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Ball Reports Increased Revenue In Third Quarter While Margins Drag; Demand Remains Strong

Analyst Note

| Brian Bernard, CFA, CPA |

Narrow-moat-rated Ball reported solid revenue growth in the third quarter as demand for aluminum packaging and Ball’s aerospace technology remains high. Revenue increased 15% year over year, while up roughly 3% sequentially. Demand for aluminum packaging is strong while capacity remains tight. Ball launched 6 new lines in the quarter, and management expects to end the year with 12 billion units of new capacity. While increased capacity is encouraging, there is a risk that demand could level off or decrease, leaving Ball with a significant amount of unused capacity.

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Company Profile

Business Description

Ball is the world's largest metal can manufacturer. The company is focused on increasing capacity amid a wave of new developed-market demand, while pivoting toward faster-growing emerging-market economies in beverage cans. Ball maintains a small presence in both the North American food can market and the U.S. defense industry through its aerospace segment.

Contact
10 Longs Peak Drive, P.O. Box 5000
Broomfield, CO, 80021-2510
T +1 303 469-3131
Sector Consumer Cyclical
Industry Packaging & Containers
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 21,500