Aluminium can maker Ball reported Q4 income of $60.6m, down from earnings of $77.5m, in the fourth quarter of 2011. Sales were $2.11bn in Q4, compared with sales of $2.05bn in the fourth quarter of 2011.
Fourth quarter earnings were negatively affected in the European beverage packaging segment by foreign currency translations. The company reported soft demand for beer in the quarter, but said it was offset by strong demand for specialty containers and extruded aluminum aerosol packaging.
However, Ball’s metal beverage packaging, Americas and Asia segment, saw increases demands for speciality packaging in North America and Brazil.
President and chief executive John Hayes said: “Our company’s strong 2012 results continued our progress toward achieving our Drive for 10 vision, and while we face pricing headwinds in Asia and the previously announced 12-ounce volume loss in North America, we remain focused on striving to reach our long-term goal of 10 to 15 percent diluted earnings per share growth.”
‘Challenging European market’
In contrast, glass giant O-I said that segment operating profit increased by $35m versus the prior year, buoyed by improved manufacturing performance in North America and restructuring benefits in Asia Pacific.
The company also said that decline in segment operating profit in Europe was largely due to the impact of lower sales and production volume and foreign currency headwinds.
O-I’s revenues of $7bn in 2012 were down 4.8% from $7.4bn in 2011. Sales grew marginally in North America and South America, but fell in both the Asia- Pacific segment and in Europe, where sales tumbled 11%.
Commenting on the company’s outlook for full year 2013, Al Stroucken, O-I’s chief executive, said: “Our improved segment operating profit over 2011 reflects the success of our pricing strategy to recover margins, as well as significant improvements to the bottom line performance of our North American and Asia Pacific operations.
“To enhance our competitiveness in the challenging European market, we recently launched an asset optimisation program aimed at more effectively meeting customer requirements and improving profitability. Overall, we continued to strengthen our balance sheet by generating significantly higher free cash flow than in the prior year and further reducing our debt.”
Plant closures
Elsewhere, US flexible packaging firm Bemis suffered volume decrease due to the closure of nine plants in four countries as part of a strategic review linked to its takeover of Alcan in 2010, but said its manufacturing footprint now better matches their growth strategy around packaging for food safety and sterility.
Bemis said for the full year 2012, US Packaging net sales of $3bn represented a decrease of 2.3% compared to 2011 but acquisitions increased net sales by 0.8%.
US packaging segment operating profit for 2012 was $366.7m, or 12.1% of net sales, with facility consolidation program costs negatively impacting results during each period.
