Ball (BALL) 26 Apr 242024 Q1 Earnings call transcript

Company Profile

Participants

Brandon Potthoff	executive
Daniel Fisher	executive
Howard Yu	executive
Ghansham Panjabi	analyst
Anthony Pettinari	analyst
Arun Viswanathan	analyst
George Staphos	analyst
Edlain Rodriguez	analyst
Adam Samuelson	analyst
Philip Ng	analyst

Call transcript

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Operator

Greetings and welcome to the Ball Corporation First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brandon Potthoff, Investor Relations for Ball Corporation. Thank you, sir.

You may begin.

Brandon Potthoff

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

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

financial be Information If on our available in release, it regarding use section earnings you the is of do also not release. already have measures of notes the non-GAAP at found the ball.com. may earnings today's website

of In include through business, of addition, of the release noncomparable diluted References call of sale release to items earnings comparable earnings net sales the well earnings includes earnings attributable reconciliation today's comparable a Aerospace business operating corporation a performance February net share do XXXX. include in company's Aerospace calculations. net summary the to and former as and the former per year-over-year and as net comparable date and XX, company's do earnings the not

the now over to turn call would I CEO. to Dan like Fisher,

Daniel Fisher

you, Brandon. Thank

to leverage, Before the our tirelessly would XX, team all Ball's thank like that performance, strengthen and of were immediately sale shareholders. proceeds value we XXXX. Sale to volume successful I our to balance strong work earnings and worked aerospace the reduce to discuss February achieve members business Ball improved on return to put sheet

would as company. XX I the also share years Ann retirement after Head addition, In Relations her to has Investor that Scott like of announced with

of say, behind-the-scenes a into year. golf we in safely lifetime Ann will retirement, being end cheerleader to provide Babysitting, the through support Ann's all Needless and Ball be Just first Ann this Ball the week, Isabella world. doing arrived to grandchild know and will what the

she extend time e-mail. well employee, winds to down as her your free as via her full-time feel a wishes Ball So

been our plan your and family and activated Brandon lead Ball. the and their her of introduction steps the take as Relations as tell on next with you they of grand Investor for careers the the Ann call has taking new can from to our and head support baby succession retirement the today, in As Brandon at Congratulations Miranda well-earned her department.

Today, by I'm joined on Q&A. up some with Yu, and XXXX our the provide quarter Howard and financial I will introductory we will metrics and performance will key Howard EVP comments remarks. and call first CFO. brief then discuss for closing finish

quarter. the share shipments in executed strong to and results proceeds the during business first the beverage repurchase a initiate team sale Aerospace sale program. large Our multiyear quarter Global increased following can deploy plans to of we delivered and and X.X% our immediately successful earlier-than-anticipated deleverage quarter, the

In First quarter across pulled forward in globe. further season, Reflecting selling other packaging continues North fourth the performance, XXXX quarter XXXX summer year-to-date on substrates our to volume exceeded expectations preparation destocking. following America internal the and volumes EMEA, notable outperform aluminum as customers for

warm continued In our South volume performance mix by America, weather driven in customer Brazil. and strong

to refer of summary for shipments complete the please earnings quarter, today's a For regional release. first

regional we range. our mid-single seasonality, global performance, grow first anticipate Given to and year to digits the customer quarter shipments mix low in incorporating volume full

and sustainable to grow XXXX deleveraging, aluminum assets use shares, plant benefits and leveraging are venues. repurchasing improving absorption, innovative, categories efficiencies in drivers channels, the packaging Key and well-capitalized across of operational cost our the fixed of

actions sheet strengthen long-term addition, the to and to further reduce In liabilities. balance

flow, return strong of the comparable and positioned sheet our unveiling operating to our York We City mentioned drivers, demand XXXX. mid-single range per $X.X plans New for in grow and our model team in we long-term repurchases at strengthen XX off York of our at trends share comparable and reported the look New balance of Investor scheduled are to via our free June Based biannual billion on and in Day $X.XX future dividends XXXX the and digits generate EPS shareholders showcasing Stock diluted to plus previously EPS cash current value share, growth forward Exchange.

turn I'll that, it With to over Howard.

Howard Yu

Thank you, Dan.

results. our to Turning

quarter earnings $X.XX $X.XX of comparable quarter per XXXX. the in First first XXXX was diluted share versus

decreased the costs . First North slightly and the quarter South America. sales volumes prices pass-through offset due of volumes aluminum of lower lower increased inflationary by America, in in to and pass-through

due aluminum First our $XXX costs in offset lower North were X noncomparable to year-over-year by net than footnote America, which earnings flat EMEA America, and are nonreportable in by undistributed of in detailed comparable improved today's quarter performance of higher and were by million other, driven year-over-year more the operating offset year-over-year which primarily earnings aerospace comparable year-over-year, South in aerosol sale business, SG&A release. being improved with associated costs, results

efficiencies purchase Kent our with In associated U.S. and the power headwinds volume North earnings America, and the segment agreement the ceased supply-demand aided incremental the earlier-than-anticipated capital. growth management of The our well-capitalized quarter exceeded spending effective of permanently growth balance plant, termination. system. first without brand notable year-over-year and production closure during our cost virtual expectations plant offset across benefits across favorable plant of will network results beer Benefits also and which support incremental disruption

risk. by fixed seasonal anticipate driven We cost managing the sequential earnings absorption continue to and volume effectively summer quarters, modest improved improvement improvement, during

