Ball (BALL) 31 Oct 242024 Q3 Earnings call transcript

Company Profile

Participants

Brandon Potthoff	executive
Daniel Fisher	executive
Howard Yu	executive
George Staphos	analyst
Ghansham Panjabi	analyst
Jeffrey Zekauskas	analyst
Arun Viswanathan	analyst
Anthony Pettinari	analyst
Stefan Diaz	analyst
Michael Leithead	analyst
Joshua Spector	analyst
Edlain Rodriguez	analyst
John Dunigan	analyst
Michael Roxland	analyst

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to the Ball Corporation Third 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, Head of Investor Relations. Thank you, sir.

You may begin.

Brandon Potthoff

Christine. you, Thank everyone. Good morning, Ball quarter Corporation's the is call conference results. third XXXX company's This regarding

The this from provided no statements or be information made during or obligation outcomes Actual forward-looking expressed of may results to statements. today. update differ the We materially implied. those any may call that assume will forward-looking contain

and in Some could cause our differ company the in described Form as factors company the XX-K, to well and that news company's recent most Form SEC filings release, releases. earnings are other results or X-K latest as outcomes

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

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

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

Daniel Fisher

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

moment team devastating impact Tampa, dealing to third hurricanes. incredible with X the quarter, the our Florida, about resiliency want in shown I take talk I a while to Before who of have recognize

these with are storms. Our everyone by thoughts impacted terrible

all major and We of our quickly. facility safe back Tampa employees avoided that was up damage running our are are and and that fortunate

donated relief And providing over to conjunction with efforts Foundation monetary impacted we cities. organizations customers, The and drinking bottles in actively of teams by supporting critical water. donations XXX,XXX Ball cans supported with

and we customers through thoughts communities Our with to employees, the our remain continue communities giving will these terrible global program. employee support storms our impacted by and

to our joined Ball October technology and Alucan European recently also Entec, extruded following leader. new welcome colleagues aerosol aluminum a would of acquisition bottle I like XX our who

customer for to packaging a continent. to market extruded us and to expand growing bottle business As the demand the incremental continues aluminum is our beverage add among also while consumers, capacity in aluminum across customers extruded aluminum way the sustainable grow our base transaction to capital-efficient Europe, this aerosol diversify serve and allowing

and of strong business to performance. call. $X.X year-to-date We Turning via quarter third approximately billion today's dividends repurchase share and as delivered results shareholders have to returned

Reflecting driven performance, canned investment across South aluminum on in was America, further substrates continued quarter to to exposure on North softer-than-anticipated by volumes. beer America, led end-consumer and economic our U.S. domestic the across to globe. In softer-than-expected filling volumes XXXX third driven in by our and other continues EMEA, customers to Argentina tightness In remained pressure the persistent packaging volume strong, Brazil. exposure performance supply-demand region. our by the year-to-date outperform In

Ball's year-to-date. Our being in shipments and global regional performance in the up third culminated flat beverage quarter X% essentially year-over-year can

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

global Consistent Key we well-capitalized efficiencies, the of to be shipment repurchasing to venues. digits performance, customer for XXXX with innovative, plant and leveraging channels, categories aluminum anticipate improving in use grow in our assets shares, commentary performance our deleveraging, sustainable and of continue packaging benefits regional our now previous single volume low the our operational across year-to-date given range. and drivers the mix and company's growth year full

comparable EPS mid-single diluted current we of EPS positioned year our XXXX share reported billion are drivers, in our to XXXX. flow, sheet, strong cash per in comparable plus repurchases $X.X via mentioned grow a strengthen and previously full return $X.XX demand adjusted shareholders balance trends value dividends and on of excess share, diluted generate Based of and free the digits to

With turn quarter over metrics. to that, and Howard discuss the to key it I'll

Howard Yu

Dan. you, Thank

Turning to our results.

earnings quarter Third of in share per was quarter XXXX $X.XX, comparable XXXX. diluted third the $X.XX versus

