BLL - Earnings call transcript Q1 2020

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Operator

Greetings and welcome to the Ball Corporation First Quarter 2020 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded, Thursday, May 7, 2020.

I would now like to turn the conference over to John Hayes, CEO of Ball Corporation. Please go ahead.

John Hayes

Thank you, Rita, and good morning, everyone. conference the Corporation's XXXX first Ball results. is call company's regarding quarter This during contain call information this The provided will forward-looking statements. Actual from those implied. may differ be outcomes or results expressed that or may materially

company's results Some that to in in well filings, could company the as releases. latest factors or company and XX-K news cause differ outcomes are SEC as other the

found of earnings release. the If The well section in summarizing may comparable earnings also website at business reconciliation our it's available you as don't diluted on measures already operating a Notes financial have Information the our use regarding release first activities, also non-GAAP per table today's includes share earnings and be consolidation a quarter earnings and as calculations. release, of of ball.com. other

include the of our press reporting for non-reportable financials and addition, segment release EMEA new other segments. descriptions In

had temporarily coronavirus and have the impact all services to businesses pharmaceutical orders has and the we consumer well aerospace stay-at-home services government. aluminum key markets, to around technologies issued a As Countries the the to business as household world products beverage, packaging global close. U.S. provides profound and Ball non-essential environment. instructed as know, upon and

and operations This disruption across throughout and its the manufacturing suppliers significant without to first its essential facilities allowed of Consequentially, continue as the have of Ball our principal Ball designated designation customers been markets. XXXX. of businesses key to quarter operate

we envisioning and this businesses' and operate also doing. brighter ability our our in Ball our tough culture to by relied is and Throughout that a navigate in times, resiliency we our is on what future, XXX-year humbled environment. are people, investing our to while history, have

role while front has suppliers frontline across personally manning delivering the and to critical the well played and of globe missions have large support goods safely government. dedication serving been thank the our in and and the programs our like in critical lines as services of to those employees, a working of our communities Their would necessary I our U.S. as customers. the

we health well heartfelt providing company, always to professionals At also doing entire our those global and extend do of what community circumstances, to as behalf matter to services we no the the need. thanks strive our in social good. On Ball, as well, the volunteers while dedicated care

of our ventilators At donations aluminum the we with hospitals and aerosol by for of agencies gowns global our onset business. operations beverage to used masks through from protective from and crisis, operations, our the aerospace sought do aluminum and our drinking cylinders of construction part water global the canned providing

impacted be support to the an for $X future, In same active were part employees continue addition, the additional execute value operate return dedicate have that empowered stepped we areas shareholders. the of critical been consistently our able in crisis. COVID-XX our we time, I'm share to by that our we happy to an million in the communities continue communities investing and local have those Society, Crescent at strategy, in up dividend, Red maintain we to which that our to to can so the Cross, our Red and

our support safety, our business ensure to ample liquidity of we our be and company our will for from on manage there appropriately and Undoubtedly, to continue employee effects customers will COVID-XX, company.

term. controlling for positioned can are near is we the We things well the Ball and control, that long and

Beverage. Senior well and President Officer as and on Scott Morrison, our CFO; as me Senior President Global today call Vice Dan of Chief Vice Fisher, our joining Now Operating the are

aerosol with we for our businesses, on company. outlook will remarks. finish comments Dan the I'll as global and our some and trends. and performance beverage introductory key will financial metrics, discuss packaging Scott as discuss the up aerospace provide will well then

employees we due to were were our business results And to collaboration quarter IT, teams. HR, our global mid-March, global corporate non-manufacturing in working service operations, to remotely and effectively First strong. able across transition

comparable share X% packaging comparable and earnings XX%, up quarter beverage aerospace per operating increased for up with were earnings diluted XX% and earnings operating the corporation year-over-year. earnings XX%, operation First up global

continues with liquidity, to at projects. including of on available to to in $XXX execute million ample and quarter, hand allows on company annual lines. with million The strategy cash strong cash uncommitted This, committed operate our million us $XXX the end multiple in in growth lines another stay and flow, track $XXX the addition in our

global were quarter, up X%. the beverage volumes During

Our announced facility in increased aerospace intent manufacturing an aerosol XX%, and we backlog won-not-booked aluminum Brazil. our to acquire

performance XXXX know is on our creation where our the never culture of we what's know going, are, value year-to-date deliver in current for growth we're tenet our navigate who to we company, we resiliency the operationally And As and and we our and has of we organizationally the team core shareholders. long-term know clearer, been reflect equipped important. well and environment

and across visibility And for In opportunities short-term remain various the needs resilient, changed. our intelligence, and surveillance, long-term on investing government for good products customers has and demand intact. strained our virus of the not the times bad, and for near-term reconnaissance strategy due is has has stronger. consumer Our been remained packaging never outlook various its our always business while the our economies, growth to impact in the

will and exist limit imprudent businesses, today, any facts, near of Due it'd and state the risks or opportunities Dan will to near in we for of comments we of extrapolate as both dislocations our with the the including end to to and they prognosticate the the future our see current volatility to markets term, unwise Scott precision. and regions degree and as discuss date.

up have beverage for for and supply quarter Now, North surge America have global due we to the discussed late grew a would not first conditions higher, tight quarter up that X%. was volume X%, include, in consumption very the overall North at-home and highlights previously. even America if key been

the being March Southern meaningfully, two and with up European X% months, in X% up the down volumes Europe after were countries. and were first Nordic

the trends and were after the with being in digits and more months, and down, been remarks. March were these around Paraguay. South give first April mid-single will in up trends significantly particularly, his we've Dan color seeing up in Brazil two American volumes X%

continues and operating Our to aerospace earnings. execute XX% well over in was business up

continue not to beyond short intact. and all believe of environment, despite work in most, remain and that win long-term the business our current XXXX if goals and We this for

aerosol business we aerosol Tubex an aluminum plant quarter Our experiencing in acquire trends the after and manufacturing business to experienced, our flat beverage our aluminum from was relatively can intent for Brazil. that announced similar

this We close to quarter. transaction expect the in third

plans. sports of manufacturing intent to XXXX dedicated we've for and ahead for to entertainment Construction and next first used facility the all track. our on And continues outlook retail for and strong, venues, executed for with our major cups beyond. of accelerate this letters also go-to-market our aluminum be Despite XXXX remains actually current hiring time curtailments strategy year, our of

a In if even us. quarter would that much summary, have had strong had corona hit not we been first stronger,

America a Europe. Our second extent, quarter, like most in in companies and will particularly, to be lesser South soft,

half this of be and impact over believe remaining the year. will our to at timing the time will opening the our grow the of operating of upon it overall that strength obviously second overall the this earnings and the dependent virus We in businesses year, the of economies us allow

all at to for colleagues our you of here caring one Ball for Thank another.