conditions, and the and mix. trends largely demand to be second business XXXX, the in late destocking have favorable, continues notable in half the poised to demand and earnings varying by certain comparable volume Overall, weeks, consumer particularly quarter end recent were business navigate EMEA, In by following year-over-year XXXX. oriented In in for in slightly customers driven up remained segment continues the to Egypt. volumes growth

quarter, our up Brazilian first by America, volumes quarter. XX.X% the XX% demand Brazil driven was increased the The our segment South in first in In mix. and can market strong in customer

to continue deliver South in impact the as ability Argentina selling our sequential potential and America. results. economic improvement in We exit that summer Brazil and the monitor dynamic about optimistic volume earnings to season We and scenarios remain situation we could

first $XX operating comparable in of net and million the earnings, sale, Aerospace of included February earlier. which the I XXXX is XX comparable of up of through date million earnings quarter business in $XXX that the our former Additionally, referenced made

additional to Moving comparable financial on net debt X.Xx. metrics to XXXX. below EBITDA XXXX now goals and year-end We for key anticipate to

we the by currently due payments at gain end tax While company first EBITDA quarter, starts net are X.Xx as at nudge of comparable the higher to the the aerospace. of of on of sale debt slightly the will year-end

the a year-over-year prior to carry-in targeted million, is CapEx to and capital driven projects. be largely related of XXXX by range in million of $XXX $XXX reduction year's

this track shares flow expected are to $X.X of have the in cash Share approximately meaningful XXXX target. authorization the on to This We billion free by authorization today's share share year-to-date. shares. our during repurchases will $XXX week, repurchase And replaces XX Board the repurchases million Through increased be are to The in enable new increased we and earlier achieve million repurchased prior authorizations. all call, authorization range beyond. year-end.

Aerospace remainder year rate approximately largely expected company's to with earnings R&D full to the driven associated sale is tax XXXX by comparable XX%, be on the of Relative Our effective year-over-year the business. aerospace tax lower credit taxes of due expected in on due billion the sale, the be $X of approximate throughout to is paid will million. payments expense XXXX the range be interest $XXX XXXX. tax Full year estimated

be recorded costs, still quarterly corporate Ball's undistributed of $XX the to earlier year its And in other this week, declared adjusted disposition XXXX compensation Excluding the full Board dividend. are nonreportable expected aerospace costs range in million. non-comparable cash reported

business across excellence, Looking our efficiency on laser-focused rest and cost market of emerging monitoring operational XXXX, ahead and driving volatility. to the productivity we management and remain

our company We term. are committed of over potential to the full maximizing the long

on activate consistently debt we generate high-quality executed near-term The initiatives for to the retirements, deliver have results We significant through and to corporation maturities. derisking shareholder recent near-term have us clear is compounding runway returns. and no

to I'll that, turn With it back Dan.

Daniel Fisher

Howard. Thanks,

diluted in lower Given growing start in of packaging we the mid-single the plus strong XXXX, count. offsetting growth a interest by comparable year share divestiture lower to through aluminum EPS digits benefit operations, the expense and interest our anticipate income, the our

process global will by and sustainable deliver lead compounding on pathway excellence. Together, waste shareholder by free embark to solutions to are our a and strategy returns continuous scale to value in Looking world focused improvement advance from organization deliver driving our from additional that to accelerating carbon solutions packaging and ahead, executing we the to packaging on aluminum on unlocking aluminum path a strive within enterprise-wide can a innovative beyond. we and operational XXXX neutral

the and everyone much We customers, well Thank done appreciate you. today. work extend listening very wishes stakeholders and the our organization to our suppliers, being employees, across

with And questions. are for ready we that, Christine,

Operator

the with Ghansham Our of Instructions] line question first comes Baird. [Operator from Panjabi

Ghansham Panjabi

our congrats for us class off, a Brandon real and and also. First importantly, a more act to of obviously, resource Miranda also huge congrats to all and Ann,

Daniel Fisher

that. for you Thank

Ghansham Panjabi

Yes.

obviously, various and on comparability start could just outlook you thoughts issues there's lots Dan, So with of updated so the so I guess, And the issues by customer maybe, with the off forth. on regions. and and

So the -- what point? like markets market do what feel at the this is

Daniel Fisher

Yes, good question.

think we down saw market over I quarter, in there. the quarter fourth today the our partner in of did strength kind the and in America, carried first the South won

So year. the a really good start to

took as economy bit refill it sort that over improve. months we about, inflationary of a I environment. glass that and think the of to relates continues higher back lost that little talked think to XX we've incrementally Brazil, We I

positive. that's So

So the that's in inflecting right direction.

that I will then selling this world in and proceeds of hanging year certainly Argentina we'll agricultural -- in those balance sheet months, couple ago. And there. then the outlook in policies, some and Yes. benefit unlock commodities from the and about get having I world. FX around probably were part the They'll that down higher good crop. there their in couple increment a of think versus weeks the us X our which the They're next Howard here derisk is Brazil. of should

a but versus seeing going-in -- large, were we're South growth. seeing in negligible really negative America, the We're country scheme. assumptions in writ ahead to it's was flattish Chile, the little that's grand slightly So probably only our

it's you in spot. As know, And really all that's a good about really Brazil.