$XXX improved quarter America, up net million leading operational America. due and in Third price/mix, comparable earnings X% North primarily and of year-over-year, EMEA were performance strong South performance to to year-over-year

had expense. lower interest addition, we In

our were our across beer more of stretched and and offset North and softer segment management expectations volumes. network operating a plant than In effective efficiencies increased for America, and with category despite earnings U.S. cost plant Central comparable end-consumer. in impact lower mass well-capitalized X% line of Benefits the

has team risk. more lowering And efficiencies, end-customer in are inflects effectively costs, profitably operational our set great to countermeasuring a more when years, Our favorably, and done customers' up future we job growth. demand improving serve

favorable, comparable In earnings segment earnings expectations demand remain year-over-year and EMEA, overall segment strong volumes significant growth. in and operational driven entering for track is business and matching comparable by Recent the efficiencies operating were on trends XXXX increased the quarter. operating volume growth XX%, our improving

operating weakness supply-demand while Brazil in late tightness comparable Argentina due segment in the in segment earnings declined increased and America, XX%, South quarter. volumes In to continued

continue can quarter, monitor economic situation potential During and impact the Argentina Argentina third that results. signs scenarios gradual demonstrates of in the conditions recovery, we in some to consumer and dynamic

September of We and enter earnings service we strong demand. selling month volume improvement ability about that bullish America. season comparable the our Brazil, remain demand outpaced to operating the summer deliver to as ability South in Brazil in year-over-year our In and

the by beverage our India. with and received at well quarter. plant were Other, growth see the earnings in within opportunities Looking can The other continue in to the helped we and line proceeds packaging aerosol performed expectations, business during businesses and operating insurance were

business as cups our this currently level for growth expected. company not while result, the Lastly, the year-over-year, earnings slightly improved is evaluating we business various at been initially the And operating a of has business. options this

reflect These goals Moving very XXXX. key financial consistent to the throughout additional for provided figures on to those and year. metrics

debt year-end to continue below X.Xx. We anticipate to be EBITDA net comparable to XXXX

While higher the as X.Xx at the the sale currently company to may from of third continues the Aerospace. at payments quarter, on year-end end debt of net by gain we not tax the of due comparable EBITDA are slightly

XXXX carrying CapEx driven million, flow in largely to is related $XXX achieve $XXX cash to prior track of capital our by the range million, projects. of remain and year-over-year a be to adjusted on track free on reduction target. year's We

year-end. billion approximately Share of be billion repurchased repurchases by excess have are expected we today's call, in shares to $X.X year-to-date. in $X.X Through

company's expect total the driven to on we be payments of the taxes XXXX credits to of total a the of the is transaction as due expected on lower business. estimated and year-over-year of earnings to have XX%, slightly on effective our the Our associated sale, aerospace tax year Relative end quarter, tax aerospace range tax above $XXX full paid the sale largely the million by R&D of third comparable be with in we now million. the $XXX

million. year interest is Full expected to of XXXX expense range be the $XXX in

compensation Excluding year non-comparable nonreportable corporate be adjusted in aerospace the reported $XXX recorded range other undistributed full XXXX are disposition million. of costs costs, to in the expected

quarterly declared cash week, Ball's Board And its dividend. last

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

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

have the on through derisking We executed corporation retirement. debt

maturities. no have near-term We significant

high-quality and results to to consistently for generate clear returns. is deliver near-term runway initiatives activate shareholder us compounding The

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

Daniel Fisher

is Thanks, have comparable and plus. Howard. sight diluted we The business growing EPS to digit operating our of well, line mid-single XXXX

out of employees, While of portfolio strength our at the our and consumer unwavering on the will laid our backdrop we and remain dedication we volatile, deliver confident disciplined, we remains will Day. through commitments Investor the our are

the strong aluminum and packaging together focused provided and the efficiencies aluminum and to our greater by with quarter. value consistent long our together are the employees, support customers operating shareholders promise our communities, on win enabling deliver to display to By on bolt-on the have We ensure aerosol third return care of certainly the term. purpose we we and working of our executing use over near and results, by and was during acquisition,

free solutions down We will innovative shareholder in from packaging the beyond. strive to and compounding XXXX to continue to and path waste returns a aluminum that deliver lead world can deliver

