EXHIBIT 99.2
Published on October 30, 2008
Exhibit 99.2
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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
to Close Two Metal Beverage Packaging Plants
BROOMFIELD,
Colo., Oct. 30, 2008— Ball Corporation [NYSE: BLL] announced today that it plans
to close its metal beverage packaging manufacturing plants in Kansas City, Mo.,
and Guayama, Puerto Rico.
As a
result of the closures, an after-tax charge of
approximately $32 million will be recorded in the company’s results.
Approximately $28 million of the charge is expected to be recorded in the fourth
quarter of 2008 with the remainder recorded in the first quarter of 2009. Cost
reductions associated with the plant closings are expected to exceed $30 million
in 2009 and to be $9 million cash positive on final disposition of the
assets.
“The
closure of these facilities will further reduce 12-ounce can capacity in our
metal beverage packaging manufacturing system, more efficiently allocate
production and consolidate specialty can production into facilities better
located to serve our customer base,” said John A. Hayes, executive vice
president and chief operating officer.
The
Kansas City plant operates four production lines capable of making 1.1 billion
cans in a variety of sizes and employs approximately 180 people. It is expected
to close by the end of the first quarter of 2009, subject to customer
requirements.
The
Guayama plant operates one production line capable of making 700 million
12-ounce cans annually and employs approximately 70 people. The plant is
expected to close by the end of 2008.
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Ball
Corporation
10 Longs
Peak Drive · P.O. Box
5000 · Broomfield, CO
80021
Ball
Corporation – 2
The
Kansas City plant opened in 1981 and the Guayama plant opened in 1982. Ball
acquired both facilities in 1998 as part of the acquisition of the metal
beverage container assets of Reynolds Metals Company.
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 15,000 people worldwide and reported 2007
sales of approximately $7.4 billion. For the latest Ball news and for other
company information, please visit www.ball.com.
Conference Call
Details
Ball
Corporation will hold its regular quarterly conference call on the company's
results and performance today at 9 a.m. Mountain Time (11 a.m. Eastern
Time). The North American toll-free number for the call is 800-768-3232.
International callers should dial 212-231-2929. 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=1987423
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. 6, 2008. To access the replay, call 800-633-8284 (North
American callers) or 402-977-9140 (international callers) and use reservation
number 21395362.
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, 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; crop
yields; competitive activity; failure to achieve anticipated productivity
improvements or production cost reductions, including our beverage can end
project; 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, tax rates and activities of foreign
subsidiaries. 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 credit
squeeze 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 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.
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Ball
Corporation
10 Longs
Peak Drive · P.O. Box
5000 · Broomfield, CO
80021