Deferred tax
     provision                                       (1.6)                    14.0

    Other, net                                      (34.1)                   (25.3)

    Changes in
     working capital                                 63.7                     54.6

    Cash provided by
     (used in)
     continuing
     operating
     activities                                     841.3                    858.3

    Cash provided by
     (used in)
     discontinued
     operating
     activities                                      (2.3)                    (5.1)

    Total cash
     provided by
     (used in)
     operating
     activities                                     839.0                    853.2
    ------------                                    -----                    -----

    Cash Flows from
     Investing
     Activities:

    Capital
     expenditures                                  (378.3)                  (305.0)

    Business
     acquisitions,
     net of cash
     acquired                                       (14.2)                   (71.2)

    Other, net                                       13.4                     20.2

    Cash provided by
     (used in)
     investing
     activities                                    (379.1)                  (356.0)
    ----------------                               ------                   ------

    Cash Flows from
     Financing
     Activities:

    Changes in
     borrowings, net                                290.6                     77.8

    Purchases of
     common stock,
     net of
     issuances                                     (398.8)                  (494.1)

    Dividends                                       (75.2)                   (61.8)

    Other, net                                      (20.6)                    (8.8)

    Cash provided by
     (used in)
     financing
     activities                                    (204.0)                  (486.9)
    ----------------                               ------                   ------

    Effect of
     currency
     exchange rate
     changes on cash                                (14.0)                    (2.0)

    Change in cash                                  241.9                      8.3

    Cash -beginning
     of period                                      174.1                    165.8

    Cash -end of
     period                                        $416.0                   $174.1
    ------------                                   ======                   ======

    Condensed Financial Statements (Fourth Quarter 2013)
    ---------------------------------------------------


    Unaudited Condensed Consolidated Balance Sheets


                                              December 31,
                                              ------------

    ($ in millions)                            2013          2012
                                               ----          ----


    Assets

    Current assets

      Cash and cash equivalents              $416.0        $174.1

      Receivables, net                        859.4         930.1

      Inventories, net                      1,028.3       1,044.4

      Deferred taxes and other current
       assets                                 162.0         190.8

      Total current assets                  2,465.7       2,339.4

    Property, plant and equipment,
     net                                    2,372.3       2,276.7

    Goodwill                                2,404.3       2,359.4

    Other assets, net                         577.5         531.6


      Total assets                         $7,819.8      $7,507.1
      ------------                         --------      --------


    Liabilities and Shareholders' Equity

    Current liabilities

      Short-term debt and current
       portion of long-term debt             $422.6        $219.8

      Payables and other accrued
       liabilities                          1,504.8       1,466.0

      Total current liabilities             1,927.4       1,685.8

    Long-term debt                          3,182.5       3,085.3

    Other long-term liabilities             1,318.6       1,446.0

    Shareholders' equity                    1,391.3       1,290.0


      Total liabilities and
       shareholders' equity                $7,819.8      $7,507.1
      ---------------------                --------      --------

    Notes to the Condensed
     Financial Statements (Fourth
     Quarter 2013)
    -----------------------------


    1. Business Segment
     Information


    On January 1, 2013, the
     company implemented changes
     to its management and
     internal reporting structure.
     As a result, the European
     extruded aluminum business is
     now included in the metal
     food and household products
     packaging segment. This
     business was previously
     included in the metal
     beverage packaging, Europe,
     segment. The segment results
     for the three months and year
     ended December 31, 2012, have
     been retrospectively adjusted
     to conform to the current
     year presentation.
                                                                                      
                                                                                      
                                         Three Months
                                            Ended                   Year Ended
                                        December 31,               December 31,
                                        ------------               ------------
                                                                                    
    ($ in millions)                    2013         2012         2013         2012
                                       ----         ----         ----         ----
                                                                                    
                                                                                    
    Net sales -
                                                                                    
    Metal beverage packaging,
     Americas & Asia               $1,002.7     $1,114.8     $4,193.4     $4,541.7
                                                                                    
    Metal beverage packaging,
     Europe                           427.8        394.3      1,828.3      1,771.3
                                                                                    
    Metal food & household
     products packaging               345.2        363.2      1,558.6      1,559.9
                                                                                    
