Ball Announces Third Quarter Results

BROOMFIELD, Colo., Oct. 29 /PRNewswire-FirstCall/ -- Ball Corporation (NYSE:
BLL) today reported third quarter net earnings of $103.7 million, or $1.09
cents per diluted share, on sales of $1.97 billion, compared to earnings of
$101.9 million, or $1.05 cents per diluted share, on sales of $2.01 billion in
the third quarter of 2008.

For the first nine months of 2009, Ball's earnings were $306.5 million, or
$3.23 per diluted share, on sales of $5.48 billion. For the same period in
2008, results were earnings of $285.7 million, or $2.92 per diluted share, on
sales of $5.83 billion.

Third quarter 2009 results include $9.1 million ($5.5 million after-tax, or 6
cents per diluted share) of transaction costs related to the acquisition of
four metal beverage packaging plants as well as a charge of $13.6 million
($8.8 million after-tax, or 9 cents per diluted share) for accelerated
depreciation and other costs related primarily to the closure of the two
plastic manufacturing plants announced in the second quarter. Details of third
quarter and nine month comparable segment earnings and business consolidation
activities can be found in Notes 1 and 2 to the unaudited consolidated
financial statements that accompany this news release.

"On a comparable basis, Ball reported diluted earnings per share of $1.24 in
the third quarter, compared to $1.13 in the third quarter of 2008," said R.
David Hoover, chairman, president and chief executive officer. "Excellent
operating performance from our plants, as well as cost savings from prior
rationalization activities, drove improved performance."

Metal Beverage Packaging, Americas & Asia

Metal beverage packaging, Americas and Asia, comparable segment operating
earnings for the third quarter were $102.9 million on sales of $706.4 million,
compared to $77 million on sales of $767 million for the same period in 2008.
For the first nine months, comparable earnings were $223.9 million on sales of
$2.08 billion, compared to $228.4 million on sales of $2.3 billion in the
first nine months of 2008.

Third quarter results were higher primarily due to benefits from cost
rationalizations taken over the past 18 months. Though volumes were down
moderately in North America, increasing demand in Asia contributed to better
performance during the quarter. The company's new joint venture plant in Tres
Rios, Brazil, is on schedule to start up in mid-November to meet the growing
demand for beverage cans in the region.

"The integration of the new facilities acquired on Oct. 1 from AB InBev is
progressing well, and our focus is on identifying best practices and synergies
across all of our metal beverage plants to enhance operating performance,"
said John A. Hayes, executive vice president and chief operating officer.

Metal Beverage Packaging, Europe

Metal beverage packaging, Europe, segment results in the quarter were
operating earnings of $68.8 million on sales of $478 million, compared to
$76.7 million on sales of $511.3 million in 2008. For the first nine months,
earnings were $164.5 million on sales of $1.31 billion, compared to $201.9
million on sales of $1.49 billion in the first nine months of 2008.

While volumes were relatively flat, segment sales and earnings were lower in
the quarter due primarily to changes in product mix and a lower euro /dollar
exchange rate compared to a year ago.

Metal Food & Household Products Packaging, Americas

Metal food and household products packaging, Americas, comparable segment
results in the third quarter were operating earnings of $27.8 million on sales
of $459.5 million, compared to $15.8 million in 2008 on sales of $365 million.
For the first nine months, comparable earnings were $112.5 million on sales of
$1.07 billion, compared to $44.9 million on sales of $912 million during the
same period in 2008.

Third quarter results improved due largely to the effects of prior capacity
rationalizations in the segment, better manufacturing performance and
disciplined management of the business.

Plastic Packaging, Americas

Plastic packaging, Americas, comparable segment results in the third quarter
were operating earnings of $3.8 million on sales of $156.8 million, compared
to $5.3 million on sales of $184.1 million in the third quarter of 2008. For
the first nine months, comparable earnings were $15.2 million on sales of
$498.1 million, compared to $15.8 million on sales of $574 million in the
first nine months of 2008.

Growing demand for specialty plastic packaging for foods and beverages in the
quarter did not offset double-digit volume declines for monolayer PET bottles.