customers, operate economies we listening to good to support continued truly circumstances the control, Your our you extend communities dedication well hard of safety wishes inspiring. we and where our work cannot all health. for your your our the in of and global We is and and face

turn that, over I'll with Dan. it to And

Dan Fisher

to our And customers, sentiments. logistics addition I those echo in collaboration amazing HR and professionals. to maintain to our I This time, environmental And for safe. our suppliers least, and John. both not keep our our industry's family an Ball ability Thanks, missed and and applaud a teams, manufacturing I they thanking Last is to health safety leadership our certainly demand. want in our beat providers have unprecedented consumer not thank their have to and serve to also helping

for I operational America, customer our to year, demand to as our serve introductions market capacity of in North serve and Ball additions, My choice. contracts previous product ability advance and a growth, call, aluminum partner comments still focused new of beyond. progress set new and cans, training during growth, our excellence, to the shifting growth in stage sustainability XXXX this position to water new Earlier on hiring supply,

to Those additional energy time near-term adapt safety external new protocols. and to have forces focused

partner as for Our packages our European each both important, to positioning those recently of chain team's science-based well execute We our of of Ball carbon Certification industry achieved not our operations, desire on to these firsts initiatives as ASI wavered. to and sustainability. vitally value our and also important across and announced choice as a reduce emissions, our of has targets approval

to all which under and benefit information and much possible, my to long-term we near-term the on continue focus goal environment plans strongly our the will from benefited encouraging packaging even pandemic. current into is from entering as feel you as growth, for sustainability while to operating provide we that Today, aluminum transparency environment, our tailwinds of the prospects

corporate have of management, aligned the colleagues support safety everyone business with focus perspective. kept chain calls global and collaborative. onset our with sales, teams pandemic, operations, teams HR our the Across and nimble been daily operations, Global From supply best possible our a our outcomes regional on mandates customers the and supported and local from informed, have continuity and and and Presidents, for

for one another, managing practices cases when periods shared our of a chain, supplier downtime operations. align supply supported Across in customer brief have our or necessary, procedures we when best experienced COVID Ball have

the mend at that the employees our are We thankful impacted following the work, on or are back recovery. virus by

of well shifted occasions Today, led particularly on-premise by supply/demand the we consumers surge channels. beverage at-home packages disruptions America. and shopping bulk convenience occurred complexity product. as to store and to in as can multiple that able a This North sporadic manage channels In growth, and varies short-term tight demand, in off-premise those or up behavior Consumer stock channels, North are America, at access continue our as tremendous region. to to operational incredibly the conditions,

to challenge capacity additional the get the up. largely expect been such on-premise consumption, The demand, has focus challenge the such has that While we online. volume supplying not additional of is traditional capacity coming that is somewhat our continue in in and adds time for more will biggest us our for open short-term. trend volumes packs faced we the home from begins to we April, be until this generally can until diminished higher-than-anticipated The

to and where Russia, in far attention areas Europe, are seeing for continue, consumption due are curtailed beverage quarantined remained travel In other in restrictions. we're the what Moscow trade, consumed impacted April, the like on-the-go later usual those where of trends to the turning been further be our relatively throughout largely patterns and due than most were In cross-border Europe. we Southern than might have relatively tourism volume regions on-premise Nordics transactions safe Turkey, where Europe, the quarter, including more to containers and normal

saw the South smaller slowdown In grocery in closing early XX% an two due cans a saw last to America, through across the in stores, followed context, canned give and we seasonally To Brazil March Brazil beverage where convenience gas significant of of the the in of stores, March we strong shipments over temporary XX% Paraguay. in of decrease are approximate and weeks many by purchased. region, alone, stations demand

In April, seen earnings Chile perspective, more Ball's continued, some although and to to off-trade. XX% have given are as two that stores have Argentina up the the those much closer weeks, purchased for From performance improvement segment nearly XX% of have past cans reopened. an trends segment a XX%. of North American XX% these been an decline operating we were approximate resilient, over

contracts, up new partially and sold can with were mix by manufacturing the through volume Favorably of benefited hiring associated offset associated certain ramping improvements with XXXX in sizes channel. across convenience growth store and network customer operational the half second negotiated quarter the lines the costs and

respectively. and to in second beverage and plant the additions of As Georgia facilities Worth, come first our Texas of in line quarter previously XXXX can in Glendale, manufacturing line beverage are as Rome, Fort specialty on online as announced, our the XXXX, well new track can half two Arizona existing

energy and our today, in half XXXX. most second the America expected and trends of in an at-home plans category associated costs which in forward the limited support growth North in start-up self-isolation the across across strong momentum protocols with I moving still has April, we're C-store beyond. traffic Northeast needed, As and expect the drink with with to pandemic in slowdown Despite fully categories XXXX consumption higher earnings when of

our segment In negative colleagues We volume and across country mandates. from despite during demand nearly the resulting were trends our to growth quarter. thank while the various the Italy, quarter, across ability their operate EMEA during the pandemic France, managing dedication the segment, continuously Spain support our Europe we and facilities able in X% to for

in volumes single-digit declines Egypt, and Russia, remain Europe, Nordics upper the saw and Turkey. strong in Our while U.K. the we Southern

Turkish segment EMEA region remain and leveraging focused due translation late segment's segment. our integrating opportunities and warehousing of quarter to the shifts our of by in are due First costs slightly We headwinds, earnings the Egyptian higher earnings quarter and euro freight customers' add filling into growth long-term million lines. to intermittent associated installation the demand plant were this preparation operations existing to facilities, and in downtime absorption for line X network and down lines additional with sales can to on

our our for near-term reflect being segment certain EMEA other Egypt have in other existing of countries, commitments. and facilities shifted and Due right adjusted between into accordingly the non-reportable and EMEA quarterly impact have will segments slightly and Historical the Cairo, Turkey, to to non-reportable. travel comparisons not been customer Manisa, company's to the out recent projects consolidated restrictions European

Turning to American our Southern segment.

March. Even Brazil second were is quarter slightly, operate, South to with segment South First and beverage year-over-year. the in Paraguay abrupt and nine of earnings expect largest one continuing in we in each driven in Brazilian earnings cans late our meaningful mix Ball Paraguay. America and plants regional and Chile, Argentina quarter our contractions in the customer to by with plants Argentina down be operating in demand producer Chile, American down

and is our appropriately It costs outcome. our the is staying to to quarter, a slower and this best that important and to note managing close team seasonally customers our assets is ensure

Brazilian and and forward, see ability look homes, we gas convenience to we closely monitor As consumers make beginning their are purchases. stations their reopen stores will to near

by The and The be manufacturing non-reportable. operate beverage were downtime company's and continue early other to March Saudi reported impacted in to results Myanmar, India intermittent late continue in can and plants similarly April.