    Aerospace & technologies          222.1        245.0        897.1        876.8
                                                                                    
    Corporate and intercompany
     eliminations                      (1.0)        (3.1)        (9.3)       (14.0)
                                       ----         ----         ----        -----
                                                                                    
    Net sales                      $1,996.8     $2,114.2     $8,468.1     $8,735.7
                                   ========     ========     ========     ========
                                                                                    
                                                                                    
    Earnings before interest and
     taxes -
                                                                                    
    Metal beverage packaging,
     Americas & Asia                 $147.3       $138.0       $511.8       $522.5
                                                                                    
    Business consolidation and
     other activities                  23.0        (19.5)        (3.6)       (52.4)
                                       ----        -----         ----        -----
                                                                                    
    Total metal beverage
     packaging, Americas & Asia       170.3        118.5        508.2        470.1
                                      -----        -----        -----        -----
                                                                                    
                                                                                    
    Metal beverage packaging,
     Europe                            39.4         29.6        182.6        182.3
                                                                                    
    Business consolidation and
     other activities                  (6.0)        (3.4)       (10.6)        (9.6)
                                       ----         ----        -----         ----
                                                                                    
    Total metal beverage
     packaging, Europe                 33.4         26.2        172.0        172.7
                                       ----         ----        -----        -----
                                                                                    
                                                                                    
    Metal food & household
     products packaging                36.8         36.8        177.4        167.8
                                                                                    
    Business consolidation and
     other activities                  (6.3)       (27.5)       (63.7)       (27.5)
                                       ----        -----        -----        -----
                                                                                    
    Total metal food & household
     products packaging                30.5          9.3        113.7        140.3
                                       ----          ---        -----        -----
                                                                                    
                                                                                    
    Aerospace & technologies           25.1         24.2         80.1         86.6
                                                                                    
    Business consolidation and
     other activities                     -         (1.9)        (0.2)        (1.9)
                                        ---         ----         ----         ----
                                                                                    
    Total aerospace &
     technologies                      25.1         22.3         79.9         84.7
                                       ----         ----         ----         ----
                                                                                    
                                                                                    
    Segment earnings before
     interest and taxes               259.3        176.3        873.8        867.8
                                                                                    
                                                                                    
    Undistributed and corporate
     expenses and  intercompany
     eliminations, net
                                                                       
                           (21.6)     (17.5)       (77.7)       (65.9)
                                                                                    
    Business consolidation and
     other activities                  (0.4)        (6.5)        (0.7)       (11.4)
                                       ----         ----         ----        -----
                                                                                    
    Total undistributed and
     corporate expenses, net          (22.0)       (24.0)       (78.4)       (77.3)
                                      -----        -----        -----        -----
                                                                                    
                                                                                    
     Earnings before interest and
      taxes                          $237.3       $152.3       $795.4       $790.5
                                     ======       ======       ======       ======

    Notes to the Condensed Financial
     Statements (Fourth Quarter 2013)
    ---------------------------------


    2. Significant Business
     Consolidation Activities and Other
     Noncomparable Items


    2013


    Metal Beverage Packaging, Americas
     and Asia
    ----------------------------------


    During July 2013, the company signed
     a compensation agreement with the
     Chinese government for
     approximately $72 million pretax to
     close the Shenzhen manufacturing
     facility and relocate the
     production capacity. As of December
     31, 2013, the company has received
     and recorded the following: (1)
     $34.0 million of compensation for
     land and buildings, resulting in
     income of $26.2 million for the
     excess compensation over net book
     value; (2) $26.8 million of
     compensation for machinery and
     equipment, including removal costs,
     of which $3.8 million was used to
     offset 2013 costs and $23.0 million
     was deferred in the balance sheet
     to offset future capital
     expenditures for the relocation of
     capacity; (3) $6.2 million of
     compensation for business
     interruption, of which $4.1 million
     was recognized in cost of sales in
     2013 and $2.1 million will be
     recognized in 2014; and (4) $7.2
     million of expense for severance
     costs.


    The fourth quarter and full year
     included charges of $3.4 million
     ($2.0 million after tax) and $20.5
     million ($12.4 million after tax)
     related to previously announced
     closures and capacity reductions in
     the company's Milwaukee, Wisconsin;
     Columbus, Ohio; and Gainesville,
     Florida, facilities; as well as
     related voluntary separation
     programs.