XX% going drive will shareholder operational growth, coupled delivery anticipate repurchases EPS and remains performance, for creation focus. dividends, exceeding comparable diluted our results annum value the in value high-quality share of significant Consistent Shareholder to And with XXXX. per including addition forward, foreseeable creation. we in future,

Christine, appreciate across listening we our questions. the and that, being to ready are the you. well We done work organization extend wishes for stakeholders, and employees, with today. And Thank suppliers, our everyone customers,

Operator

[Operator Instructions] of America. Bank of line Our the from George Staphos question with comes first

George Staphos

into might been sort cost first XQ that side in I of be doing. get what we or much of the any I catalysts line incremental given either things volume guess I'm top work are the in able is, really regards what we then excellence pretty the quo have trying on And the seen XXXX? operational price/mix? that both and to absolute terms is that terms into from to had status there sequentially you've what And might see and you question year-to-date, see might

Daniel Fisher

Yes, George.

I couple to structure, of we're of our X% X% years is goal next think continuance cost of what an to overall you'll of productivity. drive see of in trying for terms to the a sort of

continuing how productivity But that's of a you chunk there. which drive and fill the to Now deal are that. really the great the there don't in built that's told, funnel build there's a aluminum projects on with teams of have ownership to on

of spoilage better. think less less the we turnover less George, less is about planning results and label way better, overtime. By think I are simple That changes. creates conversions it, in and that to planning

out some And We've during higher-cost, of out. got so less-efficient COVID. those the fundamental ratios whack taken of assets

first into gains of that wave productivity this year. half last year seeing you're back and of So

year factors. improvement. improving year, come a will really volume long operational our little this through improving and also of go those leverage a they're in into half And standardization, excellence, way But manifestation next primary second of lean, this of continuous bit the then that, And going flow-through. and the to

basis the a actions lot I see can through making of think can we've taken. money more a we're on you per

think bit maybe maintain merit up I forward. inflation, increases can margin a moving offset we more and that, offset even

gains the grow enables my and And up us really more historically. the In in and North shows those down absent these it leverage, really areas. getting to efficiency comments breeds specific, at investments the about you it seen enables rate where we've further tailwind America step it road, capital are then to into volume also

start your incremental we're nature people, through that of But stuff, And the forward. and and that's candidly, dealing wave. I for the at really that So terms plants, of the the assets and moving now improvements for see easier easy standardization fit how process the We're closures think it. looking not you'll of weren't of terms kind retiring purpose in in of term. with but long to easier

George Staphos

next, turn My I'll then it Understood. over.

you that will summer capacity for mentioned You yet in in the you had some Brazil, constraints season be ready September.

back it is of there so the Is that market manage you question, turn will that the appropriate do begs mothballed way? allow that to obvious how you an in can So on hit sort you that? capacity

is and back, portfolio? much? get America or fact Ball couple one what of positive look EVA What you And out to quite do put of in for that to beer it something recurring then years as to portfolio needs it's you do? emphasize obviously the portfolio topic taking that return step you mix Is either your doing is don't that maturity, realized mass can higher EVA to required change next as it a and a in So beer. a if question mass South it beer. with up Is mass way, the

Daniel Fisher

Start Thank George. with you, South America.

curtailing. function So the this just in obviously, and the quarter, third is of, hemisphere, in summer are you second a

much is in hotter the it faster Brazil. answer So got

And got so lines, stock we uncurtailed the we have should of and build. little have a bit the safety ahead