After the quarter closed, Ball sold its plastic pail assets for $32 million to
BWAY Corporation. The transaction involved the sale of a pail manufacturing
plant in Newnan, Ga., that produces injection molded plastic pails and drums
for products such as building materials and pool chemicals.

Aerospace and Technologies

Aerospace and technologies comparable segment results were operating earnings
of $16.2 million on sales of $168.4 million in the quarter, compared to $18.4
million on sales of $180.8 million in 2008. For the first nine months,
comparable earnings were $45.6 million on sales of $528 million, compared to
$56 million on sales of $550 million in the first nine months of 2008. Backlog
at the end of the quarter was $563.5 million.

Earlier this month, the WorldView-2 remote sensing satellite built for
DigitalGlobe successfully launched from Vandenberg Air Force Base, Calif. The
first images from the satellite were released on Oct. 20. In August, new
images were released from the Hubble Space Telescope following its servicing
mission earlier this year. All four of the working science instruments
currently on the telescope were built by Ball Aerospace.

Outlook

"Full-year capital spending will be reduced to around $200 million and
full-year free cash flow will be at least $375 million," said Raymond J.
Seabrook, executive vice president and chief financial officer. "Free cash
flow is not expected to increase significantly above $375 million in 2009 due
to a temporary increase in working capital levels in some businesses. Next
year, we will continue to focus on deleveraging the company's balance sheet
after the acquisition and, with the incremental contribution from the acquired
facilities and a decrease in working capital, expect substantially higher
full-year free cash flow in 2010."

"We are pleased with our solid third quarter results and our improved
performance through the first nine months of the year," Hoover said. "Despite
global economic uncertainty, and one-time costs associated with the
acquisition of the four metal beverage packaging plants, we anticipate fourth
quarter results from continuing operations will be well above those of the
same period last year."

Ball Corporation is a supplier of high-quality metal and plastic packaging for
beverage, food and household products customers, and of aerospace and other
technologies and services, primarily for the U.S. government. Ball Corporation
and its subsidiaries employ more than 14,500 people worldwide and reported
2008 sales of approximately $7.6 billion. For the latest Ball news and for
other company information, please visit www.ball.com.

Conference Call Details
Ball Corporation [NYSE: BLL] will hold its regular quarterly conference call
on the company's results and performance today at 9 a.m. (11 a.m. Eastern
Time). The North American toll-free number for the call is 800-732-6870.
International callers should dial 212-231-2907. Please use the following URL
for a Web cast of the live call:
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=115234&eventID=2459788.

For those unable to listen to the live call, a taped replay will be available
after the call's conclusion until 1 p.m. Eastern Time on Nov. 5, 2009. To
access the replay, call 800-633-8284 (North American callers) or 402-977-9140
(international callers) and use reservation number 21438727.

A written transcript of the call will be posted within 48 hours of the call's
conclusion to Ball's Web site at www.ball.com in the investors section under
"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 are intended to 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 99.2 in our
Form 10-K, which are available at our Web site and at www.sec.gov. Factors
that might affect our packaging segments include fluctuation in product demand
and preferences; availability and cost of raw materials; competitive packaging
availability, pricing and substitution; changes in climate and weather; crop
yields; competitive activity; failure to achieve anticipated productivity
improvements or production cost reductions; mandatory deposit or other
restrictive packaging laws; changes in major customer or supplier contracts or
loss of a major customer or supplier; and changes in foreign exchange rates or
tax rates. Factors that might affect our aerospace segment include: funding,
authorization, availability and returns of government and commercial
contracts; and delays, extensions and technical uncertainties affecting
segment contracts. Factors that might affect the company as a whole include
those listed plus: accounting changes; changes in senior management; the
current global recession and its effects on liquidity, credit risk, asset
values and the economy; successful or unsuccessful acquisitions, joint
ventures or divestitures; integration of recently acquired businesses;
regulatory action or laws including tax, environmental, health and workplace
safety, including in respect of climate change, or chemicals or substances
used in raw materials or in the manufacturing process; governmental
investigations; technological developments and innovations; goodwill
impairment; antitrust, patent and other litigation; strikes; labor cost
changes; rates of return projected and earned on assets of the company's
defined benefit retirement plans; pension changes; reduced cash flow; interest
rates affecting our debt; and changes to unaudited results due to statutory
audits or other effects.

