PRESS RELEASE DATED OCTOBER 12, 2006
Published on October 12, 2006
Exhibit
99.1
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News
Release
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For
Immediate Release
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http://www.ball.com
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Investor
Contact:
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Ann
T. Scott
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303-460-3537,
ascott@ball.com
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Media
Contact:
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Scott
McCarty
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303-460-2103,
smccarty@ball.com
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Ball
Corporation to Close Two North American Manufacturing
Facilities
BROOMFIELD,
Colo., Oct. 12, 2006—Ball Corporation [NYSE:BLL] announced today that by the end
of the year it will close two manufacturing facilities in North America as
part
of the realignment of the company’s Metal Food & Household Products,
Americas, segment following the acquisition earlier this year of U.S. Can
Corporation.
Ball
will
close a leased facility in Alliance, Ohio, which was one of 10 manufacturing
locations in the U.S. acquired from U.S. Can. The plant manufactures plastic
pails, primarily for paints and chemicals. Equipment in the facility will
be
relocated to other Ball plants in Ohio and Georgia.
Ball’s
Canadian subsidiary will close a metal food can manufacturing plant in
Burlington, Ont., which was part of Ball’s metal food can operations prior to
the acquisition. The facility produces three-piece steel food can bodies
and
ends, and does metal cutting and coating. Some equipment from the plant will
be
relocated to other Ball facilities and the rest will be sold or scrapped.
The
closure of the Alliance plant will be treated as an opening balance sheet
item
related to the U.S. Can acquisition. Ball will record a fourth quarter after-tax
charge of approximately $25 million related to equipment disposal and the
Burlington closure.
John
A.
Friedery, senior vice president and chief operating officer, Ball Packaging
Products, Americas, said the Alliance and Burlington closure costs will be
cash
flow neutral after tax benefits and proceeds from the sale of fixed assets
and
will reduce operating costs by $8 million annually commencing in 2007.
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more
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Ball Corporation
10
Longs
Peak Drive ·
P.O. Box
5000 ·
Broomfield, CO 80021
Ball
Corporation - 2
“The
opportunity to consolidate manufacturing operations into fewer facilities
is
critical to us realizing the synergies we knew were achievable following
the
acquisition,” Friedery said. “We are carefully studying our entire manufacturing
structure and expect there will be other opportunities to improve efficiencies
by further realigning production capacities. We anticipate work on our
realignment plan to be completed during the fourth quarter, with implementation
continuing in 2007.”
Friedery
said employees at the facilities being closed will be paid severance and
offered
transition services. The Alliance plant has approximately 40 employees and
the
Burlington plant has approximately 300 employees.
Ball
Corporation is a supplier of high-quality metal and plastic packaging products
and owns Ball Aerospace & Technologies Corp. Ball reported 2005 sales of
$5.8 billion and employs 15,600 people.
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 consumer and customer demand and
preferences; availability and cost of raw materials, including 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;
changes in foreign exchange rates, tax rates and activities of foreign
subsidiaries; and the effect of LIFO accounting. 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; acquisitions, joint
ventures or divestitures; integration of recently acquired businesses;
regulatory action or laws including tax, environmental and workplace safety;
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.
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Ball Corporation
10
Longs
Peak Drive ·
P.O. Box
5000 ·
Broomfield, CO 80021