    Metal Food and Household Products
     Packaging
    ---------------------------------


    During the fourth quarter, the
     company announced that it will
     close its Danville, Illinois, food
     and household products packaging
     facility in the second half of 2014
     and recorded charges of $4.9
     million ($3.0 million after tax).
     The Danville facility produces
     steel aerosol cans and ends for
     household products customers, and
     its production capabilities will be
     supplied by other Ball food and
     household products packaging
     facilities.


    In the third quarter, the company
     recorded an accounts receivable
     provision of $27.0 million ($16.4
     million after tax) as a result of
     the October 28, 2013, bankruptcy
     filing of a metal food and
     household products packaging
     segment customer. This provision
     represents the company's estimate
     of the most likely potential loss
     of value it expects to incur as a
     result of the financial condition
     of this customer. The company's
     estimate of potential loss as a
     result of this event may change in
     the future if the customer's facts
     and circumstances change.


    In February 2013, Ball announced the
     closure of its Elgin, Illinois,
     metal food and household products
     packaging facility, which ceased
     production in December. The fourth
     quarter and full year included
     charges of $1.0 million ($0.9
     million after tax) and $29.0
     million ($18.0 million after tax),
     respectively, in connection with
     this closure. The full year also
     included charges of $5.9 million
     ($3.6 million after tax) to migrate
     certain employees from a multi-
     employer defined benefit pension
     plan to a Ball-sponsored defined
     benefit pension plan and income of
     $3.5 million ($2.1 million after
     tax) related to the reimbursement
     of funds paid in 2012 to settle
     certain Canadian defined benefit
     pension liabilities.


    Metal Beverage Packaging, Europe,
     and Corporate
    ---------------------------------


    The fourth quarter and full year
     included charges of $6.2 million
     ($5.8 million after tax) and $11.7
     million ($10.1 million after tax)
     for headcount reductions, cost-out
     initiatives and the relocation of
     the company's European headquarters
     from Germany to Switzerland, as
     well as additional tax expense of
     $2.0 million and $7.9 million,
     respectively, related to this
     relocation.


    During the second quarter, Ball
     issued $1 billion of 4.00 percent
     senior notes due in November 2023
     and tendered for the redemption of
     $375 million of 7.125 percent
     senior notes originally due in
     September 2016. The redemption of
     the bonds and the renegotiation of
     Ball's bank credit facilities in
     June resulted in a charge of $26.9
     million ($16.3 million after tax)
     for the call premium and the write
     off of unamortized financing costs
     and discounts.


    2012


    In August 2012, Ball announced plans
     to close its Columbus, Ohio,
     beverage can manufacturing facility
     and its Gainesville, Florida, can
     end facility. In connection with
     the closures and a related
     voluntary separation program
     completed in the segment, the
     company recorded charges of $18.9
     million ($11.5 million after tax)
     in the fourth quarter and $50.2
     million ($30.5 million after tax)
     for the full year.


    In the fourth quarter, the company
     finalized the settlement of certain
     Canadian defined benefit pension
     plan liabilities resulting in
     pretax charges of $27.1 million
     ($16.5 million after tax). The
     fourth quarter also included
     charges of $2.9 million ($1.7
     million after tax) for transaction
     costs related to an acquisition in
     Mexico in December 2012 and $3.4
     million ($2.1 million after tax)
     for a voluntary separation program
     offered to corporate headquarters
     and aerospace and technologies
     employees. The fourth quarter and
     full year included charges of $1.3
     million ($1.0 million after tax)
     and $1.7 million ($1.3 million
     after tax), respectively, related
     to a fire at one of the company's
     beverage container plants in the
     United Kingdom.



    Notes to the Condensed Financial
     Statements (Fourth Quarter 2013)
    ---------------------------------


    2. Significant Business Consolidation
     Activities and Other Noncomparable
     Items (continued)


    The fourth quarter and full year of
     2012 included charges of $2.9
     million ($2.1 million after tax) and
     $12.5 million ($8.9 million after
     tax), respectively, for the
     relocation of the company's European
     headquarters from Germany to
     Switzerland during the third quarter
     of 2012, as well as fourth quarter
     and full year 2012 charges of
     additional tax expense of $1.9
     million and $3.2 million,
     respectively, related to the
     relocation.