million our business. a XX In P&L investment up addition, to stand other includes aluminum cup

global In majority in demand operate. continues we can the summary, regions momentum beverage where of

growth and other actively are and our anticipated teams are in skilled Our North base across hiring our labor supporting our maintaining operating support to focused regions. on America

again globe. teams around you of our all the to Thank

it I'll over to And with turn Scott. that,

Scott Morrison

to India includes earnings Please Thanks, offset operating Myanmar, per the Dan versus non-reportable Dan. note that diluted Comparable first quarter $X.XX share XXXX. $X.XX other segment were on commented quarter. XXXX the in in corporate results can from costs our changes cost undistributed new aerosol our beverage aluminum stand and in earnings Arabia, plants and investments up aluminum by and Saudi business. other

and in Details release, be are the also additional will provided provided XX-Q. today's Notes our information of in section earnings

corporate First quarter offset headwinds exchange share shipments, higher and aluminum reflects and aerospace strong lower effective rate. comparable global tax diluted a aerosol earnings lower a beverage per solid costs, foreign and count performance, slightly by share

of can Debt cost and low revenues X% aerosol out global aluminum Due flat sale been to sheet assets, lower of healthy. Argentine the and steel can pass-through has the revenues. Ball's growth rates. despite is termed first beverage beverage balance XXXX were at aerospace quarter and for the of Chinese the business higher

XXXX. We debt until maturities have no

XXXX, Our liquidity near flexibility focused credit agreements the and out go we ample and term environment. current in until on have maintaining

Year-to-date, we seasonal sizable metal the first which build, in typical, experienced quarter. capital was the largely due than timing working our of more payments to

of year raw support to initiatives to in of somewhat $XXX Given XXXX cash a them, we longer anticipate be full range growth our and ongoing material investment capital the million. supply chain a the working use

of to additional mind. we metrics keep XXXX, key As here are look the some to in remainder

costs earnings in million, range in year now effective interest in year $XXX expected of XX%. rate year the of non-reportable be range and be the million. of range to full will recorded tax the corporate $XX other are will expense comparable Our in full undistributed be Full on

Our XXXX cash continue strong. from operations will be to

facilities, investing capital construction and in our also be aerospace completing CapEx in manufacturing North will working can aluminum capacity America, facilities. growth We expand to on while first production beverage cups

of $XXX full approach XXXX year we point, may this CapEx At million.

the focused mentioned always good return shareholders. prudently capital XXXX range working Ball now in the I to cash million. in Given value conditions Brazil being business above, conditions real-time with been on expect balancing we free challenging of flow our $XXX has consistent our of stewards in and cash and investment near-term the of

and strong done sheet XXXX. becoming are flow, returning dividends, always, our on to our we will managing just we company a Given cash EVA long-term we consistently our Like the returns, the balance effectively as quarterly have with maintaining investing public on value managing for in since appropriately focus eye long shareholders. term, business an our capital

to I'll that, you, With it John. back turn

John Hayes

Great. Thanks, Scott.

demand India, driven global by Europe. saw business up in double-digit in mid-single-digit quarter, X% primarily in and declines offset volumes North aerosol aluminum strong Our America which the

the majority With pharmaceutical aluminum team consumption care care aluminum supporting to busy our needs. packaging vast and and packaging tied aerosol health, personal been personal of has at-home, aerosol

few plants that downtime remain quarter, throughout experience do busy we While intermittent our second could regional us. the a affect expect during to the quarter fillers

we ahead, the to geographic facility and close expect quarter. the acquisition South our reach third America to are aluminum Looking of the business' into aerosol expand excited Tubex in

our addition, continues and and growing including products, beyond. this in from reusable We attract business looking customers care a look sustainable, to bottle performance XXXX reclosable for lotions. improving forward solution and new global In to Infinity for shampoos personal innovative interest and

performance. remotely, business milestones and has approximately majority done completing Our colleagues XX% national our other supporting the business, an project earnings of to essential and our and an security, reported team job revenue operating aerospace our deemed key business, defense outstanding working contract business Similar teams organizing of remotely. global growth, packaging shifts, been and services. has transitioning The from resulting to solid aerospace program

total business aerospace contracted the quarter, first $X.X the backlog during billion. addition, In was

we XX% impressed execute since to facilities XXX take ability we new Their build and aerospace and this are to XX%, In increased XXXX, and continue be our all is to headcount increased into to on culture. Ball their in seamless projects by employees exciting manufacturing on work by and and XXXX, budget. infrastructure, out testing backlog on of continue employees. our won-not-booked over immersion over track our appreciated. the With Our business, enhance ensure Ball

win indications contract excess profitability over given will recent of that next the business be of years, We scale several grow continue per XX% reflect able our in current the to new type year work, and and awards. to aerospace

prospects are While opportunities. we we short-term remain world our long-term and long-term on with experiencing the rest dislocation are and bridging bright, the of dislocation, the the short-term focused

be aluminum lead invest aerospace, and significant growth and positioned to shareholders. to continues sustainable uniquely delivering in Ball while in for global packaging value our

we and our XXXX, to to driving forward look This growing at share to per business per deliver year XX% to achieve dollars of growth changed. on least our capital base. Beyond growth our EVA diluted not has X% X% long-term invested of earnings XX%

Especially for are the we during opportunities times, future. our successes these and date thankful of to the

what our long-term do best our shareholders' We continue for customers, our Ball, success. is responsibly and and our to will communities invest employees,

And ready with Rita, that, we're for questions.

Operator

Neel [Operator question. comes Instructions] Thank Please Stanley. Morgan proceed line Our first from from with Kumar of your you. question the

Michael Slutsky

actually you Thank Hi. Neel. for the for details. This Michael is in sitting Slutsky

Brazilian of you maybe environments, gives recessions what macro from on address, and seen past had? XXXX Just based Brazil? more could consumption sensitivity a that rebound have consumers you in Just you terms confidence demand in in late weaker

Dan Fisher

channels today, on consistent year-on-year. our running sit The second And appreciate it's in candidly, I comments to at XX% in weeks. of the is in is but neighborhood but opening up city-by-city, state-by-state Brazil. a question. year, somewhere last over half what least lot couple the to market the surely in happen script, seen year-on-year. that, off, Yes. closer be here going we in And with my have XX% prognosticate as the depending slowly was back to we I'd the on of the off, of leery of exactly business,

marketplace. close up. momentum some but gauge of the is got homogenous brewers fill Some as it the to not we're certainty of they've scattered, really of positive weeks. Brazil to we've our soon root, as up, that a we operating It's opened the these And continue build can over said, being paying channels any level started most attention some year. are that, of them, to the and of still as take can, last very this we second opening and quite couple hopefully, customers, before say signs to That see with here have half

Michael Slutsky

follow-up, accurate? growth sending the that Okay. pandemic on Mexico? guess. the I Yes. impact of then are it's cans environment of volumes. about from you And there? planning Are any America Mexico That's from you kind to helpful. seeing mentioned North you I into And that Is just think in any segment about support one XX% still

Dan Fisher

– Mexican our end Yes. not didn't comment manufacturing percentage has of north. any Good at just slowed early go question. and We're declines beer The because we on does year March, that of largely April, some the but have oversold there, North Mexican in indicated laws been started environment. the put an because your as you've in we by government in America, of place the comment, the

in still oversold We're an environment.

in ship some run beer opportunity production and of CSD declines opened more really so have up the to for north. us And that the an candidly

now. And that They're those full. mix, a absolutely They're America than beginning anticipated year, keep SKU as to are all we're different in the cans but we right shelves plants running different an the the at North using so of opportunity on label running full.

