Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| But that business is poised to do have an exceptional year this year |
| So they have got a significant plan for improvement and they are off to a good start executing against that |
| Collectively, we delivered strong first quarter results amid tough year-over-year comparisons, driven largely by business divestments executed in 2022 |
| We are right on where we thought we would be and we are really happy with the performance and the execution of those projects |
| And the business is performing exceptionally well |
| We are in a really healthy position in terms of safety stock and we are in a healthy position in terms of we are performing a heck of a lot better than we have in the last couple of years in running our business |
| So we feel really good about the European business for the full year |
| But I was just looking last night actually at the start-up curve for each of those plants and it’s been phenomenally well executed |
| They have done a great job of managing their cost structure, managing their contracts, managing the supply chain and so we are really happy with the performance of the EMEA business |
| Around the globe, beverage cans continue to win relative to other substrates and we continue to leverage our customer mix, scale, regional plant networks, innovation and capable teams across the organization to ensure the best near-term, medium-term and long-term outcomes for all our stakeholders |
| In all seriousness, lots of innovation still happening and continuing to see share gains from our ready-to-drink cocktails |
| In aerospace, our technologies are well positioned to deliver unimpeachable data and monitoring capabilities for both environmental and national security needs |
| So that -- if we can do that, that’s a hell of an accomplishment, because Russia was a very nice profitable business |
| We continue to have nice volume growth |
| Consistent with our prior commentary in 2023, we remain positioned to deliver our long-term goal of 10% to 15% diluted earnings per share growth, inclusive of the Russian business sale headwind and we remain well positioned to generate strong free cash flow to deleverage and return value to our fellow shareholders |
| In addition, the positive momentum in our EMEA, aerospace and aluminum aerosol businesses will continue |
| But I would say, we had a pretty good third quarter last year really in terms of performance in North America |
| But the provider wanted to exit the contract and we were able to extract a very favorable outcome for us and all of that outcome hit us -- benefited us in the first quarter, but that will not repeat |
| You also got -- we got a benefit of that virtual power purchase agreement in the first quarter that won’t repeat and so -- but we will keep earnings relatively flat and that’s due to improved performance across the business |
| And so we have got another quarter of that to do in Q2 and then we think we will be in a much better position from an inventory standpoint |
| They are stepping into these newer contracts that we were confident would be good and they are good, and we will see the benefits of that for the full year |
| So we are really excited about those businesses |
| Scott Morrison George, the only thing I would add is, long-term, the positive -- the best positive here is the can is winning, new product introductions are still heavily weighted to cans and so that bodes well for the can in the long run and that’s we are playing a long game here |
| The teams have done a great job |
| The European business has done a really good job both on the commercial front and the supply chain front to manage our costs |
| Dan Fisher I think both in that business and equally excellent job by our aerosol business, which has a significant present in Europe |
| So we are excited about the future prospects and new product introductions |
| We believe that the customer relationships that we have, they are excited about the second half of the year more so for the cost shift and their hedges rolling off and us being able to step into our aluminum profile |
| We produce products that consumers use daily, we deliver unique technologies to analyze, observe and defend what we value most, and employee owners are showcasing incredible resiliency, while delivering earnings, free cash flow and high quality innovative solutions to our customers and consumers, and as leverage comes down and free cash flow expands, our return of value to shareholders will grow in 2024 and beyond |
| So both of those businesses and both of those management teams have done an extraordinary job to work as partners with our customers to get to a good medium and longer term outcome as we manage through a very different energy and inflationary backdrop in Europe |
| Statement |
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| We had supply chain challenges that cost us money |
| With near-term macroeconomic conditions continuing to pressure consumer demand, Ball’s year-to-date global beverage can volumes were down 1.4% in the first quarter, in line with our expectations |
| As we indicated in our prior call, the second quarter will remain choppy in North and South America metal beverage as we continue to work through higher inventory and manage regional production with an eye on cash |
| And in aerospace, I think, somebody mentioned, we had a choppy year last year |
| In the second half of last year we had some pretty significant supply chain disruption |
| A weaker beer customer or beer mix may shift around as it does from time to time |
| We will have negative mix in the second quarter |
| First quarter sales decreased compared to the same period in 2022, primarily due to the sale of our Russian business in the third quarter of 2022, currency translation, lower volumes and the pass-through of lower aluminum prices, partially offset by the pass-through of inflationary costs |
| In the first quarter, net comparable earnings decreased compared to the same period in 2022, primarily due to the sale of our Russian business in the third quarter of 2022, lower volumes in North and South America, and increased interest expense, partially offset by fixed cost savings, lower depreciation expense and SG&A cost-out initiatives, as well as the contractual pass-through of inflationary costs |
| Europe is really -- we have got the headwind of Russia |
| There is one can size that certainly has excess capacity, writ large in the North and Central American market |
| One, are there any categories without giving away information as proprietary that you expect will be particularly helpful and particularly a headwind to your volume outlook for the rest of the year? Relatedly, you mentioned, Dan, the beer category and there’s been lots of news there |
| But I think your point is valid, I mean, there’s certainly risk in a significantly elevated volume position |
| I mean, clearly, a lot has changed in the last few weeks, months, consumer spending in certain regions including the U.K., seem to be much weaker |
| So at this point, we need to plan to deliver cash and deliver earnings and the end consumer strength or weakness is also something that’s very difficult to understand right now just given the stimulus packages and higher interest rates and all of those things |
| In South America, the negative will be larger than that |
| Including the $86 million Russia business sale, operating earnings headwind, comparable operating earnings should increase nearly $200 million and full year 2023 comparable D&A will likely be in the range of $550 million |
| I wanted to focus on beverage can new product introduction, a lot of uncertainty in the economy, consumers also kind of pulling back a little bit on the spend |
| And you are correct, we believe it will be slightly down at this point as we look out over the course and the balance of the year, given really very little insight into the actual decision for process related to pricing and volume |
| But we -- a lot of this -- the raw material piece is still a bit of an overhang from last year, because we were bringing in a lot and anticipating growth at this time last year |
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