EXHIBIT 99.1 PRESS RELEASE
Published on October 27, 2005
Exhibit 99.1
News
Release
|
For
Immediate Release
|
http://www.ball.com
|
|
|
Investor
Contact:
|
Ann.
T. Scott
|
303-460-3537,
ascott@ball.com
|
|
Media
Contact:
|
Scott
McCarty
|
303-460-2103,
smccarty@ball.com
|
Ball
Corporation Reports Third Quarter Earnings
BROOMFIELD,
Colo., Oct. 27, 2005—Ball Corporation [NYSE:BLL] today reported third quarter
earnings of $79.3 million, or 73 cents per diluted share, on
sales of
$1.58 billion, compared to $101.7 million, or 90 cents
per
diluted share, on sales of $1.48 billion in the third quarter of
2004.
The
2005
third quarter results include net after-tax costs of $12.5 million,
or
12 cents per diluted share, connected with debt refinancing costs and
the
provision for costs associated with the company’s previously announced program
to streamline its beverage can end manufacturing processes (See note 2
to
the accompanying condensed financials). The third quarter 2004 results included
an after-tax gain of $4.2 million, or four cents per diluted share,
related
primarily to proceeds on asset dispositions in China being in excess of amounts
included in an earlier business consolidation charge.
For
the
first nine months of 2005, Ball’s results were earnings of $216.9 million,
or $1.95 per diluted share, on sales of $4.46 billion. Through
three
quarters of 2004, Ball had earnings of $239.2 million, or $2.10 per
diluted share, on sales of $4.18 billion. The nine-month 2005 results
include net after-tax costs of $18.4 million, or 16 cents per
diluted
share, related to business consolidation and debt refinancing activities. The
2004 nine-month results include the after-tax gain of $4.2 million,
or four
cents per diluted share, related to the asset dispositions in
China.
R. David
Hoover, chairman, president and chief executive officer, said third quarter
results were comparable with the same period in 2004 despite higher costs for
a
number of items including energy, freight and the coatings used in the company’s
metal packaging operations. He said the company’s continued profit improvement
programs, along with lower interest expense and lower taxes, have helped
mitigate the effects of the higher costs.
-
more
-
Ball
Corporation
10
Longs
Peak Drive ·
PO Box
5000 ·
Broomfield, CO 80021 ·
(303)
460-2103
“Our
Quasquicentennial Year”
Ball
Corp. - 2
“Our
operations are doing a good job of attempting to control those costs they can
control and to make provisions for the pass through of those costs that need
to
be passed through,” Hoover said. “That, along with stronger sales across the
board compared to a year ago and capital spending projects to improve our
businesses, help position us well for the future as we complete this year and
move into 2006.”
North
American Packaging Segment
Third
quarter results from the North American packaging segment were earnings of
$65.5 million on sales of $1.05 billion, compared to
$101.5 million on sales of $983.1 million in the third quarter
of
2004. The third quarter of 2005 included a provision of $19.3 million
for
the costs associated with streamlining the beverage can end manufacturing
process. For the first nine months, North American packaging segment earnings
were $209.9 million on sales of $2.87 billion, including provisions
totaling $28.1 million related to the beverage can end project and closure
of a Canadian food can manufacturing plant, compared to $259.5 million
on
sales of $2.7 billion a year ago.
“Our
North American packaging segment has been the one most affected by higher
costs,” Hoover said. “Energy, freight and coatings costs through three quarters
have been more than $35 million higher in 2005 than they were in 2004.
In
addition, higher steel prices have hurt results in our metal food can
operations.
“We
are
looking to annual consumer and producer price index increases contained in
certain of our contracts and energy and freight surcharges, among other options,
to help bring results in the North American packaging segment back to acceptable
levels,” Hoover said.
“In
addition, we are taking numerous actions within our operations to improve
results,” Hoover said. “In the third quarter we completed the shutdown of a food
can manufacturing plant in Canada. We also began preparing for the conversion
of
a beverage can manufacturing line in Indiana from the production of standard
12-ounce cans to the production of specialty cans, as demand for these
containers continues to grow. Elsewhere, work is progressing on our project
to
upgrade and streamline manufacturing processes for aluminum beverage can
ends.”