    The fourth quarter and full year of
     2012 also included net charges of
     $2.3 million ($1.6 million after
     tax) and $5.0 million ($3.3 million
     after tax), respectively, for
     ongoing costs related to previously
     closed facilities and other
     insignificant costs.


    A summary of the effects of the above
     transactions on after-tax earnings
     is as follows:
                                                                                                                           
                                                                                                                                      
                                                             Three Months Ended                                  Year Ended
                                                                                                                                      
                                                                December 31,                                    December 31,
                                                                ------------                                    ------------
                                                                                                                                         
      ($ in millions, except per share
       amounts)                                                2013             2012                        2013                   2012
                                                               ----             ----                        ----                   ----
                                                                                                                           
                                                                                                                           
      Net earnings attributable to
       Ball Corporation, as reported                         $124.5            $60.6                      $406.8                 $403.5
                                                                                                                           
      Discontinued operations, net of
       tax                                                        -             (0.1)                       (0.4)                   2.8
                                                                                                                                        
      Business consolidation and
       other activities, net of tax                             2.3             38.4                        66.1                   67.5
                                                                                                                           
      Debt refinancing costs, net of
       tax                                                        -                -                        17.1                    9.2
                                                                                                                           
        Net earnings attributable to Ball Corporation
                                                                                                                           
           before above transactions
            (Comparable Earnings)                            $126.8            $98.9                      $489.6                 $483.0
                                                             ======            =====                      ======                 ======
                                                                                                                           
                                                                                                                           
        Per diluted share before above
         transactions                                         $0.86            $0.64                       $3.28                  $3.06
                                                              =====            =====                       =====                  =====
                                                                                                                           
                                                                                                                           
                                                                                                                           
    A summary of the effects of the above transactions on earnings before interest and taxes is as follows:
                                                                                                                           
                                                                                                                                      
                                                            Three Months Ended                                Year Ended
                                                                                                                                      
                                                               December 31,                                  December 31,
                                                               ------------                                  ------------
                                                                                                                                        
      ($ in millions)                                          2013             2012                        2013                   2012
                                                               ----             ----                        ----                   ----
                                                                                                                           
                                                                                                                           
       Earnings before interest and
        taxes, as reported                                   $237.3           $152.3                      $795.4                 $790.5
                                                                                                                                        
       Business consolidation and
        other activities                                      (10.3)            58.8                        78.8                  102.8
                                                                                                                           
         EBIT before above transactions
          (Comparable EBIT)                                  $227.0           $211.1                      $874.2                 $893.3
                                                             ======           ======                      ======                 ======
                                                                                                                           
                                                                                                                           
                                                                                                                                         
    A summary of the free cash flow calculation is as follows:
                                                                                                                           
                                                                                                    
                                                                                       Year Ended
                                                                                                    
                                                                                      December 31,
                                                                                      ------------
                                                                                                                           
                                                                                              2013                   2012
                                                                                              ----                   ----
                                                                                                                           
                                                                                                                           
      Cash flow provided by operating activities                                            $839.0                 $853.2
                                                                                                                           
      Less capital expenditures                                                             (378.3)               (305.0)
                                                                                                                           
      Free cash flow                                                                        $460.7                 $548.2
                                                                                            ======                 ======
                                                                                                                           
    Free cash flow is typically
     derived directly from the
     company's cash flow
     statements and defined as
     cash flows from operating
     activities (both continuing
     and discontinued) less
     capital expenditures. Cash
     flow provided by (used in)
     operating activities is the
     most comparable U.S. GAAP
     term to free cash flow, and
     it should not be inferred
     that the entire free cash
     flow amount is available for
     discretionary expenditures.


    Non-U.S. GAAP Measures- Non-
     U.S. GAAP measures should not
     be considered in isolation.
     They should not be considered
     superior to, or a substitute
     for, financial measures
     calculated in accordance with
     U.S. GAAP and may not be
     comparable to similarly
     titled measures of other
     companies. Presentations of
     earnings and cash flows
     presented in accordance with
     U.S. GAAP are available in
     this earnings release and
     quarterly and annual
     regulatory filings.

SOURCE Ball Corporation