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Ball Corporation BLL reported fourth-quarter 2021 adjusted earnings of 97 cents per share, topping the Zacks Consensus Estimate of 90 cents. The bottom line improved 20% on a year-over-year basis.
On a reported basis, the company’s earnings were 90 cents per share compared with the prior-year quarter’s 68 cents.
Total sales came in at $3,674 million in the reported quarter, up 18.4% from the year-ago quarter. The top line also surpassed the Zacks Consensus Estimate of $3,582.4 million. All the segments reported higher sales volume on the back of higher shipments. In the quarter, global beverage-can volumes were up 7%.
Operational Update
Cost of sales amounted to $2,981 million in fourth-quarter 2021, up 21.8% from the year-ago quarter. The gross profit totaled $693 million compared with the year-ago quarter’s $654 million. The gross margin came in at 18.9%, down from 21.1%.
Selling, general and administrative expenses declined 25% year over year to $122 million. The adjusted operating profit was $424 million compared with the prior-year quarter’s $362 million. The adjusted operating margin came in at 11.5% compared with the prior-year quarter’s 11.7%.
Ball Corporation Price, Consensus and EPS Surprise
Ball Corporation price-consensus-eps-surprise-chart | Ball Corporation Quote
Segment Performance
The Beverage packaging North and Central America segment revenues increased 16.6% to $1,517 million in the fourth quarter. Operating earnings amounted to $162 million, up 16.5% year over year.
Sales at the Beverage packaging, EMEA segment were $870 million in the quarter, up 13% year over year. Operating earnings were down 3% to $103 million.
The Beverage packaging South America segment’s revenues were $615 million in the reported quarter, up 16.2% year over year. Operating earnings were down 3.7% to $103 million.
In the Aerospace segment, sales were up 26% year over year to $530 million. Operating earnings increased 38.4% to $54 million. At the end of the quarter, the segment’s contracted backlog was $2.5 billion. Contracts already won but not yet booked into the current contracted backlog were $5 billion.
Financial Condition
The company reported cash and cash equivalents of $563 million at the end of 2021, down from $1,366 million at the end of 2020. Cash flow generated from operating activities was $1,760 million in 2021 compared with the prior year’s $1,432 million. Ball Corp returned approximately $950 million to shareholders through the year while spending $1.7 billion on capital expenditures. The company’s long-term debt fell slightly to $7,722 million at the end of 2021 from $7,783 million at the end of 2020.