-
more
-
Ball
Corporation
10
Longs
Peak Drive ·
PO Box
5000 ·
Broomfield, CO 80021 ·
(303)
460-2103
“Our
Quasquicentennial Year”
Ball
Corp. - 3
International
Packaging Segment
Third
quarter earnings in the international packaging segment were $57.3 million
on sales of $366.1 million, compared to $65 million on sales
of
$334.3 million in 2004. The 2004 results included a gain of $6 million
from business consolidation activities in China. For the first nine months,
international packaging segment results, including a $3.4 million first
quarter charge for the full write-off of a minority-owned joint venture in
China, were earnings of $145.8 million on sales of $1.06 billion,
compared to $154.7 million on sales of $969.6 million in 2004,
including the $6 million third quarter gain last year.
“International
packaging segment earnings were down slightly due in part to some of the same
pressures experienced in our North American packaging segment plus some poor
weather in Western Europe during the second half of the quarter,” Hoover said.
“Costs for materials, energy, freight and coatings have all been higher in 2005
than in 2004. We also experienced some unfavorable shipping patterns as we
brought on additional customers who now will be served more efficiently by
our
new plant in Belgrade.”
The
plant
in Serbia was officially dedicated near the end of the quarter and is already
nearly sold out. It was constructed in the rapid time of 10 months and was
made
large enough to accommodate a second can production line and an end
manufacturing module for future growth.
“Our
operations in China continued to improve,” Hoover said. “Sales remain strong and
we are experiencing double-digit growth this year, as the can industry continues
to expand in China. Our plants have improved their productivity in line with
the
sales growth. We anticipate demand for beverage cans in China to continue to
pick up with the strong economy there and in advance of the 2008 Olympic
Games.”
Aerospace
and Technologies Segment
The
aerospace and technologies segment had third quarter earnings of
$15.2 million on sales of $164.8 million, compared to
$11.6 million on sales of $161.3 million in 2004. For the first
nine
months, segment earnings, including a $3.8 million first quarter charge
for
the write-down to net realizable value of a small aerospace equity investment,
were $39 million on sales of $527.5 million, compared to
$34.8 million on sales of $491.9 million in the first nine months
of
2004.
“The
third quarter began with a significant technical and performance milestone
for
our aerospace and technologies segment when the two Ball-built Deep Impact
spacecraft successfully completed their mission by colliding with comet
Tempel 1 and recording a scientific treasure trove of data from that
impact,” Hoover said. “That was a precursor of another outstanding quarter for
this segment of our company.
-
more
-
Ball
Corporation
10
Longs
Peak Drive ·
PO Box
5000 ·
Broomfield, CO 80021 ·
(303)
460-2103
“Our
Quasquicentennial Year”
Ball
Corp. - 4
“Our
aerospace and technologies segment has experienced tremendous growth over the
last five years. We continuously monitor the level of available government
funding and our investment in this business,” Hoover said. “Government budget
pressures could result in delays or extensions of certain programs.
Nevertheless, the demand for our products and technical capabilities is
exceptionally strong, 2005 will be another record year, our backlog is healthy
and the long-term outlook for this segment remains very positive.”
Outlook
“Our
third quarter results keep us on track to have second half 2005 results be
comparable to our record performance in the second half of 2004, excluding
business consolidation activity and debt refinancing costs,” Hoover said. “We
feel that doing so would be a considerable accomplishment in what we have
described as a transition year for Ball Corporation.
“During
this transition year we have invested in our best performing businesses in
order
to remain competitive in our industries while delivering the highest quality
products to our customers,” Hoover said. “Our conversion of 12-ounce beverage
can lines to the production of specialty size cans, the upgrade in our beverage
can end manufacturing capabilities, the new plant in Belgrade and some strategic
expansion of our aerospace capabilities are prime examples of investments that
we expect to yield returns in 2006 and beyond.
“Those
investments, along with added volumes from certain key customers and potential
improvement in the German deposit situation, should be indicators of improved
performance in 2006,” Hoover said.
Raymond J.
Seabrook, senior vice president and chief financial officer, said that with
the
softness in the company’s stock price during the third quarter, the company
stepped up its stock repurchase program.
“We
repurchased more than $310 million of our stock through the third quarter,
and we now anticipate our net stock buy-back for the year to be at least
$350 million,” Seabrook said. “Additionally, our board of directors
approved yesterday an authorization to repurchase up to12 million
shares.”