anticipated. we're entered was of in across versus particular. our I think were working heading more assumptions. closer ahead a favorable so of into Pan-Europe A QX in they pickup or and destocking, in growth I to then the to think, in the beer in lot we year to manner COVID. And things see look one, we to position saw we Europe, got some terms of are some there a couple where levels section a Number and better what prior where starting -- inventory

than are So more for even volume Europe. going the we bit folks heading into anticipated a in year

that looks outlook great. So

going And all we underlying the then be parameters prices out, happens year. Middle of what happens and what of influences course, East consumer. slightly that in are and what the But heading the energy to how is end watch in into the assumed the ahead

encouraged. we're So

peak in and year-over-year I think, into dealing on get challenging for that explain the of most we because the season. And to with major negotiations. how to architect had from into QX But then pull see forward Let's with labor was us do a QX, lot is the QX brewer -- one comparability.

there. safety challenges had we stock so potentially to And some navigate to build some

$XX pulled to in it, So QX and made though, million changes versus QX last original of balance the from the that over effects million really starting think of $XX the The months. Ghansham, into we've XX area in of see was all assumptions. structural to our you're is

taken rightsized more we've out. we've higher So the but facilities cost importantly, operations,

volume as see those And running efficient you more get starting portfolio to and against benefits. you're a productive so

X X of impact, million, out for the overwhelming million X So timing about into probably customer. $XX $XX

so slightly for higher at shipments much rate scanner -- reflected -- And are data. the a a underlying in we at us, our

our within year. what we versus, then in even portfolio, areas, large CSD their beer And of portfolio, I won into expected customers heading some our the particular, within is think, our soft, writ in

So we the that mix the And a is by have. think, player going I pivotal by right role, now, to industry and we're play encouraged player. within mix

So it's QX down and boil to QX. to going still

let's the start Our on a peak we next is customers to see go the and to get improved and performance year and going still great, season X world. slightly across how in the for are volume months. great and

Ghansham Panjabi

two reconciling see the $X.X really hundred million $XX a the it's to I of capital, so refer Note question, couple down called second out One or help also? net to off? having clarification. first What does a it is for is that proceeds billion the just second, time sequentially, buybacks. like interest with that A, still million net a And billion but sale you of debt $X.X for income. parts. Can share And comprehensive. billion. or working I'm $X.X billion of you Very corporate from $X the looks that tough And Okay. In then

Daniel Fisher

Sure.

Howard Yu

Yes.

is just on related we hand. this got cash Ghansham, -- Howard. I'd the is specifically maybe say So income interest that that the to

billion -- got almost $X.X billion. we or over $X.X So

associated the interest that plays with income into And increased so that.

to... relates it As

Ghansham Panjabi

Is included but... in interrupt, to that EBITDA, sorry

Howard Yu

In Yes. it we would March was yes, had was relates that And paid $X.X thoughts that as sometime anticipate corporate line, Remember, Aerospace the yes. Yes. Yes, then being we that's down closed in debt, XX. that right. billion. the initial quarter the have about after to we

euro-denominated March. a the debt so that due middle And was in of European there came

we that so paid And down.

$X So couple you earlier billion that and would around with that we where the that go. proceeds referenced

of And we Clearly, that's expense knocking revolver we that short-term the interest and debt going were that, out billion the on $X.X of as you as well. why like so debt see go to neutralize the as some some and had. and cash ahead well that hand, retirement with things

$X of repurchase a share about talked billion next have we years. the then couple over And

said repurchase here of $X XXXX. we think we targeting initially share I billion were in that about

Given that. bit the we're of ahead timing the little a sale, of

said earlier as And this about worth week shares we're to authorization be what the $X.X repurchased. and was that here in with well of buybacks now the the so to billion we going million XX Board that is XXXX, consistent by approved share target

we -- what the said. in anticipate else and then consistent CapEx, million consistently year, So everything with about be that's to we the going -- $XXX that

I timing think indicated, than is at million about our and we had interest it to around relates flow you're that early as $XXX well. $XX seeing probably better in as million expense originally

Operator

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

Anthony Pettinari

Brandon to Ann and to Congratulations Miranda.

I can't over about and done say that things good think the the she's years. Ann I enough job

So congratulations.

XX% Just last you down flattish the kind think if I almost on benefit or at year, looking energy of America, volumes. North back out was from EBIT up

or You that just of fixed to than within point on talked reductions able of anything about finer of you take plant that as out put any wondering closures. in performance if that the operational kind the cost there's been the I'm cost America? can more sort you've terms North from

Daniel Fisher

Howard shot I to ask [indiscernible]. a take will at then and this

I Yes, facilities of it's the closure Straight the across and think portfolio. its improved line cost the it's twofold. from the immediacy performance absorption. of the fixed

and a Probably this that. couple potentially we're now commented we've portfolio points, think gaining ago, efficiency versus assets before. America, I years of on North X X on across of our lost points of we've in

higher-cost the the So running cost you're we're of closures the facilities, fact fixed plant with combination coupled seeing better. that the of benefits and the

a lot these folks X now that years roll So they're of are or better. and plants X in of in a performing number

the no. combination always So those and two positive, it's are negative. there's But views there that I things. always a are few that think mean, of I one-offs, some there's were

underlying it's the think in doing facilities region. They're really I really the So of performance nice job. a the

Anthony Pettinari

the talk XX%, in in just growth lag kind related? in lagging a then volumes that you had Can And of or XX%. it. kind Got it. up with Is bit. South EBIT America help Got cost reconcile Argentina us you I great up, that? think, America, result Or dynamics price a South about EBIT but of any the

Howard Yu

Yes. Sure, Anthony.