Condensed Financials (September 2009)
--------------------------------------
Unaudited Statements of Consolidated Earnings

Three months ended Nine months ended
------------------ -----------------
($ in millions, September September September September
except per share 27, 28, 27, 28,
amounts) 2009 2008 2009 2008
----------------- -------- -------- -------- --------
Net sales (Note 1) $1,969.1 $2,008.2 $5,480.9 $5,828.7
------------------ -------- -------- -------- --------
Costs and expenses
Cost of sales
(excluding
depreciation) 1,609.7 1,679.9 4,515.4 4,856.1
Depreciation and
amortization 70.4 73.9 206.5 224.7
Selling, general and
administrative 86.8 67.5 239.9 227.6
Business
consolidation
and other
activities
(Note 2) 22.7 9.1 46.8 20.6
Gain on sales of
investments (Note 2) - - (34.8) (7.1)
--- --- ----- ----
1,789.6 1,830.4 4,973.8 5,321.9

------------------ ----- ----- ----- -----
Earnings before
interest and taxes
(Note 1) 179.5 177.8 507.1 506.8
------------------- ----- ----- ----- -----

Total interest
expense (28.9) (33.1) (79.4) (104.0)
Tax provision (52.3) (45.8) (128.8) (128.4)
Equity in
results of
affiliates 5.5 3.1 8.0 11.6
Less net earnings
attributable to
noncontrolling
interests (0.1) (0.1) (0.4) (0.3)

------------- ------ ------ ------ ------
Net earnings $103.7 $101.9 $306.5 $285.7
------------- ------ ------ ------ ------

Earnings per share
(Note 2):
Basic $1.10 $1.07 $3.27 $2.96
Diluted $1.09 $1.05 $3.23 $2.92

Weighted average
shares
outstanding
(000s):
Basic 93,976 95,368 93,763 96,491
Diluted 95,351 96,604 94,950 97,796

Condensed Financials (September 2009)
--------------------------------------
Unaudited Statements of Consolidated Cash Flows

Three months ended Nine months ended
------------------ -----------------
September September September September
($ in millions) 27, 28, 27, 28,
2009 2008 2009 2008
---- ---- ---- ----
Cash Flows From Operating
Activities:
Net earnings $103.7 $101.9 $306.5 $285.7
Depreciation and
amortization 70.4 73.9 206.5 224.7
Business consolidation
and other activities
(Note 2) 14.7 9.1 36.2 20.6
Gain on sales of
investments (Note 2) - - (34.8) (7.1)
Income taxes 6.7 9.4 12.8 15.7
Legal settlement - - - (70.3)
Other changes in
working capital (197.6) 16.8 (528.8) (349.5)
Other (1.0) (3.1) 7.7 18.6
---- ---- --- ----
(3.1) 208.0 6.1 138.4
------------------------- ---- ----- --- -----
Cash Flows From Investing
Activities:
Additions to
property, plant and
equipment (33.2) (70.3) (141.3) (230.8)
Cash collateral
deposits, net 31.0 - 85.7 -
Proceeds from sales of
investments (Note 2) - - 37.0 8.7
Other 1.4 20.0 0.7 9.8
--- ---- --- ---
(0.8) (50.3) (17.9) (212.3)
------------------------- ---- ----- ----- ------
Cash Flows From Financing
Activities:
Net change in
borrowings 389.7 (19.2) 331.7 316.1
Debt issuance costs (12.1) - (12.1) -
Dividends (9.4) (9.3) (28.1) (28.3)
Issuances
(purchases) of
common stock, net (8.8) (76.3) 2.2 (257.5)
Other 3.6 1.1 6.5 3.5
--- --- --- ---
363.0 (103.7) 300.2 33.8
----------------------- ----- ------ ----- ----
Effect of exchange rate
changes on cash (0.5) (3.5) 2.3 2.4
Change in cash 358.6 50.5 290.7 (37.7)
Cash-beginning of period 59.5 63.4 127.4 151.6
---- ---- ----- -----
Cash-end of period $418.1 $113.9 $418.1 $113.9
------------------ ====== ====== ====== ======

Condensed Financials (September 2009)
--------------------------------------
Unaudited Consolidated Balance Sheets