Michael Slutsky

helpful. Thank That’s you. Okay.

Operator

Thank you.

Anthony Our your of proceed question. line next comes the from from with Pettinari question Citi. Please

Bryan Burgmeier

Anthony. any This the impact of expect in is And those of into Bryan costs do total and to the What for freight, bev, second in as actually integration? sitting such quarter? onetime EMEA was Hi. you carry costs the Burgmeier warehousing

Scott Morrison

EMEA? In

Bryan Burgmeier

Yes.

Scott Morrison

first quarter And America. some the that in in some the the be the mean some second but think but great. plants, more will more I I hopefully, $X quarter South not in quarter, will in And obviously, things get third and to second million. with maybe normalization fill think costs then I The quarter the downtime were intermittent back of great. we've had EMEA in impact the impact probably

Dan Fisher

some in of the we in of XX would cans thought having were weeks growing every year, heading what I and out-of-pattern first Europe. right year, much freight, of our X were not in the into We major excess contributed locations – regions, the say, the like of we Yes. the that to typical to one in

the demand, we as lot foresee I showing the costs up, Given pullback sit in today. here in those second specifically, quarter can't of a

Bryan Burgmeier

can as Great. summarize that considering Yes. That's a some if helpful. beer follow-up, think capital your the economic do of customers you of it's now, smaller health And could perform financial those impacted, than had working anticipated? they the worse just right customers? conditions you possible And be craft

Scott Morrison

something got customers. watching very lot of ones, really We've beer we're Yes. closely. cash Obviously, in small we have of actually craft of lot they're the kind a advance. A

perspective, credit footprint. we're with their of a that some from that, looking larger opportunity So be ones to honest, the exposure grow credit an at as isn't this there other to And really are much exposure. working

they we're of with situations customers to their help and working grow selectively think they business so where that. And our can in be supportive

Bryan Burgmeier

Great. Thanks. over. I’ll turn it

Operator

Thank you.

with your question Please proceed the Baird. Panjabi of from next question. Ghansham Our from line comes

Ghansham Panjabi

is hope Good well. Hi morning everybody guys, and doing

John Hayes

Thanks Yes. Ghansham.

John Hayes

America led region guess I started How Brazil, well. thing you as for the region for in from has now. just also, an this Europe I have the And many along And aggressively. an maybe, decremental and back half event on destocking, torrid the XQ? appropriate and seen growth focus your the now abrupt cash I what's for of March big to supply think assume, obviously the Yes. XX% that you levered the margin just back And South on mean same of slowdown. chain? comment are to pandemic use came I much mean, do for to customers decline inventory to quarters

John Hayes

Yes. had when of slowdown, a effect it was the build abrupt then closure inventories second there things an Ghansham, this try like other beer, was, take our the were Obviously, John. as the customers has because really Dan a for that of where sold. had. start lot products channels – that brewing half, then and example to and We're In is but already I'll such that. for ripple-on that. these mentioned, and

beginning about as throw second because said, and at go hesitant imprudent. to quarter, Dan talk that's numbers and improved. XX%, any We April, had we the As I'm started it's off just out of

improving. line the trend So is

not more beyond, as but be the we a don't as I And today, and here. will second the And – we We up sit in bit we in Brazil. expect open fundamentally quarter, the down about do has changed. forget here go even the world let's into much to And in think second longer-term half. little meaningfully XXXX prospects

And so that's plate. in long-term really we from bridge my comments, dislocation our still – this the is why short-term prepared about opportunities world remain on the to a the that talked that facing is

Ghansham Panjabi

question, then just – And Okay. on guess, second for cap my free I working on cash flow.

last basically, cash quarter, of you said flow. $XXX free million So,

really saying be capital. $XXX you're working delta Now million, and the to seems

statement? the based you for is a So regions, I that does that then across variability more imply full-year fair that the expectations are or intact? less there's but mean obviously,

Scott Morrison

on of cash flow. lot moving pieces a free there's Well,

supply talk QX larger-than-typical had first of up in in the a payments about to do We with – North as and before, additional the And built a as to used then mentioned first. inventory in metal really quarter. working and than Most metal So, let's have. growth longer to got that support I've the we've side chain had in QX America. the in QX build capital we we timing of

And so that paid big metal that was in first quarter, impact. for a when we

being essentially shut also world up instances of various We've that globally governments held taxes around are down. by VAT several had the

And as just we've is we're issue. year, about the go think we the to the So, the that with – in about would taxes it $XXX in call, timing our or build a business, then And see which million we year-end growth about waiting first of through got VAT be use million. receive, of $XXX of working the I said million. capital I XXX

thought a the of little bit at the larger than So, beginning I year.

think a $XXX can to standpoint, think And standpoint. It cash back cash CapEx, and to some other from free from get million that positive of flow that of things $XXX then a million free we free we found still goes we cash flow around we will be flow.

John Hayes

only earnings virtually on The is have be softer may than softer. those John. I cash segment think kind how operating into we thing translated from for of Ghansham, I now. a add and know obviously, this I'd And flow a free flow, three earnings just large be It's think from track. right cash an every and is but don't we South as well. America thought perspective, free bit is when we little And Yes. Europe South much months America ago, will saved

Ghansham Panjabi

Yes, perfect. Thanks so much.

Operator

you. Thank

Bank the comes line from next Our with of of your George Please question. with Staphos question America. proceed

George Staphos

Thanks mentioned all Hope morning. longer-term question. details. you're of well and a thanks in significant When disruption the doing up Ball you Corp. to I for a COVID test. think you’re with to hit picture And John, for you economic remain Good I that well. wanted would from COVID that the stand seen bit obviously standpoint, everyone. an as Hi for longer-term confident we've

a at versus you changes be have behavior, value glass, at of have specifically comfortable show will have competition more Sometimes, rate but patterns. where And I a way that see follow-ons. then wouldn't to same? in the for that returnable from of glass, American least the in what a consumer some of pantries data in if purchasing you the continue the on sort couple returnable period, cans up they've know in markets makes consumer any that And non-North you'll the grow in consumer cans? larger been of consumer comfortable I changes you don't growing, not always, makes this, you what will

John Hayes

Yes.