go shot at Let and there. one ahead take me that a

in I season. peak think South was America its

we And that and so the very it well. QX as think about well, quarter talked was Brazil the we it way about in earnings was in well performing as --

the mix the about it and of season some change. and So to think will really, in of the entire you context got timing

operating in growth the in low so you we what up about of growth around And earnings was something said and had about in if QX, XX%. X.X% think America we X%, had South QX single-digit we performance

growth XX% operating and here coupling quarter so earnings. XX% then And the performance that the volume in at with

about quarters, earnings. relates we're up it If XX% it over operating and XX% to as at holistically you both for those look

in way about And we so it, relates things we're obviously particular play it South into that's cans the mix America, overall. that will think seeing ends, those and as to and this

holistically. successful So more and overall context how I them of busy it's it the the think been for in season of

Daniel Fisher

In for than can in quarter years fourth we and right? the and heard you've us talk in did years simplest about. the years we way, about we've ins first this quarter. more and the ship And in shipments, and talked So

that's of in terms the portfolio, isolated of really, within balance not volatility deleverage. the the It's where So entirety the leverage, the quarter. lies of

You season. of kind overwhelming entirety of have the that's it it. throughout gist peak at the look to And of

So fall over we're with with through leverage the happy X-month the period.

Operator

next Our RBC. the comes with from question line Arun of Viswanathan

Arun Viswanathan

of wanted the Bud share America Just how situation. your to that heard you're now We've evolve get within also on thoughts industry. North the anniversary-ing volumes in shifts should some Light

any So there's of well. yes, or kind us kind helpful view be maybe thoughts of your you that if promotional and discussion can category would just as give

Daniel Fisher

Yes.

spoken think industry That's to share the within known in well a there already we've numbers. happened. our that's was it's the shift So that tune approximately of units, and X about, I brewer billion on

$X So incremented line of fill got picked we and hole competitors in lost multiple we've billion sight the that that up year. this to up. And

the If go thought previous laid major in the this XXXX, big that we've a first disruption, flow business, volume. we of the year. but for negative we'd America and into of then in, to the only you would won will chunks for dislocation in the couple back the you of we And see be not half back brewer we North assumptions already call the to of and lapping start obviously, quarter, which

that's where America. we toward So North geared flat in

think the out the of of of Energy the for X% year Mix generation growth it. good that is little and of quarters, us, peak the and CSDs to a out going business. it's but industry to promotional up now the to better. But in of plays got the to next whether little see little in Beer of with north volume X%, North a -- matter. that, Obviously, increments still softer, half size operating of of should little you mix and the the grow. range. health the of a of the in flat to in we're billion little south year little season and We volume a balance volume that will in $X is amount you'll play the last matter America. into will that roughly regardless a pick comfortable within really couple the inflect up, cash similar a So whether through line here and volume. X% back the the activity down we've really determine a of of we're consumer, X%, that's out lift earnings continues growing Mix end sight

Arun Viswanathan

of they premium -- Great. to the And be price if comment just some aluminum just the push And impact and would sure going price you cover in forward? impact pass-through? it Or I of I'm that seen -- Maybe think volatility place, a then I metal also your we've sounds Europe, curious some especially on that would they have programs in better -- standpoint? levels hedging Europe any can mean if context if side. obviously getting headwinds characterize how guess, I'm that opt customers in of how some potential you is not supply-demand to on demand from from you that inflation? kind would would there I but like

Daniel Fisher

Yes.

number the mean that There's now prices. it's energy that a low happening in That aluminum seems much historical is coming preferred this to about parts I to in I inflect is incredibly right think toward of significantly the watch We're to I context. guess out going in be package. nothing East, probably of the right? point. prices off a Europe. do at of shift Middle a what's

tied pause of would world, because energy the concern. not it's Some We're sources aluminum other power aren't or nuclear not end out something our it's customers' the this some at any of give having mills or certainly with it's that us but would and fed conversations that patterns time. that consumer, part behavior protected up that impact is

aggressively in to In going fact, the are this it's and working share. at that. They're can just on do taking the more opposite and using point.

If right little down now what And concern. a has folks more overwhelmingly, X of in last I to the it's is but hedges, they learned not It attention they of they'd caught hedging those a think in to instances. a to what in a And low particular, years got out. watch upside always over is, locking hedges question locked kind hedge they paid at lot all-time of think I we're So be protecting X your and strategy I in some seeing kind where everybody are. think levels.

I'm So impact. that the and watch more by going then out the bit obviously, industry have And the encouraged behavioral does patterns. East little in of is the on what's any structure Middle and the a

Arun Viswanathan

Definitely, And again and perspective. as Ann Great. her speaking Brandon getting congrats well. to and we'll with miss her

Operator

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

George Staphos

for details. I'd it, Everyone well. as but Thanks the to like said

on a -- the [ baby, all Ann number ] Brandon of congratulations on congratulations, resource of us to first their industry. and grand but legend you for responsibilities. to in also Just years, the your Carmen such last increased the being are over And

Okay.

terms stand terms X kind in on you can X% efficiency in day-to-day lean in give still you claw regard? of operations, us you that a And last do of how about had mentioned terms you do that do of to up that trying you for X% closure showing actual that loss plant Where the Forgetting -- stand you're benchmarking that years. is recovery? to of benefits. X few Dan, where or in over the back or operating instance, What a So basis?