($ in millions) September 27, September 28,
2009 2008
---- ----
Assets
Current assets
Cash and cash equivalents $418.1 $113.9
Receivables, net 1,058.7 773.8
Inventories, net 906.9 1,000.9
Cash collateral - receivable 67.5 -
Deferred taxes and other
current assets 225.9 128.2
----- -----
Total current assets 2,677.1 2,016.8
Property, plant and equipment, net 1,812.1 1,934.5
Goodwill 1,867.9 1,864.2
Other assets, net 435.0 396.2

-------------- -------- --------
Total assets $6,792.1 $6,211.7
-------------- -------- --------

Liabilities and Shareholders' Equity
Current liabilities
Short-term debt and current portion
of long-term debt $253.1 $221.5
Cash collateral - liability 47.7 -
Payables and accrued liabilities 1,251.3 1,143.2
------- -------
Total current liabilities 1,552.1 1,364.7
Long-term debt 2,532.7 2,438.0
Other long-term liabilities 1,228.2 1,000.9
Shareholders' equity 1,479.1 1,408.1

----------------------- -------- --------
Total liabilities and
shareholders' equity $6,792.1 $6,211.7
----------------------- -------- --------

Unaudited Notes to Condensed Financials (September 2009)
--------------------------------------------------------
1. Business Segment Information

Three months ended Nine months ended
------------------ -----------------
September September September September
($ in 27, 28, 27, 28,
millions) 2009 2008 2009 2008
---------- ---------- ---------- ----------
Sales-
Metal beverage
packaging,
Americas & Asia $706.4 $767.0 $2,075.9 $2,304.8
Metal beverage
packaging,
Europe 478.0 511.3 1,312.4 1,487.9
Metal food &
household
packaging,
Americas 459.5 365.0 1,066.5 912.0
Plastic
packaging,
Americas 156.8 184.1 498.1 574.0
Aerospace &
technologies 168.4 180.8 528.0 550.0
----- ----- ----- -----
Net sales $1,969.1 $2,008.2 $5,480.9 $5,828.7
======== ======== ======== ========

Earnings
before
interest
and taxes-
Metal beverage
packaging,
Americas & Asia $102.9 $77.0 $223.9 $228.4
Business
consolidation
activities (Note 2) (1.0) (0.6) (9.3) (4.0)
---- ---- ---- ----
Total metal
beverage
packaging,
Americas & Asia 101.9 76.4 214.6 224.4
----- ---- ----- -----

Metal beverage
packaging,
Europe 68.8 76.7 164.5 201.9
---- ---- ----- -----

Metal food &
household
packaging,
Americas 27.8 15.8 112.5 44.9
Business
consolidation
activities (Note 2) - (4.5) - (4.5)
--- ---- --- ----
Total metal
food &
household
packaging,
Americas 27.8 11.3 112.5 40.4
---- ---- ----- ----

Plastic
packaging,
Americas 3.8 5.3 15.2 15.8
Business
consolidation
activities (Note 2) (12.6) (4.0) (24.5) (8.3)
----- ---- ----- ----
Total plastic
packaging,
Americas (8.8) 1.3 (9.3) 7.5
---- --- ---- ---

Aerospace &
technologies 16.2 18.4 45.6 56.0
Gain on sale of
investment
(Note 2) - - - 7.1
--- --- --- ---
Total aerospace &
technologies 16.2 18.4 45.6 63.1
---- ---- ---- ----

Segment
earnings
before
interest and
taxes 205.9 184.1 527.9 537.3

Undistributed
corporate costs,
net (17.3) (6.3) (42.6) (26.7)
Gain on sale of
investment
(Note 2) - - 34.8 -
Business
consolidation and
other activities
(Note 2) (9.1) - (13.0) (3.8)
---- --- ----- ----
Total
undistributed
corporate
costs, net (26.4) (6.3) (20.8) (30.5)
----- ---- ----- -----

Earnings
before
interest
and taxes $179.5 $177.8 $507.1 $506.8
====== ====== ====== ======

Unaudited Notes to Condensed Financials (September 2009)
--------------------------------------------------------
2. Business Consolidation Activities and Other Significant
Nonoperating Items

2009

In the first quarter, a restructuring charge of $5 million ($3.1 million
after tax) was recorded for accelerated depreciation in connection with
the closure of a North American metal beverage plant.