Dan. it take may to I me over turn then actually and that, Let

that. So, couple of there's a embedded in questions

dislocation. is the and to think is you a economic not forget, first one I have – look through this let's – significant

XXXX of have them, another and not was one early XXXXs them. We, ourselves. in as society, a through that Let's well, kid was one as of back gone

has and over gone business. the XX, back looked XX years to have past our We at what happened

And good just generate XXXX an of it I'll back; everything to to it then we're here. bounce cash X From cash a a did we volumes, perspective and perspective, earnings free but from had since had quarter, experiencing quarter down a on We back. flow continue focus closest bounced what you was flow.

which from can is question, answer we show can that to seen perspective gets context and point that to – that's we a And are facts so some particularly give data point – that to to from – second winning. also sustainability you one have your there the

and And category, Dan the increase increase talk of had you liquid that In outgrowing things. at volumes I North growth, and the liquid those about of means cans the volumes, taking share. in cans. then can so overall overall mentioned every in are major overall look are some America; cans

in can a And talked nonetheless, is Southern do Europe. different thing than doing the but well. You we Europe, before, Northern are cans as bit same Europe

with also do to with it [alternate] to important know a I think it we of don't has life. That good life. do the sustainability, but and a is shelf shelf because have has they products,

it and been America, conversations our with we've particularly to as the based about cans to having question our relates your customers upon about are In of South relative returnable, facts other growth packages.

it's it's of cans when all bit – overall a appear bit the And with what's cans, but sustainability, happening all in at trends taking overlay share. with to then volume you conversations grounded on fact, you grounded but of a fact so bit and our it's that liquid of and look it's the a customer, be it's

do to add? So Dan, you anything have else

Dan Fisher

would are manage those with even we're can with forward to or George, their give customers the you that that line moving more expansions customers. I negotiations with line confidence the investments. faster can most in that that with investments, we're having them conversations support and having point I our looking and we're when they're are we're ahead to line – to and and frequently that say, flow they're of real-time those these And that promote what having trends out customers so in going to make indicated sure cash with to sustainability getting we're applying Scott those going and what them, conversations those we're not still as consistently our intently, with push. And to

George, anticipated if least So what now, good, time. for better, at I would at this than not as have it's

George Staphos

I Dan, you appreciate color that's from that. great. all on the

can but What it, the some obviously. Or would How this about to EVA Second issues then question, confidence can I directionally on than it discussion EVA said you you the obviously, trade looking you over. I’ll it chatter – and And – forgot more ability given and we're helpful. last been about as can based you said, Thank year get supply – think for don't U.S. earnings Obviously, grow more recent turn in exactly you reasons, way there's about there? shortages I EPS between Is what been, the question color that a that? you of There's growth on more the discussion do see quickly there to my to you saying over. dimensionalize you customers scuttlebutt, chain. other some I'll chain the any continue think be company supply that? well. growth are guys And feel different and Scott, again, at, recent about you from the dollars COX said per turn Do war year? sheet and you what your share your any talked see China. dollar how there this

Dan Fisher

Yes.

we've some the metal inbound some Let metal it Obviously, relates the from to me China. try address tariffs got of to on piece. temporary as relief

I think XX and significantly. in demand to with to story were fall off sales falloff relates on it steep the larger here we is Boeing and that the as – pretty ago their Airbus, days starting where versus auto even

an I think than some there available days sheet to willingness can XX convert lines there's more sheet was ago. or lot to can awful

did us XX so looks it much standpoint, And supply like now better from ago. than a even for a domestic it right chain days environment

So and into step we're we can – that.

George, COX, now bit absolutely a chain give I into that will week something issues supply step right can in that just this me in early theory, for but now. not any shortages, meaningful some up And conversations right our it's waiting to and COX as I was along as came into – of players, so. we're more. nothing in discussion, two a dig those to So recently CSD as not I heard little with large the have in We it The our something. supply relates way a

Scott Morrison

nice XXXX, earnings share in in first per growth On the growth quarter. I think, the a George, we had

in second From grow we in back EVA EVA dollars I we think quarter. year. have think a we an in back I the of think will half that in not grow earnings I give dollar standpoint, to chance the XXXX, XXXX. then And do but the we'll

last taking the year and Given on the and confident think is year but hit investments made this Brazil, EVA the we're earnings don't that dollars long-term in intact. that I we grow still this year, we're

George Staphos

Thanks the quarter. Scott. in luck details. Appreciate the Good

Scott Morrison

Thank you.

Operator

you. Thank

Our Langton the JPMorgan. line with next proceed of question. Please question comes your Tyler with from

Tyler Langton

and doing morning you Hope Scott, good all John, Hi, well? are Dan.

John Hayes

We are. Thanks.

Tyler Langton

recently? a in North America year with guess, COVID on at-home maybe, growth about I you. of and higher from quarter, weaker question some guess, North you of offsets were aluminum potential consumption. higher also we more sort with with could sort a aluminum just sort I And scrap had mix changed talked bit issues, now those last being America, inefficiencies know little from are guess, where inefficiencies I bit. you the behind about behind were and have just things of that and the of from the idea a little Just the just, issues level the you Obviously, I scrap of last talk

Dan Fisher

Yes. Sure.

I'd I X think I in we And effect, made that behind contract last issue scrap at year, think comment calls. we that that The say year. last of saw issue us. a we a this resolved XX% – two the least the to is majority largely the Jan started

line the productivity improvement in and we saw because first the in quarter that of around scrap see consistent will you for year change. performance the nice So contract balance of Yes, American North did of incredibly They absorption reflect even our performance. job. sales of in really And the some benefit with an a nice some of that strong out we business. saw that

of number that think, plants. movements signs the in quarter all records was, positive in two. plants The of seen I've So all of a production and lot had positive I but that our business across

And that galvanized Nothing of So right the their focus regard. of on on took changed pantry of North with these absolutely lot in projects a we're to need QX inventory April. first I exited levels things, do that of fact, place the phenomenon the in we've We part and that seeing some America. the QX continued in and had in think there. really because executed stocking that team ever lowest has we in get benefits has

So is employees to another do That – the good the are but you a fly. on-job ways into quite The on facility learn get Worth, track, will biggest a challenge more not with training, slightly can distancing lines we're spending and on so social go. is really candidly, they time be to in news Rome, but this those I'd typically If North time can run we're of in and maybe on ahead, XX very trying been so a so classroom, hell so ahead there. lot to or XX online really – creative up got, get bit if a training, thought progress team we folks projects, pleased there with has virtual the running, Glendale, Fort multiple we've the said overall on to say training, trying of fronts we'd anything, the job I where and ground at they hit done I to America. a little speed and

John Hayes

history. completely much million on or add $X it [indiscernible] And this could Dan. mean the the is start-up the related Mexico at had so just things better. I headwind minus peso plus Tyler, Yes. all devalued costs just my agree had We John. ever rate have that. million of the $X of kind a been Dan million currency we fastest of had in range in I there. I'll happened $X mentioned start-up of everything, because or with to

slow you the abruptly there's had down being we a year-over-year a talked quarter about business channel headwinds of chance those quarter, on first a you to million why it going the see year-over-year great and with a So, had about March, month headwind can in convenience in that, in that – in work at slowing more business. of look having than there various up seasonally of being mix we and when addition that Dan of the talked been the lot $XXX

Tyler Langton

metal. going buying have elevated as metal? where something chain No, and more more that Perfect. think have mean forward, mentioned is the more sort of of creating helpful. longer-term the on working of I a it you is then of guess, sort enough an longer where capital. making hit – of a some know should chains longer onetime capital supply sort Okay. working I this you're sure Scott, obviously could we you from Or was And that's basis? about impact supply this I on

Scott Morrison

Good No. question.

our we in The more first given business growth we we – one-time. were make were impact had was quarter North seeing plenty of to in a sure of We metal wanted definitely the America.

of the So, quarter, we say would our the quarter. fourth in kind we really I And first paid ramped and That's the take third capital for built and normalized. into in that be year metal is up of supply is would a I've for that chain That accounted working said my in chain where million. this number number. longer use longer supply $XXX of

John Hayes

XXXX, don't We upon beyond growth, that's think a the can't anticipate I I And depends of onetime. it Yes. more – think right? obviously,

Scott Morrison

Yes.