And basically it X So of in season, not to somewhere us to million XXX peak units. of XXX hitting on. easing that probably but you're million into the cost neighborhood X weeks full

on turned a market, it's QX are that of so We do serve help lines phenomenon. those now. more can that really So have capacity

place. that's been put so into And

the is inflects, managed Obviously, region it do you're we're toes less And focus now too sure more preserving period, in quite we but continue demand speaking. during probably we'll on tight to think right make their a moving to we're season. running thing and I well. or That's and generally that our that obviously that one bit forward is in earnings, our Brazil, incredibly partner tight that peak when doing

mass America. the beer, question, right? on North great We've And then it's in a acquired

pools, of you pools, others. to drives historically, First why all, there? are EVA you big profit profit versus

has it the in Beer you also, XX keep if it's years. category, mind, declined look like for at

cans the more that. in than than innovation has substrate more the those categories the offset in However, shift that. offset And have

strategic ensure we in is be aware to category. the right and of that partners we're with what need So

them, are and winning, are folks but Some doing we're that with folks well. we're not with also

does already elements we've years street bit started breweries. from because that of have rebalancing so the some become acquisitions challenging And over assets right the portfolio. a more XX It across

end So new a those see the there consumer, the not and think, bit results you cuts in end-consumer the that We're seeing line won't top more of white some quick until more relief given rate it's with a is creating things connective gains. I see to interest But you rate that of start a by pivot. to there winners. at appreciate a nature. the visible, we've some same that's always tissue little the weakness virtue of that of time, nice innovating of job done spaces, the At

particular for of on a handful topic, now. been years this George, We've

I the going folks win category. We're to right are think that we're in moving with direction. this in the

here don't the and on the companies, And the companies. just RTD, alcohol nonalcohol fastest-growing probably partners focus beverage beers. fastest-growing fastest-growing historical biggest other light the X blurry of line is our has beer domestic And on beer, one Focus companies.

elements winning brands, with with portfolios, folks with that winning are right the of are innovative. there So winning

we're into factor question. but those we're encouraged of about quick direction not of it's on. All that that. flight a It's the the for Thanks pivot, one

Operator

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

Ghansham Panjabi

if the I in for the correlator volumes as catalyst up performed, to color you other on your comes last to a And is us just And your especially look how the comments North bit want back categories measure segment? in region? for to are you what you do give as of North out as simplistically, this categories how new we winning segment and some more America? And XXXX that, America. this it to share that just Can go on premium so, that? of a beverage just for build business

Daniel Fisher

Yes.

things I think of couple rate that here. a cuts spending there's the think We one. for need first I on fronts, that and saw power. So macro right, the manifestation comment for end-consumer a recognizing quite the actually am folks encouraged probably of finally more been drags first, discretionary I have the the XXXX Fed

I think versus X% discretionary got less we've XXXX, spending power.

a the food think beverage and There's lot more that's I inflation. in categories. been So manifesting

there. weighing so And really that's on end-consumer the

rate cut So the starts to help.

weeks. acceleration here an the We've X also over seen X last of to savings

I uncertainty would the it just of through that the be nice think get election, to period.

to our encouraged So the of combination when of those X all on things are to that we're they're very front. about on certainly -- and that customers, going XXXX talking stage

to are and in is the So paying to the alcohol it to paradigm the in beer price end low end. on attention category, beer innovation that you're going side, category, see going the on high the the be folks in

tailwind they And coming our than will back, get of customers get that category win. others. they as some will a And they that will to into And better. have discretionary of do lean that, and portfolios spending better

next seeing category category. that going bullish that with in And we're year we're that are large. I folks so in the on writ think right do to growth And well

remind And question your me then -- Ghansham. your there, sorry, secondarily, second

Ghansham Panjabi

region? Yes. of I subsegments in the perform? did American that winning just share in -- new was you're winning to you then bev, are the exposed also your -- And business how you're premium North they

Daniel Fisher

contractual really that. shuffle then, think a I -- shift competitors. that marketplace been relative couple year, -- And is it's consistently, saw Yes. our done pretty from you're That was when was of happened. rational to hearing to contract was this a Since that you this contract XXXX some us

has line grow We've we forward. were offset with moving of headwinds business some won that contractual we And facing. should the the market in

energy is, I backdrop then is think the a and wins, issue of those on domestic then beer year, underlying flattish this decline. beer and a

not. of those the muted to not combination contractually out we've But kind won whether the So wins it's or had. you've of have hard X figure that

year mix, all manifestation the categories, sit losers and within has mix, those you and I of within portfolios think where categories. positioning been share and winners a category