Seabrook
said he anticipates a reduction in Ball’s interest expense in 2006 as a result
of the refinancing of the company’s senior secured credit facilities and the
redemption of senior notes that were due in 2006. He also said the repatriation
of approximately $515 million in foreign earnings and capital is expected
to keep the company’s effective tax rate at a lower level for several more
years.
-
more
-
Ball
Corporation
10
Longs
Peak Drive ·
PO Box
5000 ·
Broomfield, CO 80021 ·
(303)
460-2103
“Our
Quasquicentennial Year”
Ball
Corp. - 5
Ball Corporation is a supplier of metal and plastic packaging products,
primarily for the beverage and food industries. The company also owns Ball
Aerospace & Technologies Corp., which develops sensors, spacecraft, systems
and components for government and commercial markets. Ball Corporation employs
more than 13,500 people and reported 2004 sales of
$5.4 billion.
Conference
Call Information
Ball
Corporation will hold its quarterly conference call on the company’s third
quarter 2005 results today at 8:30 a.m. Mountain Time (10:30 a.m.
Eastern). The
North
American toll-free number for the call is 800-728-2149. International callers
should dial 415-537-1896. For those unable to listen to the live call, a taped
rebroadcast will be available until 10:30 p.m. Mountain Time on
Nov. 3, 2005. To access the rebroadcast, dial 800-633-8284 (domestic
callers) or +1-402-977-9140 (international callers) and enter 21263491 as the
reservation number.
Please
use the following URL for a Web cast of the live call and for the
replay:
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=115234&eventID=1140661
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 investor relations section under
“presentations.”
Forward-Looking
Statements
The
information in this news release contains “forward-looking” statements and other
statements concerning future events and financial performance. Words such as
“expects,”“anticipates,”“estimates,” and variations of same and similar
expressions are intended to identify forward-looking statements. Forward-looking
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 the company’s filings with the
Securities and Exchange Commission, especially in Exhibit 99.2 in the
most
recent Form 10-K. These filings are available at our Web site and at
www.sec.gov. Factors that might affect our packaging segments include
fluctuation in consumer and customer demand and preferences; availability and
cost of raw materials, including due to the effects of hurricanes Katrina and
Rita, as well as recent significant increases in resin, steel, aluminum and
energy costs, and the ability to pass such increases on to customers;
competitive packaging availability, pricing and substitution; changes in climate
and weather; fruit, vegetable and fishing yields; industry productive capacity
and competitive activity; failure to achieve anticipated productivity
improvements or production cost reductions, including those associated with
our
beverage can end project; the German mandatory deposit or other restrictive
packaging laws; changes in major customer or supplier contracts or loss of
a
major customer or supplier; international business risks, including foreign
exchange rates, tax rates and activities of foreign subsidiaries; and the effect
of LIFO accounting on earnings. Factors that might affect aerospace segment
include: funding, authorization and availability of government contracts and
the
nature and continuation of those contracts; and delays, extensions and technical
uncertainties affecting segment contracts. Factors that could affect the company
as a whole include those listed plus: acquisitions, joint ventures or
divestitures; regulatory action or laws including tax, environmental and
workplace safety; governmental investigations; technological developments and
innovations; goodwill impairment; antitrust, patent and other litigation;
strikes; boycotts; labor cost changes; rates of return projected and earned
on
assets of the company's defined benefit retirement plans; reduced cash flow;
interest rates affecting our debt; and changes to unaudited results due to
statutory audits or management’s evaluation of the company’s internal control
over financial reporting.