Daniel Fisher

showing where picked that X% Yes. We in -- over latest back. have older the numbers showing on I The principally, new it's up you just think retired, portfolio -- scratched probably up up, if showing X.X%, we've We've it's to that assets. there's getting And XX% improvement, time. say, of of assets would X%, were of So surface got, across got existing the X% in It's I spoilage. we've okay? showing will, contributed other that the up the still it's George, reduce I've seen.

you bit it mean, you we runway. a on that's apply XX billion have units. still could when number I roughly a meaningful to So of

show innings. for And and year. to the manifest so importing half know, efficiencies those over volume But in you as of back up, to we're early here in we're order the

and operating can counting about I model, in, our we more talk to on more about Investor say we're this terms we've how continued structured So we've historically. point and on we're improvement. it to roughly, that at in would I got shuttered this the we're the X% We'll now facilities granularity of than the on X%. work talked are But Day up and into it, pick the to of up but assets early to that remaining And we've think, innings incrementally. continue in getting is place grow to showing too,

George Staphos

I June, X because to it I ongoing. Okay. facility could okay, well, to a to you pushback or X is be get mean, you about point from it's talk going then and because shut we'll got be, a at X come got remaining guess, the but in tougher

great, comment be any That that? we can with if would have June. not, you do stay on So

Daniel Fisher

not It's make that's no, be to service this learning employees new years they're are say to how would I in and roughly true. going X,XXX is of cans. Yes. that X easier because

And facilities. This any point at is of not in when this we learning about ramp-up talk XX-month an curve. incremental on so time different than the terms in is XX-month,

in it that think context. I about

maintain at we focus, -- did, have attrition don't that you obviously, the if during levels we So COVID. we

in and pretty a in this a will methodical We manner. will gain pragmatic prescriptive this on gain we on very and

XX XX will we back months. next the that encouraged to here this over get I'm So

George Staphos

question. Next

Were things But a the had you So lose look the any as we no. in market, know or expected did and there the been in quarter leverage? might in Again, of if we knowledge take of I teed much answer share have of whatever in where with what said South your in holistically. or on Brazil? customer leverage number issues very the the operating operating Brazil issues or any depending the at any sort on volume up. customer lack should any sort that of and you're Anthony you is Any loss the -- recognizing profit away? issues XX% quarter terms in to should were Was America growing probably piggybacking it there versus customers

Daniel Fisher

Yes. Thanks.

So at Brazil grew at XX%. XX%, we grew

So didn't anything. no, we lose

XXX%, share that you quarter. quarter versus fact, If the say were clear, mix heavier to is in is we be In could the George, first positions. just it end incremented this sales fourth

And it so is. that's what

been up fourth XX% in have shouldn't earnings X% on growth the quarter. we So

that's So talked kind if about the tax It's which that's lumpy, All pricing X end of mechanisms end anything because down it's that of It's not you and in and no It's incredibly -- that not a profitable it's we've it. -- stable. issue, day, mix fundamental. X. Yes, contracts, float forever there. it's like nothing Argentina. just between of and just really It's fundamentally jurisdictions to

George Staphos

inventory you planning that sheet? that in we tightening the of the against your against of an that sanctions. concerned it some the aluminum there used a Understood. to you're and of quick. X My how there something been somewhere some working risks around mill planning that the probably went inventory a last two Again, into or able of but over the the be because not know with us Congratulations a color XQ. What and little was bit on last of might this it's more give was you recognizing of on But years, question, can in piggyback congratulations. last, number? how ones just to terribly you've I are related then Aerospace Number on you're It not kind that? one, if about. disruption showing this up spike, therefore, aluminum And are see just what watch are some obviously lot clearly, What out, again sort supply on sales? be years, the couple thoughts now don't and chain, is a world can -- payout a lot showing valuation. favorable that warehouse up aluminum

Daniel Fisher

Thank you much. very

lot So This sanctions XXXX. a put little managing gotten got your XX as different managing price may the our relates managing supply. long-winded in place this tariffs terms at a it we've lot. programs. since of to metal in better were risk, and cost inventory learned the We've tariffs, a be answer in We've

be So of to in would metal that conversation. even countries we're where shipping that's really sanctions, not concern on it

going routes -- that concerning it that some be can to may where relations will it So those for with exactly what you or consequences described. places what countries there's be trade used, have unintended trade

years, get managing we're relative at that going We've conversations last derisked and -- over how the out understanding those. of what's gotten handful we good we've ahead on gotten those we've So pretty to it. that, of and

world issue. because years portfolio. less need of agree. conversations, managing we we're terms category to some the for of on how is our our comments ethos, well our going things mean, time it. But change the ago, it on again. S&OP inordinate in of in And not at in just to the spent it weigh under wasn't patterns I'm like not and process in say our then in that suddenly, let in very or this in X just I process. of manage I'll we risk think point management But an this would it's to pretty put I and here us an the Howard I control, low of of I wasn't cadence that it's So -- amount X

Howard Yu

Sure.

and employees. for foremost, of the first a associated So all performance-based think, compensation Part the I with is comparable component sale. that aerospace variable plan George, compensation

of impact be the of the I it think normal. of this the magnitude disposition way causes to expense think not we the is

not recognized on disposition we've billion of unprecedented, likely $X.X gain is this to which a so approximately ever recur. course, and And

with And that a so associated that as reason, treating compensation that. noncomparable for we're component

Operator

line Our next Edlain Rodriguez of question the Mizuho. with from comes

Edlain Rodriguez

of one But to you. any Because seeing improvement improving there? what consumer the Brandon on seeing like expected. in Ann, and better Again we're hear miss to fundamental Clearly, terms a about start the to were Quick else everything spending year about are are Europe. you what was than better surprise, you we things Miranda going improving? -- a congrats and bit. you quite Like

Daniel Fisher

Great. Yes.