Ghansham Panjabi

Howard Okay. just kind for I terms or that gets XXXX is for should well, second point Got XX% to for for the starting plus then base earnings target that of of that my and in it. you outlined reaffirmed, volumes you've maybe as question, And say? what you

Daniel Fisher

in South experiencing currently stronger we're Europe for XXXX feel range process, rate you -- be are X% But will that like and America. we're that line. throes of We I top the now. Yes. algorithm mean, will as the in long-term in better to X% we we're the of be our our than North in America. it know, run right line stages say with initial -- It

of have of or we're we need, terms in need the and in of we this so shares the investment, share we'll the are all the tailwinds million with $XXX to line 'XX. -- holding and -- then so efficiency still nice really algorithm into to the backdrop capital volume we And the contribute year on going the repurchasing. we'll So D&A have line gains purchased second half

Operator

Our JPMorgan. of Jeff line Zekauskas next the from with question comes

Jeffrey Zekauskas

think in restructuring or Kent, that a other Washington $XX ex Or to insurance and Is your Cruz than that recovery any are curtailments closures all involved million. there bit were charges I plant? in was the that more Brazil related Santa charge? little

Howard Yu

Yes, Jeff.

Bozo the in -- had I also think number, I We've ] some closure of is that majority reflected of that these closures is believe, had. we've some [ some related of vast of that also a that, that to in too.

sale the of around say, related the -- and related this, noncontinuing of The it in I to if aerospace. is about thinking context you're to of IT other component operations would no

you well. in And that so see would there that as that's a component of

Daniel Fisher

some op did restructure, we model take midyear. also we through actions Jeff, the took,

we business the individuals rightsizing a with was aerospace severance as So associated post here of were number there acquisition.

Jeffrey Zekauskas

when reasons your reflect secondly, then what initiative, aluminum key you And back? are that the held do you cup on initiative that think

Daniel Fisher

X issue -- anticipating here now consumer, terms discretionary is biggest spend are inflation, of weakened kind inflationary relative willing that's world and the to of things, think anybody unsustainable living the think biggest I pay pressures point I in right price end-consumer. of the was for don't sustainability. biggest we're to in what the the a people the reduced

challenging So environment sure. a that was for

some but And presented downstream move that it pretty that we airports, required pretty infrastructure at well, recycling And more found know transportation, also the in some that's travel, then far barriers house. on I the the it think we think significant service is I complicated. industry, least quickly, of side of to

Operator

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

Arun Viswanathan

in I America? charge correct? guess that South that for first an I was Is think there What million North closure the question America was quarter. and $XX was in

Howard Yu

Yes.

done think that what question, these as the ones that closures I we here with we've just is cans, was to in ones we've America that Jeff some in asking, the Arun, as same North the of in well. associated done answered reductions well as America, other South

the And And so course. of restructure, same I you're asking question. fundamentally think

Arun Viswanathan

Great. easier this then amount of back just next but had about quarters. off. of the though, just volume the that kind over the will that nevertheless, comps progression, Okay. in few know it seems dropping start Those the of -- the like half year. large wondering And some I a you evolving you on how see

XX% some and how low or to greater how in your growth about on. make earnings XX% that of But growth? the targets laid from you past do than can you single-digit you here? out growth of kind greater or Day -- you've are I So expect thinking kind do so Investor at know expect --

Daniel Fisher

Yes.

quarter election have There a the quarter, money those Argentina be in all to the fourth America and so and end-consumer a will in Fourth bit reflection strong money, only I offset easier health was the -- North a stopping the would little people will too how South cuts, save for comp we'll be little of spend quickly of that there. rate in America. are I there, quarter. the to think bit help fourth was that. and Europe incredibly think the stabilization

all about confident feeling regions. X we're 'XX, Into

repeating. think Analyst with line a expectations, our X% to at grow led answered X% will we we've to Day by continue in question but out Europe well. this as healthy laid growth, as rate. I bears at what well, Day Analyst

based kind and a the South coming in X% see America of on today. America America North what rate. we cuts, be finally there's where that North what consumers of will at in our grow they're getting healthy But the and X% end end optimism lower will after need. to hope coming range that's rate

that, consistency weighted get average of buyback, XXXX. the shares returning coupled lower you'll of then share compound effect So And going the into value. with