John Hayes

stars we now – lining and probably of are auto as an aircraft the up. because more online, what and preference which we just But with to that kind always said supply our declining, go opportunity of been forward has Dan domestic commercial have bring of

longer-term probably of from a think I perspective, it onetime [use]. a is So more

Dan Fisher

Yes. I'd agree.

Tyler Langton

sort of Perfect. then guessing weighing just that kind margins. in And that's on sort question mean, the of CapEx, just that terms last hiring strong – on And – continue And you you're all you're to guess obviously, spending business. of see aerospace. I'm to growth. Okay. doing I of I the still and still grow

is CapEx bit? a the what way for sort start little to and all post-XXXX, cost – should ease Just – in a of about like think hiring XXXX to there looks

John Hayes

get issue cost, the but little timing the drag it growth, a of from mix the that the remember of of a day. a but at just we business, it's the bit upon Well, end really depends

XXXX is the in So, I wouldn't focus that. too bubble And the now. much on right on big CapEx,

fair will five into next But the plus it down. business. go ramp for As XXXX, we're capital of that putting we years a amount in

prepared now. So can said in work seems decelerating. of �� that right I expect going as remarks, I tremendous the on is not well. quite Work We're down. come my would I bidding And accelerating, business to amount be to

confident remain grow next about And feel continue I can few years. business. that percent kind good that of And that's to so the we that, said XX-plus over why business we

Tyler Langton

much. so over. it turn Thanks I’ll Great.

John Hayes

Thanks.

Operator

Thank you.

with Please next of comes with proceed question Viswanathan line Markets. Capital question. Our RBC your from Arun the

Arun Viswanathan

kind Thanks Obviously, I morning. for Good of but taking just well? firstly, this repurchases Hope well. priority, share the year. I plans you all probably reiterate question. Thanks. – guess, ask for could just cash my Great. understand you wanted cash the first Thanks. to your about as are capital return preserving position is on

Scott Morrison

Scott. in liquidity. QX for acquired on focused is seen, This stock and before We suspended and the really then we of some time repurchases Sure. impact COVID the being our preserving was

liquidity ample we're have and now capital We committed build. credit. And seasonal working really just our at

will the year, better. and So, rest the of liquidity move generation through cash as our our we get

flow. still $X.X of expect billion free generate cash we to And

progress to we'll the at the capital we year, clear, through strategy of our year. me let to shareholders back But we value opportunities So all. has half more not be see in as return changed the allocation if have

Arun Viswanathan

I And for I just to Thanks that. to America. get back Okay. North wanted guess

two here. So questions

and last guess, up some returns levels. has of been I story, and year catching year of to resetting prior pricing this contracts desired up First, to part these the inflation aren't the really that

a clarify, to little of face a expectation, just tougher again, guys that expect I than little should should position maybe your do I sold North second again And year. from wanted is percent you just a we America, volume because could that evolve the and then different, comps so half bit to continue? industry the growth So, guess in what secondly growth. in the expect volume do out on explain And just you you

So how I Thanks. volume, North about guess, price think we in should and America? both

Dan Fisher

Yes.

in terms X% in going our on ability particular. not it's somewhere North expect back largely And would the I X% expansions execute line gave the to half that guidance contingent short in much for these America, I in to XXXX, we the the of in think be year. changed growth, has to neighborhood. kind of term, of

think problem don't lines. to start-ups those filling a definitely I we need fill there lines. into well-executed those be and So, step will

for about quite in North volume terms feeling us, the as I year we in of And comments, I'm entered moving thing what my America. in So, specifically the our bullish somewhat mentioned quite channels on that's around the with only can the open, at-home with change and on fully honestly, More is side. historical not Ball's obviously multipack C-store the mix. that of mix packaging some –

Arun Viswanathan

couple view change lot into all a of last a change has is growth, to structural something is profitability for potential i.e., from revert you should of as think do that growth that driven the we So years, can at XX-ounce be specialty that we really the non-XX-ounce a that And you standpoint? on our back and is? growth to medium-term incorporate

Dan Fisher

wish really in some lot to awful right figure industry. of it's think great patterns. But really try the out an consumer service the sociologists channels had I a the all payroll to on And we in behavior are what candor, tied folks I question. C-store now to purchase – that

in people about multiple think So, working jobs restaurant space. the

more open. back, be there to change think employment, will tied will a be there. impact pattern, watch it in come I to That's be the and don't thing it what's they going to to will the As tied consumption be but

most of to trying moving folks innovation to and can. folks into on on – because Right forward. launches. get move from We're innovation a increased customers the bullish new still aren't the going cans number but channels velocity, I'm with now, are engaged very on multipacks away of the product to just

will the don't stretch a I permanent that think trend by of imagination. So, any be

Arun Viswanathan

I’ll Okay, it over. thanks. turn

Operator

Thank you.

with the your Maguire comes next Brian question. Please Sachs. question of Our Goldman with line from proceed

Brian Maguire

well. you everyone. doing Hi, are Hope

obviously, First a to just question, the and wanted XX-ounce to standard question, can I comment mix probably that follow the stores. through in shifting club on lot more

customers help impact change other? think as do mix And or between the changeovers? it's many margins materially to and of just lines out your the SKUs. eke production having of about that and then you From on your not view, standard about bit running on more little Does talked rationalizing one whether of own plants point you sort throughput as capital. a You does profitability, more returns it

Dan Fisher

it's question. think great a I No,

a – you're from a sold So year-over-year entering at out, every single where period sort line you're we're comp out. if this perspective, you're looking sold of

that have – So, that XX-ounce just XX-ounce, a If and hitting period. impact a I'm versus XXX% first. have I XX-ounce, line, the mix an during running will I'm XX-ounce now, question

We will I sold the there. mean – out, volumes but we're

as Your it to have relates to, other ability efficiencies. question gain do the we

running a make is by labels stuff especially from we've of And right lot labels now. benefiting some when standpoint. our – from a think bigger that full. customers And I you're a To greater shelves, on perspective. an willingness seen efficiency an run they'll difference, historical the us fewer get

continues the of may growth as that. year. to impacted So, And be the that by balance my that number hopefully, continues, X% through X%

Brian Maguire

Okay. Mexico you talked then about maybe cans to little some from move bit And the north. a opportunity

move any expensive, sold not any U.S. freight you opportunities I freight further see the going you'd some is wondering that, even increased obviously near with but Just to stuff then how anywhere Brazil from operating to be pretty running out given if along normal know – there the some rates, north and to are? or