inventory And volume. customers wouldn't there an payroll I piece and impacting I QX. unwind the versus inflation of end at by twofold. it's an other consumers for activity think by I think I promotional spending the say and more. to unnatural say our relative the mechanism retailers, our end is was would customers So level then influencing the is the are

they bit. built a up little so And that

other little So then I wouldn't a it's normalized shift, some behaviors volume. not year. bit other bit to to getting we has into better it's -- QX, more anticipated into has It's aggressive from the than baseline. the the more category, not can and from of customers. it's QX in some stocking, half probably will, heading winning And widened relative that cans. exciting, going really than inventory But into little That but little bit substrate the a It's to incredibly plastic back there's more by more say. any enabled spend Europe you if favorable more substrates. certainly Europe these region I in a the say glass categories, would probably gap versus trade-offs across

happening. a shock So more we're lot I beneficiary the to. There's of but spend up that, it wouldn't

mix. the of beneficiaries the we're think I

Edlain Rodriguez

your high-class then, Okay. Makes course, share mean with the a I how balance of buy sense. balance but higher of share to have, Like in of like and back another repurchase, shares that And commitment that? it's pace you like the mean, how you terms do do of problem a higher versus to the I repurchase? price. like pace share one,

Howard Yu

to mean I think, it well that a shareholders and had that consistent to fashion Yes, Edlain, for returning it. I on we to basis think share as relates as our consistently we've a I getting had, pause years and buyback, from I few important. measurable in some think back a we're heard that committed

just I then going. think instruments. do million share, us. as we'll back how price the history long this work mean worth clearly the be there, the here. buy thoughtful, to of there we'll at to things right? shares utilizing that we the $XXX like I bought stock in not about when a of that mentioned for look what program, economics as and we well the XXb-XX and volatility so to of when vehicles is And it the is XXb-XX the some blackout And we we've if blackout starting use as have different is ASRs And we're smaller and even relates

do that holistically the we'll Board that $X.X believe buyback. to worth with year, shareholders. dividend Combined all about and we looking we're being with we're billion things in at for so them. will $X.X of And our policy, the thoughtful share billion conjunction about back What about return this those spend

Daniel Fisher

we finance to levels even to elevated returning then and relative comfortable And model right level value talk in that this buying shareholders and these committee very And above our very stock still, now something yes, this. absolutely with we price. elevated mean shares internally. I and our at Board things comfortable we're we're to back our that's our back at

up this definitely we're So something like look about trading very but level. shares it's today, it's stock at the But -- we'll that is, even where comfortable at.

it's So I question. our it back a X And on have value. more -- we behavior return things And about of bolt-on mechanism it's the for at think if of it's, terms powder present we over in let's do we're earnings, we return it's hey, dry et we're value here good in future. cetera. generating flow, owe to months, as M&A, cash the themselves to a get talking but see great they plenty really shareholders next just to to levels how that more foreseeable X good free the a generating

can kind at we think this I at So of it And all it. that's do we're how looking of point.

Operator

with Goldman comes from Sachs. Samuelson Adam of question line next the Our

Adam Samuelson

believe some there's also what of has outflow cash family. also I about back extend we me and not to is bought the Ann balance I'm occur cash you come kind is than higher [indiscernible]. understand to to pieces I the I Let on component just sure talked make to wanted Maybe, that yet in was that. maybe moving initially the quarter. you programs Did has what $X.X obviously want you that sheet, -- to a the targeted congratulations Howard, timing receivables? a addition still is the Or to on cash trying lot Maybe of side to on in clarify, reduce factoring that billion that the happened debt flow what and had retirement to been of her first. my

Howard Yu

Yes, problem, no Yes, Adam.

billion, billion to was after we but apples-and-apples -- standpoint that had the So about $X.X aerospace that, sale March an $X denominated debt anticipating was was yes, XXX from retire that about retired. sometime we million talked of did of XX, debt do recognizing the had it March that of EUR we about XX date.

the XXX to billion additional USD us that the so quarter. to the gets And of equates that $X.X in million essentially

factoring, the relates in cash hand, given -- that We meaningful of full the we factoring forward for in had than year. on to it did anticipate the way. here unwinding still quarter first with move more did we would As we a probably the the we

to goal And of goal year-end, by going the that we're about But -- specified was AR of to billion and billion. about so by with $X.X probably year. end this $X.X target of tune the stay factoring our unwinding

here have and or that make So the a second other going to a that actually we're we going this have as through tax year well. course you'll the payment second in half way see quarter to $X little as the bit throughout half -- of in second billion

Adam Samuelson

obviously America, interest up. helpful. step as step expense, take the tax factoring think X share back inches X moving pieces we just last And repurchase, of about could I within reduced back in the comparable aerospace XX it. maybe very had you Maybe there's pay year earnings up off income, Okay. that low there's maybe if we and core what follow think beverage if off we of because leverage like you [ Dan, debt, ] rate what a talked of lot -- us EPS a level year. growth in That's units, can this growth, the business about operating kind but North with had Obviously, to about profit we volume that kind some growth mid-single-digit favorability, in core off help units core operating of that should some volume operating look had globally, about the growth think to those that first growth? quarter, especially

Howard Yu

loss with on with an with cash, reduction interest as I of associated on aerospace the would but you'll here, would year-over-year leverage associated it interest anticipate operating income, say And given expenses, it whether overall, we've neutral as -- aerospace, some hey, we essentially We've EPS we improve as on basis. sale we've a that the EPS debt. said, be see What the factoring to we've that. mid-single-digit said Adam, contextualizes for these be additional plus in retired standpoint, go pickup ahead operating us and said continue earnings the programs. the and that on

sales. that in year, a the said we've of aerospace be leverage. it with neutral of would for context So the associated EPS the full the Think Xx

the And so we way that's P&L. the think it within of

we've modeled. duration here And what with what That's see so with that's of we're consistent XXXX. to going through the consistent