So us. XXXX should a to nice for will -- shape be up year

Howard Yu

Yes.

a just several is basis over what maybe to Arun, to Investor gross the Day on during did we think, of that, costs outline this next piggyback we're on I journey years. that reduce $XXX million on

those. And XXXX. we're 'XX, so talking would expect of 'XX and so about us traction you've heard we're I really, And and continue journey just on starting XXXX, in getting the this it that all -- here would we as that and

so a And the to we confidence able percent next of XX-plus Dan in EPS level year. very as indicated, high deliver have being

Arun Viswanathan

quickly rates may full And be for as -- footprint. plants, that just hearing guys of you in your been the know have on We've that closed that utilization system circle? real some kind Is obviously XXs. come you low noted. the I

feel require you do about closures, are with that or good would more pretty where the footprint? So you

Daniel Fisher

We good point. Yes. this you. the at about Thank feel footprint

Operator

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

Anthony Pettinari

question. maybe last piggybacking on Just that

possibly Can and you just system even that growth the of go some meet outlined the EMEA, projects your kind talk or And can to X% can greenfield? in you in at there? about ability long your meet the ability Europe maybe about Day. How talk to Analyst long you strength the just to debottlenecking before term maybe demand in you think rate then I what operating of Given is? terms X%

Daniel Fisher

new sort X Europe, to we of period Anthony, did we're at. that Yes. lines. In the know, -- as Europe that's X looking don't greenfield next I see in run years, build, Europe, We an our I add a have think X you -- for don't additional facilities or ability rate to need that planning for Mainland

where And that also to so familiar you're of all we and maximize, debottleneck speed lines point, up with. can we'll equipment and maximize the add things your that. process We'll and

at that one faster places are The caveat EMEA little India be so region, more Egypt, more rate. that a a in a bit patience even volatile they're will places that But is Turkey, like areas mix. there growing you are bit there, have like markets,

So those talking I regions of out my our here caveat about pull comments. initial would spending or capital But is at all envelope we're of of what the in D&A.

need of grow help We South do all growth outsized America specifically can at what to we to, Europe and rates. those

needed we think to capital America. spent the I in North we

is ensuring payback. areas laser-focused So we're to value shareholders to going team investments the that and the us are give in -- returning enabling that greatest the the we're on

Howard Yu

one there, thing to Maybe is, that I early more journey. relatively substrate say Anthony, is would in still add shift, on the Europe

and lift, we continue to seeing good that. see we're a will so And

speak the is today. we think shift something I substrate XX% than less as

there's runway there plenty And as so of well.

Anthony Pettinari

you've Okay. That's North then in very that kind a consumer the just helpful. quick weakness America. on question of seen And

kind of included weaker. specialty super in cups I super obviously, think about bit Day, were talked it's a the sizes been You've specialty of versus versus sizes category. And Analyst at that specialty, kind standard

overall XX-ounce you're you're a and specialty where sell the seeing And in X-pack of are can or cutting it mix not sizes likely mix at in maybe to you products business, more bit ASP of a portfolio, some as or too cans the there? higher when of those I'm losing and some that XX-ounce kind standard profitability North just kind a is down wondering, finely? are of impacting of of you little is between that maybe America kind growing fast look the a specialty broader

Daniel Fisher

Anthony, on draw a just bit. you think, something too here, I I'll are out this it's and to bit a cutting it But finely.

many nearly the So these channel. energy at where C-store rate The you they're are Hispanic in categories the if of consumer a look shop at consume unemployment specifically, look of those individuals the end products, is these are industry. And or you at service Hispanic. they in and And for consumers overwhelmingly, And they energy construction majority right? X%.

so they're channel energy us category that when customers, that impacted. interest telling been rates and have that to we in our talk particular And the

overwhelmingly -- cans -- specialty they're in category, they're are overwhelmingly are the variety. less special that Those those but not

right we So it's so XX happening category ounce, within -- now. that's what's right? energy And the

a that interest to cuts other and starts relieve of couple things. rate So itself,

why bullish about into it some down that. do So customer, tailwinds out a and moving slice discrete XXXX that's aspects it. I'm of regional can have to more to But parcel in to with pretty channel, size, around kind you level to

sizes. and special the end-consumer It's still across is we're categories can Specialty tight. now what experiencing the it's I and think, is all still of just like general all malaise, right

Operator

Our next Diaz line from question comes the Stefan of with Morgan Stanley.