Dan Fisher

– a question. years we I just over – and pricing. were just – someone I mentioned think think great I think that's the was And I

that I chains. supply a us keep things our over last on think, really couple onus their puts of parts the in to customers years forecast of job manage our One way is to mind equal to of appropriately, the have restructuring we a in here contracts the solid and done,

risk. freight we're at need on doesn't anticipated now, benefits beginning of Mexico, more year right the ship And so of the if pulling in for lie from we of the one you're And to the sharing us. that that burden is than instance, you and

And of cost. a price, so it's but relief it's not

the so not to more cost yes, more it's it's supply cost, And necessarily Ball. base, but

John Hayes

sense South to about make are active with is it's discussions question premature cans perspective your certain And but from on a Yes. to and it declare Brazil, we America there. anything from customers good economic one, bring an up in does too

Brian Maguire

Okay.

will real wondering be second said cause me. will to EMEA, factors digits, growth year. just the quick that then On what flip just for of to but XQ down I in mid-single the one, half you last think Just

up I notably in the it year. be the second you or indicated of nicely think should half

Dan Fisher

Yes. shelter-in-place everything with. what to I be and distancing. mean needs on It right social happens depends couched now, all most rules in

can back those to to what fundamentals would and folks it's As in patterns those grow, our hard Europe but suggest until of come return off to as know looks can underlying getting and exactly change, the like. work, normal purchasing we business that fundamentals

Brian Maguire

Thanks Alright. much. very

Operator

Thank you.

Adam Josephson next question. from the KeyBanc with Markets. of comes question Our proceed line your Please with Capital

Adam Josephson

Dan, just morning, U.S. sensitivity on a everyone. or Hope are you and your seems question participate. the in the the economic Good as of families which the beverage if well. can John least. markets is It you

about this sensitive. mix extremely with as seems on course, based your not having And taking economically stores convenience more You're volumes well. issue, much, hit. people obviously a quite to held then Brazil, economically up sensitive going Europe obviously, comments but nonetheless, your consumption seems of

And just So if about market then talk can as? how region, sensitive would characterize mix at-home you possible? the each by you economically on-premise versus

Dan Fisher

that with pretty particular, in as it's also America, think in America as like aren't a keep and comments has safety your And social stop. Europe I the some can in quite employed, in I agree a associated different. earnings of I there. not demand in everybody, well, Brazil other and open understands South thing to the catch it. would full around of America, slightly there's folks as which mind, maybe And tax create volatility particular, channels aren't pretty with profile lot net and North South in and significant would much

also tax of not the across not assets, you're So take benefit. your volume when running some able of to advantage you're

little a of I because excuse in more that. believe, South – me, So bit sensitivity, in America

John Hayes

Yes. This John. is

America In is and Really Europe. the between of don't is there's Europe, is I difference huge can I necessarily it what – consumed. think how North terms don't

Dan Fisher

Yes.

John Hayes

a alluded the now, going seeing And trade. is to, is where now. on tourism where Europe largely impacts there tourist that Southern as right we're right And is Dan no

those tourism. convenience Turkey, the market in the shut very in so where the has all it's of U.K., called kiosks part. important urban France, are which Spain, we it's effectively has talked with about, as whether do – the all And HoReCa lot and that Italy, been along and Mediterranean, that soft, April And store, month the what's i.e., the London Even to of a a city, plays down.

that past. see have we not seen people home, that seen than the any When you take it what fundamentally trends are in different we've

a Europe really perspective, but to Europe how less with consumed you is with pantry from the cultural economic it has will, – just the stuffing, do less consumer. in individual there the Now beverage is vitality if in of in can

Adam Josephson

And really the all Brazil, mean Dan. recent then in and John good, mean, of your the goes to Ghansham a I I down one fact think sudden, I volume and Thanks extraordinary. it there – growth on years just been XX%. referred industry breathtakingly has that has

there? it XX%, sounds manage patterns Now these how it's is plan business just like. in leveled difficult But it obviously down really that given and to extreme demand fluctuations

Dan Fisher

trajectory candidly, a region. the environment saw XX question. the still level that's accelerated ups It's – weeks, first to growth and just a entire of the rate in we the downs. that mean, there volatility, down period, X the I clear, be the XX-year the over And great team to

Adam Josephson

Yes.

Dan Fisher

more far a lean our have nimble. We're capital greater and We further. They're discipline stretch entrenched we – there.

of down that Adam, also up in capacity. customers or dealing of lessening maybe to quicker with. the Europe enables North more you're embedded chains move you you than you is far One I their and America, things in nimbly supply react that see further also, in or and you're allows fewer to adding And there's that terms think much

Adam Josephson

have last and receivable some you pretty Dan, seeing have for that you've Are someone cut some earlier Obviously, you that experienced? that that customers marked Thanks any in dividends levered on the receivables the on what differences side normally side. cases. the large their mentioned one matter, side, and from on Scott, changes one are may and just payable be

Scott Morrison

to The No. them. large continue – customers we business operate as usual continue with

Adam Josephson

Thank you.

Operator

you. Thank

proceed Please question next line BMO the Our your questions. Wilde Mark Markets. Capital comes from with of from

Mark Wilde

morning. good Thanks,

John Hayes

morning. Good

Mark Wilde

I I just on had more question – Dan, and is Brazil. for First one

down and well. how about the lines as I help in that a Can line think, that's capacity, beverage to a then producer you think adding got there You've impact just market? you me couple expect help

Dan Fisher

Good Yes. question.

peak XX and in weeks even the So, full to X the in season, short. first stop, was entire market

at capacity. So more the was running, needs the it returns market rates it

you're particular on is they're ours that The of circumstances. has will putting the point be customer hold, to other about that the project that of stated that talking that given right opening and current the moved

acceleration needed I toward many all volume a And large-format it's that the of region. be seeing glass think the respects, again, and throughout invested in tailwinds, further it sustainability continues still – we're can in an from the and to base, the because customer trends So all growth. movement capacity

So, be I it will negligible. think

Mark Wilde

Yes.

be full real Okay. Well, they'd suppliers. to start trying up this is, and it's to other going displace not point at year, and running the

Dan Fisher

Correct.