21/05 #
#
#
Ball
Corporation
10
Longs
Peak Drive ·
PO Box
5000 ·
Broomfield, CO 80021 ·
(303)
460-2103
“Our
Quasquicentennial Year”
|
Condensed
Financials (3rd
quarter 2005)
|
|||||||||||||
|
Unaudited
Statement of Consolidated Earnings
|
|||||||||||||
|
Three
months ended
|
Nine
months ended
|
||||||||||||
|
($
in millions, except per share amounts)
|
October
2,
2005
|
October
3,
2004
|
October
2,
2005
|
October
3,
2004
|
|||||||||
|
Net
sales (Note
1)
|
$
|
1,583.9
|
$
|
1,478.7
|
$
|
4,460.0
|
$
|
4,177.4
|
|||||
|
Costs
and expenses
|
|||||||||||||
|
Cost
of sales (excluding depreciation and amortization)
|
1,329.1
|
1,196.4
|
3,728.6
|
3,402.4
|
|||||||||
|
Business
consolidation costs (gains)
(Note
2)
|
19.3
|
(6.7
|
)
|
28.1
|
(6.7
|
)
|
|||||||
|
Depreciation
and amortization
|
54.4
|
56.7
|
160.8
|
162.7
|
|||||||||
|
Selling,
general and administrative
|
52.6
|
63.0
|
171.6
|
201.8
|
|||||||||
|
1,455.4
|
1,309.4
|
4,089.1
|
3,760.2
|
||||||||||
|
Earnings
before interest and taxes (Note
1)
|
128.5
|
169.3
|
370.9
|
417.2
|
|||||||||
|
Interest
expense befpre debt refinancing costs
|
(24.4
|
)
|
(25.7
|
)
|
(74.5
|
)
|
(79.0
|
)
|
|||||
|
Debt
refinancing costs (Note 2)
|
(1.3
|
)
|
-
|
(1.3
|
)
|
-
|
|||||||
|
Total
interest expense
|
(25.7
|
)
|
(25.7
|
)
|
(75.8
|
)
|
(79.0
|
)
|
|||||
|
Tax
provision (Note 3)
|
(26.6
|
)
|
(46.3
|
)
|
(89.3
|
)
|
(108.6
|
)
|
|||||
|
Minority
interests
|
(0.2
|
)
|
(0.3
|
)
|
(0.7
|
)
|
(0.8
|
)
|
|||||
|
Equity
in results of affiliates
|
3.3
|
4.7
|
11.8
|
10.4
|
|||||||||
|
Net
earnings
|
$
|
79.3
|
$
|
101.7
|
$
|
216.9
|
$
|
239.2
|
|||||
|
Earnings
per share (Note
2):
|
|||||||||||||
|
Basic
|
$
|
0.74
|
$
|
0.92
|
$
|
1.98
|
$
|
2.16
|
|||||
|
Diluted
|
$
|
0.73
|
$
|
0.90
|
$
|
1.95
|
$
|
2.10
|
|||||
|
Weighted
average shares outstanding (000’s):
|
|||||||||||||
|
Basic
|
106,696
|
110,620
|
109,301
|
110,907
|
|||||||||
|
Diluted
|
108,580
|
113,537
|
111,385
|
113,826
|
|||||||||
|
Condensed
Financials (3rd
quarter 2005)
|
|||||||||||||
|
Unaudited
Statements of Consolidated Cash Flows
|
|||||||||||||
|
Three
months ended
|
Nine
months ended
|
||||||||||||
|
($
in millions)
|
October
2,
2005
|
October
3,
2004
|
October
2,
2005
|
October
3,
2004
|
|||||||||
|
Cash
Flows From Operating Activities:
|
|||||||||||||
|
Net
earnings
|
$
|
79.3
|
$
|
101.7
|
$
|
216.9
|
$
|
239.2
|
|||||
|
Depreciation
and amortization
|
54.4
|
56.7
|
160.8
|
162.7
|
|||||||||
|
Business
consolidation costs (gains) (Note 2)
|
19.3
|
(6.7
|
)
|
28.1
|
(6.7
|
)
|
|||||||
|
Change
in working capital
|
99.5
|
53.5
|
(64.9
|
)
|
(109.7
|
)
|
|||||||
|
Other
|
(37.9
|
)
|
(13.9
|
)
|
(56.1
|
)
|
6.3
|
||||||
|
214.6
|
191.3
|
284.8
|
291.8
|
||||||||||
|
Cash
Flows From Investing Activities:
|
|||||||||||||
|
Additions
to property, plant and equipment
|
(45.9
|
)
|
(32.5
|
)
|
(194.2
|
)
|
(99.9
|
)
|
|||||
|
Business
acquisitions
|
-
|
-
|
-
|
(17.0
|
)
|
||||||||
|
Other
|
0.3
|
5.4
|
|
(9.2
|
)
|
(1.0
|
)
|
||||||
|
(45.6
|
)
|
(27.1
|
)
|
(203.4
|
)
|
(117.9
|
)
|
||||||
|
Cash
Flows From Financing Activities:
|
|||||||||||||
|
Net
change in borrowings
|
(3.1
|
)
|
(120.3
|
)
|
154.9
|
(71.4
|
)
|
||||||
|
Dividends
|
(10.5
|
)
|
(11.1
|
)
|
(32.3
|
)
|
(27.8
|
)
|
|||||
|
Purchase