Stefan Diaz

Brazil think the what a it's understand you grew seasonably and number quarter? start there. I to Can you what the tell in period Maybe America. the in maybe piggybacking volume off and George's South was around question slow us market

some faced bit, was quarter? excellence? the Is expectations, if end in operational And shipments that versus that If upside despite that could to could maybe additionally, little dig more potentially the a profitability in more there volume Street you you just you would the speak Or the be headwinds helpful. quarter. into

Daniel Fisher

Nearly Thanks. matching growth our of double-digit X% think Yes. to South growth were by not production X% in and Brazil, and demand. to left about I specifically, down, the And on we we slightly with table America, flat sorry.

and fourth first quarter, do which their them Our in partner not quarter. the which peak But is, primary the to season, in quarter expect we win did course, well the of strategic you referenced.

Typically, we make you those And tax jurisdiction. ends as actually end would know, it very then wasn't in favorable I mix. say a

or increase in shipping down less all of can to team ends mix performance, This really improved that America. regards So South result with that the as we're mix, decrement that and profitability actually. but appreciate is a

our So operations on continued benefits tailwind focus us. for with a bit of South through a margin in little hopefully, there bodes well America

But we've what I dictate in whether grow I or single really QX, indicative us, then low the grow recovery expectations and of digits that we're we're Argentina, all line think it's, we that grow certainly countries digits, will in growing of money of out. there. the be and whether it's not. to that more it for will with the and think mid-single year We'll happens or laid Peru, certainly outside for make Uruguay, we'll Chile and closer culmination in Brazil Paraguay,

Stefan Diaz

everybody American Great. they there. the is That And I'm that that storm storms following volume quarter? in region North had Southeast, do the in the Tampa said, the glad you X any in then the to believe hear on with impact okay

Daniel Fisher

I No, don't.

days, been But I almost able would And have to that, wishes. volume bridge from a period. we able and days a were X in you This . missed June, some said, full other think items August shoulder contributed those largely assets it period. to worth thanks had there. X to production. regional probably source But of we lost like -- our were -- well customers time we for July, the of

Operator

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

Michael Leithead

question segment was I of Argentina Can understand us volumes? Brazil on on impact South heard the you flattish. help America. you If First better correctly,

there? all presence relatedly, down And average? the is how Argentina something So your uncertainty segment Argentina volatility assessing then like footprint in are and just or given double you the

Daniel Fisher

Yes.

quarter versus prior you it approximately For quarter third we're third in the million due fourth units somewhere now And XXX is compare Argentina million year-over-year was anticipating the would was include quarter full year, the million to XXX year. XXXX. XXX down, Argentina to volumes the decrement what this between right that the of when to

it's we in good, I'll it's that, Argentina, that XX And years is not America the South X in So continue really we've said does grown important when as our there support them. it so to there. not. ago, last you, to most the there give us going when really it's there partners to relates good market, and and strategic to well be stayed Having can been Argentina they it's significantly good there. be are want They're to and

eyes wide that, open. Having we're said all

that the in time, Howard of with the Everything the think met I April, bank, met and executing they're they down with President, Vice went met with laid out I Secretary central Commerce. against. at

We're easing. to... sort controls, inflation currency lowest ask levels. the seeing So at Howard, and I'd you of we're seeing

Howard Yu

that's right. Yes, I think

bit think, anything, a it's little if I better. incrementally

some And their policies even it funds repatriate hold nature. being to so us, able to overall as and and of gives think, relates things that I taking optimism that

little the system a there in I as increment. well the banking improving think that is bit