Daniel Fisher

Yes.

you the -- I think purchase historical to than $XX business, onetime the nearly if it's out for the core higher if significantly back Xx you beverage leverage power were agreement. of million

the it's still in of leverage. excess Xx So

and benefit. of -- million $XXX result going onetime beverage the operating million, get that out somewhere of million $XX to think the we're improved $XX $XX and lapping earnings, of in year-over-year I an million neighborhood business of obviously the has the

Operator

from comes of line Jefferies. next question with Our the Ng Phil

Philip Ng

the year. sale be perspective you to with well. about helpful, it quarter. and It's Can really perhaps out as CapEx the is first big and for strong her we XXXX? Miranda certainly flow Ann I cash question give And Brandon help how growth wanted I the Howard, beyond, to the this more congratulations on all maybe else, a years, my been look of noisy the like everyone Congrats as to thank cycle. and over power CapEx on think free little a aerospace XXXX us business, guess

Just dose more about quarter, us flow opportunistic you're that, how more context to thinking give kind how give have, just to of and So pullback? how steady think think on of little about should and the problem the buyback cash we pretty pace a buybacks. high-class little the well certainly a every a free us as if but playbook about

Howard Yu

Yes.

So sure, Phil.

go me a little that ahead and Let into get bit.

I excludes some flow to operating cash business That about that has on of that talked to $X we free I cash impact going anchoring think million context right? So $X.X billion free generation the we billion, relates of that of the about Dan unwind, mean, can we're is, and right? is. see think forward consistent of and this the way a it As basis. that it about to think flow, the talked and normalized of the factoring cash range, a say, I in rich $XXX in how the to --

And that's specified. the share help so years fuel to you believe we buyback into that that going even

of had the CapEx, the that recognize it CapEx outgrown. ballpark consistent I to relates the that CapEx in D&A basis. years, getting think it little few a bit here we last been As over a is GAAP way I mean, about on

that's DNA so next we're discipline that into And envelope. to the returning of for well. we back going getting that, CapEx years think And the to happen few here as

because be at as a it all, Dan the we'll we'll I relates mean, buy at it's we if to us any, look is then that well. of as buyback, there little look, reason feel at the said, to and price bit share prices, continue more about As reason to opportunistic for for any that good

think I that full those so optionality. we And have

reason forward consistent we're that beyond no had to we we shares, that to here greater buying years that to of something do few going wouldn't in do XXXX. that. think going to for and on here here back a that return here, paused point we'll do And is We'll think in a know that I the XXXX. that

Daniel Fisher

expectation are net would I free would simplest -- say flow. we business in running the cash equals our running enterprise-wide the manner, Yes, Phil, income business, that of I our is

I think at flow. in locking don't as million of to free So us cash want about you $XXX

and diet be be cash flow do steady years that future. consistently. pullback mitigate a that. there to more. that in bit be you're you with in point, We will you're can to do million X%, some be will be be buybacks years of We To think got returning overwhelming the to an associated we But room that I free And of our you form if opportunities you with that a X%, and that. buybacks, we working should expand, -- to may levels manage the margins and we dividends might back able spend this some generating capital free the growth. some get where X%, shareholders But our a of to majority As should some coming your the that over in GAAP locking $X back for share it going less, cash D&A flow more. foreseeable should build share

Philip Ng

your a be stuff more remarks, That's like than busy then perhaps and Europe. Okay. Give your summer Europe the gave you the more half events of some some like perspective customers that more It desk? sounds choppy nature. on think great. back little on some but about And Certainly, Are they front gearing still the made back I prepared How better up kind restocking. comment -- for why recovery see sporting little a to Olympics of would for And the the perhaps euros Dan, perspective up big there's little that? you environment, us is and half-weighted. good big a months.

Daniel Fisher

there of really year, and Yes. the was restock benefit macro thought we the come behavior tendency to for by But favorable consumer related We volume. projects online. comments that more back be got a of entering and the the a for strength were and customers that little natural bit our it end the the would in come kind consumer. inflation of more pushing and the regasification

and half well. what that's of second would for more heard our we really the So customers room be in as there optimism the from . year,

more do the certainly more the get about I'm I behaviors. I Olympics behaviors the soccer about than point Euro about drinking helpful. excited drinking football is -- Cup Your

needle generally moves will. the than the a you more Olympics, lot that if So

will So that of from certainly we've -- heard Europe. be customers helpful, especially Western elements that and and larger beer our

especially into the really end -- in see it to stronger So behaviors, to in yes, more But just energy It's glass happens us, favorable a favorable as online. as a manifest coming of a things for starting And is of little impact that related. continues in better Middle to it's we're what contractual with in is I the playing Nothing and a encouraged. incredibly increments prices manner still out how pricing stable. being cans. the watch think consumer. are does relates relates those macro moving shift lot manner East and This we're to consumer, it substrate out

second haven't So the up influence increment the may of if in a more small impact improved of we And would the things year. or half an that a to bunch anything, anything add to seen higher. of negative, outlook kind be that

Philip Ng

to be still heard for if from I give America in one a On you some North me. Do earnings up little pull us Got XQ. update. it. you expect then America, And And you correctly, to XQ then had year-over-year more earnings just North forward XQ.

still shelf movement And of well think issues, on customers, beer there's on of reset labor one front update side. some some managing been Texas. kind is space the that with think, North in ongoing I dealing peer I larger in as down the and how believe, I America with that? your Any you're

Daniel Fisher

-- let I'll to Howard, the earnings, get Yes, over I'll the union why don't you cover and issues. back

Howard Yu

Yes.