of common stock, net
|
(142.4
|
)
|
(1.4
|
)
|
(310.4
|
)
|
(43.5
|
)
|
|||||
|
Other
|
0.2
|
0.1
|
-
|
(0.4
|
)
|
||||||||
|
(155.8
|
)
|
(132.7
|
)
|
(187.8
|
)
|
(143.1
|
)
|
||||||
|
Effect
of exchange rate changes on cash
|
(1.5
|
)
|
0.4
|
(1.9
|
)
|
0.5
|
|||||||
|
Increase
(Decrease) in cash
|
14.7
|
31.9
|
(108.3
|
)
|
31.3
|
||||||||
|
Cash-beginning
of period
|
75.7
|
35.9
|
198.7
|
36.5
|
|||||||||
|
Cash-end
of period
|
$
|
90.4
|
$
|
67.8
|
$
|
90.4
|
$
|
67.8
|
|||||
|
Condensed
Financials (3rd
quarter 2005)
|
|||||||
|
Unaudited
Consolidated Balance Sheets
|
|||||||
|
October
2,
|
October
3,
|
||||||
|
($
in millions)
|
2005
|
2004
|
|||||
|
Assets
|
|||||||
|
Current
assets
|
|||||||
|
Cash
and cash equivalents
|
$
|
90.4
|
$
|
67.8
|
|||
|
Receivables,
net
|
561.5
|
517.5
|
|||||
|
Inventories,
net
|
578.2
|
577.2
|
|||||
|
Deferred
taxes, prepaids and other current assets
|
96.0
|
66.0
|
|||||
|
Total
current assets
|
1,326.1
|
1,228.5
|
|||||
|
Property,
plant and equipment, net
|
1,507.3
|
1,437.6
|
|||||
|
Goodwill
|
1,272.7
|
1,323.9
|
|||||
|
Other
assets
|
270.3
|
361.9
|
|||||
|
Total
assets
|
$
|
4,376.4
|
$
|
4,351.9
|
|||
|
Liabilities
and Shareholders’ Equity
|
|||||||
|
Current
liabilities
|
|||||||
|
Short-term
debt and current portion of long-term debt
|
$
|
196.2
|
$
|
124.0
|
|||
|
Payables
and accrued liabilities
|
967.5
|
893.0
|
|||||
|
Total
current liabilities
|
1,163.7
|
1,017.0
|
|||||
|
Long-term
debt
|
1,555.6
|
1,499.4
|
|||||
|
Other
liabilities and minority interests
|
781.9
|
841.4
|
|||||
|
Shareholders’
equity
|
875.2
|
994.1
|
|||||
|
Total
liabilities and shareholders’ equity
|
$
|
4,376.4
|
$
|
4,351.9
|
|||
|
Notes
to Condensed Financials (3rd
quarter 2005)
|
|||||||||||||
|
($
in millions)
|
Three
months ended
|
Nine
months ended
|
|||||||||||
|
1.Business
Segment Information
|
October
2,
2005
|
October
3,
2004
|
October
2,
2005
|
October
3,
2004
|
|||||||||
|
Net
Sales
|
|||||||||||||
|
North
American packaging-
|
|||||||||||||
|
Metal
beverage
|
$
|
636.1
|
$
|
608.3
|
$
|
1,844.7
|
$
|
1,821.4
|
|||||
|
Metal
food
|
292.2
|
267.9
|
655.5
|
586.9
|
|||||||||
|
Plastic
containers
|
124.7
|
106.9
|
373.9
|
307.6
|
|||||||||
|
1,053.0
|
983.1
|
2,874.1
|
2,715.9
|
||||||||||
|
International
packaging-
|
|||||||||||||
|
Europe
metal beverage
|
315.8
|
295.7
|
924.0
|
856.7
|
|||||||||
|
Asia
metal beverage and plastic containers
|
50.3
|
38.6
|
134.4
|
112.9
|
|||||||||
|
366.1
|
334.3
|
1,058.4
|
969.6
|
||||||||||
|
Aerospace
and technologies
|
164.8
|
161.3
|
527.5
|
491.9
|
|||||||||
|
$
|
1,583.9
|
$
|
1,478.7
|
$
|
4,460.0
|
$
|
4,177.4
|
||||||
|
Earnings
before interest and taxes
|
|||||||||||||
|
North
American packaging
|
$
|
84.8
|
$
|
100.8
|
$
|
238.0
|
$
|
258.8
|
|||||
|
Business
consolidation gains (costs) (Note 2)
|
(19.3
|
)
|
0.7
|
(28.1
|
)
|
0.7
|
|||||||
|
Total
North
American packaging
|
65.5
|
101.5
|
209.9
|
259.5
|
|||||||||
|
International
packaging
|
57.3
|
59.0
|
145.8
|
148.7
|
|||||||||
|
Business
consolidation gains (Note 2)
|
-
|
6.0
|
-
|
6.0
|
|||||||||
|
Total
International
packaging
|
57.3
|
65.0
|
145.8
|
154.7
|
|||||||||
|
Aerospace
and technologies
|
15.2
|
11.6
|
39.0
|
34.8
|
|||||||||
|
Segment
earnings before interest and taxes
|