In the second quarter the following significant nonoperating activities
occurred:
-- The company recorded restructuring charges of $16.2 million ($9.8
million after tax) for the closure of two plastic packaging manufacturing
plants, administrative downsizing in our North American metal beverage
business and clean-up costs related to previously closed and sold
facilities.
-- The company sold a portion of its interest in DigitalGlobe for
proceeds of approximately $37 million. As a result of this transaction, a
gain of $34.8 million ($30.7 million after tax) was recorded in corporate
costs.
-- The company recorded $2.9 million ($1.8 million after tax) for
transaction costs pertaining to the acquisition discussed in Note 3.

In the third quarter, restructuring charges of $13.6 million ($8.8
million after tax) were recorded for accelerated depreciation and other
costs primarily related to the closure of the two plastic manufacturing
plants announced in the second quarter. Also in the quarter, an
additional $9.1 million ($5.5 million after tax) of acquisition
transaction costs were recorded (see Note 3).

2008

In the first quarter, Ball Aerospace & Technologies Corp. sold its shares
in an Australian subsidiary for $8.7 million, net of cash sold, that
resulted in a pretax gain of $7.1 million ($4.4 million after tax).

In the second quarter, a net restructuring charge of $11.5 million ($8.1
million after tax) was recorded primarily for the closure of a North
American metal beverage plant, the closure of a Canadian plastic
packaging manufacturing plant and clean-up costs related to previously
closed and sold facilities.

In the third quarter, $9.1 million ($7.2 million after tax) was
recorded primarily for lease cancellation and accelerated depreciation
costs pertaining to announced plant closures in prior periods.

A summary of the effects of the above transactions on after-tax earnings
follows:

Three months ended Nine months ended
------------------ -----------------
($ in millions, September September September September
except per share 27, 2009 28, 2008 27, 2009 28, 2008
amounts) ---------- ---------- ---------- ----------

Net earnings as
reported $103.7 $101.9 $306.5 $285.7
Business
consolidation
costs, net of tax 8.8 7.2 21.7 15.3
Gain on sales
of
investments,
net of tax - - (30.7) (4.4)
Acquisition
transaction
costs, net of
tax 5.5 - 7.3 -
--- --- --- ---
Net earnings
before above
transactions $118.0 $109.1 $304.8 $296.6
====== ====== ====== ======

Per diluted
share before
above
transactions $1.24 $1.13 $3.21 $3.03
===== ===== ===== =====

Ball's management segregates the above items to evaluate the performance
of the company's operations. The information is presented on a non-U.S.
GAAP basis and should be considered in connection with the unaudited
statements of consolidated earnings. Non-U.S. GAAP measures should not be
considered in isolation.

Unaudited Notes to Condensed Financials (September 2009)
--------------------------------------------------------
3. Subsequent Events

Acquisition

On October 1, 2009, the company acquired four plants from Anheuser-Busch
InBev for $577 million, subject to customary post-closing adjustments.
The plants consist of three beverage can manufacturing plants and one
beverage can end plant, all of which are located in the U.S. These plants
produce about 10 billion aluminum cans and 10 billion easy-open can ends
annually. The transaction is expected to generate revenue and earnings
before interest, taxes, depreciation and amortization of approximately
$680 million and $94 million, respectively, in the first full year of
operation.

Disposition

On October 23, 2009, Ball closed the sale of its plastic pail assets to
BWAY Corporation for $32 million, subject to customary post-closing
adjustments. The transaction largely involves the sale of a pail
manufacturing plant in Newnan, Georgia, which Ball acquired in 2006 as
part of its purchase of U.S. Can Corporation and is included in the
plastics packaging, Americas, segment. The plant produces injection
molded plastic pails and drums for products such as building materials
and pool chemicals. The company estimates the transaction will result in
an insignificant loss on an after-tax basis.

SOURCE Ball Corporation

Investors, Ann T. Scott, +1-303-460-3537, ascott@ball.com, or Media, Scott
McCarty, +1-303-460-2103, smccarty@ball.com, both of Ball Corporation