I quarter think despite the think second do year-over-year right, in upwards some pull-in the that of Phil. earnings increment from that's to QX. I here QX

to probably that, anticipate it's have as as But operating growth earnings we'll said, that first or as second that quarter despite it million $XX quarter. we relates the think the I Dan well. still $XX in some improved reasonable million

Daniel Fisher

Yes.

-- I numbers. won really folks think anticipated we communicated of the there's disproportionately, been couple in shelf and our have from that resets well that have been a

the would I even sideways. reset, with or is down think beer even up, down. say, I moved -- nothing's category the So shelf with

the it's reset, with the then, hasn't now, about of me, and and of promotional -- manufacturing how this bit managed. they the but our what are base. it's Texas a the the about managing resolved, kind the ongoing. still brewer. to in right in effectively we're of partner with of going a we're certainly to season, doing right So strength activity some as They're that running think volume. speaking, particular unions, connected job and can, with peak And it It we excuse on nice but with broadly I and working they value more beer get really category sure And less it's we're drive being yes, our relates is make it way of that now been it's think to of I the plants world

and another also that par so for coming major So I -- had to to work this shifts quarter think in to the mitigating we any we're all chain toward brewer is realization a work probably the supply throughout these course in conversations thoughtful to aligned that contracts up moving forward, industry and them. around can system, getting the come is collectively the across we have everybody and sure making and when manage more with

Operator

Our from next of Kaufman question comes line Morgan the with Pamela Stanley.

Unknown Analyst

echo to Diaz for Stefan and Brandon And Pam. to increased actually Miranda my responsibility. sitting is colleagues, for This Ann in the and just congratulations

the closed any you details is hand. that investments? deal Now and are potential around proceeds give the innovation aerospace Can in

Daniel Fisher

Yes. It's a good question.

us to being worked area a the to package for by And think set thought hear of and that And different think big I combination getting but always just really I customers. that's from have constructive that So is innovation is -- it's an by will, innovation investing. can relates worked R&D if transition going guess linchpin that there's of opportunity the the everyone we're that There's you about underlying the resealability. They're And in a our always commercial being attack, plastic. everyone as and in and lot hopefully we region, on vehicle that in process. projects. this you'll there industry on a it all I be

stuff be So are products. it's new there's interesting substrate out those And And pretty some will applications that's big also it benefit these that as unlocks. to to that -- be then coming going the shift. relates also --

benefits you et focus so the other a a whatever like that's transferable a and more are, offset sustainable of into and better, It's a unique can that. cetera. I can of then the think got graphic easily think, package that and that package depiction, more is you've substrate real innovation than you have I gets supplant far the those circular

that's so that And where focus is.

that a there's and there's space. better application that's very all substrate is. calorie, innovation That's lower that's of real. creative in new -- lot then alcohol lot to sugar, the where new relates terms for then alcohol then categories, But as partners. as are lower incrementally There's we're person, I a a just be a that. happening say outlooks our different it be in lot we're health, And us. products, have on happening, the makes terms CSD categories that would in the And sense scale, at to and do and stronger it on of behavior working because company spend right And working things balance commercialized can These would our with nothing we as right sheet. it generally

at looking innovation And right so we're now. that's how

Unknown Analyst

Great. Is demand the volume low was I hit believe digits. now based guide globally, on digit initial end mid-single do expect you throughout you of year then single top to see top now? And maybe for And the your at need and Or expect single guide? XQ? do to digits raise the that what low strong the better end to you

Daniel Fisher

dependent. season Peak Yes.

I'm mean I starts be to abundantly mid-range X.X% think I transparent. to [indiscernible]. versus talking X.X% about the Just versus like if growth look X.X%,

Europe. in data North say little mix gate. in we out had South America. got of a the So I behind ahead We're favorable would a in Scanner is little We America. ahead

think of cash flow $X.X get that of low digit you're to single it's EPS see seems or on that's a little to like business, And through plus mid-single I share it going billion. net-net-net, our generation of digits XX% of whether Until tune buyback nearly digits, season I've favorable. we ranged balance the regardless So mid-single the appropriately. peak

and really performance the confident we're underlying the behavior So of in business.

see peak how gets season Let's on.

Unknown Analyst

through could And you expectations? Great. maybe one your quick sneak here. Can I how go versus trends April in just one more benchmarking if are

Daniel Fisher

this a line, year. largely you March, fell than our a line year is softer as Yes, expectation. in with April different Easter week than it in little And but know, did last

that plays bit. it into so And a

-- or is really before a So of And when things weeks it couple I Memorial pick it's to start think up. there Day thereabouts. it's really

back the the quarter really half where meaningful. it's So most second of it's

will be last that the question. Christine,

minutes we're couple of think a I over.

Operator

management This over now comments. to ends the like would back I question-and-answer closing session. to floor turn for the

Daniel Fisher

to thank Yes. New Thanks. Again, I to company incredible and reminder, Day. echo her the just to very service Exchange quarter, -- the just Stock at look nice Ann Brandon June Miranda. talking quick Day. toward for you. thanks of and at Investor XX, not forward the our the York again Thank at And all a end before We of to you I'd certainly all our comments to if employees. like next Investor

Operator

gentlemen, today's and teleconference. this conclude Ladies does

participation, have time. a for you your this and your disconnect Thank wonderful at day. You may lines

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