138.0
|
178.1
|
394.7
|
449.0
|
|||||||||
|
Undistributed
corporate costs
|
(9.5
|
)
|
(8.8
|
)
|
(23.8
|
)
|
(31.8
|
)
|
|||||
|
$
|
128.5
|
$
|
169.3
|
$
|
370.9
|
$
|
417.25
|
||||||
Notes
to Condensed Financials (3rd
quarter 2005)
2. Business
Consolidation Activities
2005
In
the
third quarter of 2005, Ball commenced a project to upgrade and streamline its
North American beverage can end manufacturing capabilities, a project that
is
expected to result in productivity gains and cost reductions. In connection
with
these activities, the company recorded a $19.3 million charge
($11.7 million after-tax) primarily for the write off of obsolete equipment
spare parts and employee termination costs.
During
the second and third quarters of 2005, Ball redeemed $31 million of
its
7.75% Senior Notes due in August 2006. The redemption resulted in debt
refinancing costs of $1.3 million ($0.8 million
after-tax).
In
the
second quarter of 2005, Ball announced its plan to close its Baie d’ Urfe
metal food container plant in Canada. In connection with the closure, the
company recorded a charge of $8.8 million ($5.9 million after-tax),
primarily comprised of employee termination costs and the write-down of fixed
assets to net realizable value.
2004
In
the
third quarter of 2004, $6.7 million of earnings was recorded
($4.2 million after-tax) related to the recovery of amounts previously
expensed in a prior year business consolidation charge.
A
summary
of the effects of the above transactions on after-tax earnings
follows:
|
Three
months ended
|
Nine
months ended
|
||||||||||||
|
($
in millions, except per share amounts)
|
October
2,
2005
|
October
3,
2004
|
October
2,
2005
|
October
3,
2004
|
|||||||||
|
Net
earnings as reported
|
$
|
79.3
|
$
|
101.7
|
$
|
216.9
|
$
|
239.2
|
|||||
|
Debt
refinancing costs, net of tax
|
0.8
|
-
|
0.8
|
-
|
|||||||||
|
Business
consolidation costs (gains), net of tax
|
11.7
|
(4.2
|
)
|
17.6
|
(4.2
|
)
|
|||||||
|
Net
earnings before the above items
|
$
|
91.8
|
$
|
97.5
|
$
|
235.3
|
$
|
235.0
|
|||||
|
Per
basic share before the above items
|
$
|
0.86
|
$
|
0.88
|
$
|
2.14
|
$
|
2.12
|
|||||
|
Per
diluted share before the above items
|
$
|
0.85
|
$
|
0.86
|
$
|
2.11
|
$
|
2.06
|
|||||
Ball’s
management segregates the above items related to closed facilities and debt
refinancing costs to evaluate the company’s performance of current operations.
The above is presented on a non-U.S. GAAP basis and should be considered in
connection with the unaudited statement of consolidated earnings. Non-U.S.
GAAP
measures should not be considered in isolation or as a substitute for net
earnings.
3. Repatriation
of Foreign Earnings and Capital
In
July
2005, the company’s CEO approved a foreign dividend and capital distribution
plan that includes the repatriation of undistributed earnings of certain of
its
foreign subsidiaries during the third and fourth quarters of 2005. Under this
plan, the foreign distribution will be approximately $515 million, of
which
$335 million will be taxable resulting in additional taxes payable on
the
distribution of $16 million. These additional taxes payable have been
more
than offset in the third quarter tax provision by the release of accrued taxes
on prior years’ unremitted foreign earnings.