Mark Wilde

a And good. special talk wondered I quarter. about if And the That's a of of couple Ball in to write-down, items of was there then was and those. Okay. – other Metalpack. you could I Scott, items the wondered goodwill One both significant related were couple pretty a

Scott Morrison

in other as as we Turkey had of The Sure. was had and obviously – and other goodwill reorganized businesses Egypt – to remaining profitable. not those with do Europe, are that kind segments – what into to moved moved those goodwill other

the will, of that's Arabian, manufacturing one we of a out – businesses. Indian, them beverage And cleanup our Metalpack, and containers we plants, those agreement. agreement related currently an have the for other goodwill the then to, can buy make on we to And that so you Saudi those if had of out ability

the containers. beverage took it that partners And cans to down the in food do of capacity we more – be in produce so time couple in in into up Metalpack chose to free a made we versus both years the road we business to that made plant And then we – the advance able can quarter. that so also that an

Mark Wilde

there other in this for Okay. the hook Is any Metalpack any the of potential on kind capital year? you're

Scott Morrison

the capital We the contribution. to any and No. have any of venture don't best do partners it do in interest obligation was to was This felt both that. voluntary

Mark Wilde

then one about that? John your the I plastic been four over anything those some to some light thoughts got of customers. along for had you COVID John, is in in new weeks there's putting whether of Have kind And last you probably on seen for Alright. lines Hayes. kind last potentially the is Okay. Have six talk conversations? packaging any

John Hayes

conversations. been variety of a There's No.

hit Dan it think well. I

over nothing changed I all from perspective a customer think the from I term, of sustainability do a view. think has at long point

think fact, Journal this past I had this In Street topic. Wall even big about the article weekend, a

I think the argue of coin. both sides short-term, in the one could

shelf relative think America life it's cans North beneficial PET. in because the to I and here

bags, I the one-way in have relief think they've use I you're not the as of use been COVID thing. other that's a because crisis. on side stores But – that, that On temporary the of plastic bags of grocery reusable that, more to more of allowed know

personally, in the because believe been we are long live doing of believe – minds term. the on employing this the I forefront which sustainable do put are I crisis over we what world do is perhaps the have that pandemic in people's going we about to not practices

iota conversations think premature I declare with ASI. other. But way can to have tell changed have customers his our it announced – by been science-based remarks, targets this, to one long-term we even I then do a it's you And I as mentioned or that one not impact has around sustainability relative prepared in know approved profound had our this. initiatives the Dan

forward. we continue going to as so think perspective And and more I move from forward, a be it's societal to we important go

Mark Wilde

Okay.

Just this the going recycling and think actually a on lot follow-up got do America you recycled that rather landfills kind industry here in about into in how of now, fact Does of that. than being kind stuff is that the a crisis of right North issue? that one we've such

John Hayes

ticking I bomb. a of was not We of a this think just is landfill function to built earth when. – It's time it it – things.

be the to reuse, important. concept is more think I so going recycle And

of because it's but how system, question recycling all. carried, because think COVID into in thrown at economic being how recycling can you the is important. is I thing aluminum And reuse whole doesn't and change value has contract this Now the

variety more at more to Getting costly of than aluminum to but can. plastic it, it's technologies, continuing costly what's the the now. side much there's look whole much than I they're happening know And a people back of

And focusing an people changed on cost cost terms become where going has so of think be to are added to if there is are you recycling squeezed to budgets nothing of packaging to plastic. about going of start given but important, that, more the and aluminum environment on burden cost, recycling in with respect is

Mark Wilde

Good year the of the thanks. Okay, rest guys. luck to

John Hayes

you. Thank

to. You

Operator

you. Thank

of Please next line proceed question Leithead with from comes Our your question. the Mike Barclays. with

Mike Leithead

but, positive, we If degree the months, North to the here, getting persist guys but called out because consumption. neutral two business, hour your Thanks do Ball at-home we're the XX for moving just negative you rationalization I'll the you it, one more net over out beyond factors these just as XX see call and of of and them finally good American to next in some over or it a lockdown, see keep morning. SKU forward?

Dan Fisher

Yes.

They've what that's to reliable. this positive customers long-term it's because – sustainable a filling on-premise. They're through and got selling They're got specifically there's I investments. – in beer question you selling craft can going I not a craft post The beer more made not think more we've throughout a have that customers. XXX much kegs. just will win think portfolio around are

and folks their The so even will And I their customers, because is are I – a more better. large percentage forward think portfolio more nimble, think shelf it's it's is take the to view agile. moving CSD bigger going can of life our

the the positive going to good is, cans, the can sense whatever Sleek And Whether view XX it's of in so it's I it macro or a as for sign. XX-ounce can. future XX-ounce be a cans,

John Hayes

one then the take And is John we're given past that more Rita, we'll up. there's Hayes. we'll hour, so this If that. question, wrap

Operator

you. Thank

Securities. question line Gabe question. with with Please proceed comes next Our from your the Fargo of Hajde Wells

Gabe Hajde

what bev, of of for questions hope on doing is America. was taking here I North I a margin FX. the I maybe If into little at afternoon profit guys your and fine XX% you about leaves look the put John, America, hoping that, it said well. maybe the if I and improvement Coast. and incremental Thank more take to family contribution on XX% on I you put volume Central million $XX a bit growth, a Good East you normalized account, point to

Scott, to is things about your there half it most and price/mix. productivity, and And performing a a that the maybe from the then can to So, remainder the is I do year? C-store perhaps debt one, this And Goodyear target think fixed you as – half have this of fair the on-premise to dampened I impacting would you costs targeted at mix end the through or pricing costs beginning I'm and year. Can the if in comment net leverage is press if release [relatedly], because characterize like confirm quantify I kind of price/mix component and of ask the limited year? of for of elevated isolated better? was consumption

John Hayes

you the one? don't take why first Dan,

Dan Fisher

Yes.

year-over-year start-up operating America, another million relative you – there's easily up North the costs if we $XX in exposure foreign back refer to to $XX I earnings exchange. million-ish think and there and to were

and fairly So throughput. absorption production higher performance I in where around think the we year-over-year yes, volume plants on comments in your better price/mix sizably improved improved – sales the and we produce favorability, units for even

what comments that's your were. All consistent of with

John Hayes

good that way still is we've on I'd efficiencies. to long have the Yes. We improved work The some add only thing go. made a to

Dan Fisher

Absolutely.

John Hayes

of lot to additional difficult a environment. opportunity in such it's of because out There's costs, in look we're us. little front And the a changing a

higher higher have our have up. was We absenteeism costs, had –

up. are that the So been has overtime paying we

a benefits on the another we've all of is about COVID that cost. think everything result You been giving of as top

had some has that freight We have out-of-pattern costs.

past said, It's on been it XXX% We're customers. have would with splitting it Dan X% times, on As the now not us. us.

your but time normal, there's looks the if I to six And that. issues up. It's better – so what adds a it's answer I like cost protocols, better protocols in but over shaping months premature numbers, people side. term is much have new of protocols, sense it's that question, answer that safety a like we'd hate terms of had it think what – demand, we not up, And and ability to to how use the but just huge

Scott Morrison

the end of net And in the that to on be range] the kind by [X to X.X year. EBITDA, debt range we'll the still of

John Hayes

time out are They given Alright. suppliers thought the customers, health to important all our I workers, the particularly extra thank appreciate some truly of you our overall and time changes the to We it again, want us. going that care thank the give there. are all. Well, heroes and to our people to do, on. was frontline

stay all you hope well. safe I So, and

we to keep in normal you how judicious will people environment, as Thank and very be Let's you we go about returning a think more forward. updated all.

Operator

thank does today. Thank disconnect you you. ask for call you That your conclude lines. the please conference We participation for your and that

Ball (BALL) 9 May 202020 Q1 Earnings call transcript