I as so on that that is we this been And very Argentina has profitable path. continue area. expect And progress historically to XXXX think a said, Dan --

year the That said, shock did the all of we much in down last when that That impact happened. the this as and said, Argentina in turns we a we as excess of in XX%. associated policies were see had do don't third initial these year volumes that, being quarter those profit recognize with

and a to as So and though of But mindful lot prospects Argentina. planning, is overall, scenario I watchful we do. we're remain for think the we favorable long-term feel doing be quite what which us going still in

Michael Leithead

are And aluminum opportunities there extruded brings still can bit pipeline That's talk what business? Alucan M&A there for guys? in aerosol then other acquisition And more existing adjacent you helpful. to super your a out you the Great. secondly, or about the

Daniel Fisher

it's our of facilities of I was part investment the actually things original Yes. think space. Well, first one in first, this

actually And our so in some have. employees the plant of we've run Spain,

the and very, know customer built we They in well, base it know a Belgium. also very facility we new So well.

footprint build Very is enable digits, So that we're having And a stepping grow into high encouraging. without mid-single that facility. greenfield a to a been growing to will us has business single that digits. incrementally

was individual presented. and faced owner number so is a who capital the decisions, uniquely retiring. just this The we of And were with allocation was

all board. so And to the it. right were in And we're owner buyer welcome yes, it these this, excited We and anything to on folks you you good a seller have but a M&A, for on have paper, looks on this. know

So that within nicely, came opportunities It's and pretty there other are space. fragmented. the

And value well us our really so we shareholders. a there's to to is buyer I an bolt-ons where fits our for and opportunity return and and -- these structure, nice mean seller, allocation this we within capital -- are continue there's and

the lined there. all are So so out more there stars and hopefully, this of one, those on

Operator

from UBS. comes line Spector the with Our Josh next question of

Joshua Spector

I on I I missed wanted XQ the ask EPS if but apologize to expectations. this, specifically

of about growth. quarter call, up XX% talked fourth being you last a about normal So maybe kind

the your year. mid-single-digit reiterated growth You for

could that low at that's, maybe even the that down. mean slightly So flat EPS is end, or

what expectation the clarify just you quarter? can So for your is

Howard Yu

Yes, in little QX. Josh, what of I had have bit We insurance did would say is improvement a our that proceeds. we

came Verona outlined our that well I the with that think comments we fire. as in prepared in associated

a that was couple probably based QX purely into so And penny was that pulled timing. on

So that comes out of QX.

probably think range. for increment be that well EPS. is as as upwards to will full to That mid-single-digit a mid-single plus QX get relates And digit, expectation range said, we as the that continue said, would year the to that in it us I that

Joshua Spector

And on and I cost Okay. to back of just questions, to go earlier one efficiency. the helpful. That's wanted the savings

where we're efficiencies in control that Just guess are you single, up you're year and planning. what see saying flattish for low could scenario there's in talked what you kind if scenario or from maybe next and volumes doing cost versus scenario more today? I a what's scenario-planning of your earnings about

Howard Yu

we're we this say, would and focused making we're of process outlined, that operational Josh, traction. That to we -- and as continue journey throes sure gain look at as Dan we're forward in XXXX. in standardization get we we move I on our all efficiency that said, What annual what is on to that continues the that can controlling

you so our have more QX prepared And we'll comments for some with earnings.

Operator

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

Edlain Rodriguez

would stuff they just people you less Argentina. mean the I really conditions? because problems. a want Because observation think the forget drinking quick Are to economic on would of

like there. guess, everyone my I so like is And down friend

to down there see conditions. in so surprise little volume much the a because So of economic

like like comps? that driving there? then, Like just we've again, you consumer go if is attribute would end Or on there. you nice seeing that to a that easier been really what's restocking, Like strength So recovery Europe demand? improving into

Daniel Fisher

Good. Yes.

of way. So lot if We Buenos drinking Aires, week, less. just outside last spending get I you less a there were down people think in Argentina, by yes, power the dramatically are

than significantly So year a profile ago. consumption different

have than this better bit have that pricing been customers there our secondarily, been year that things the of more been One, the has year. And in happened have then EMEA, X a aggressive. we anticipated into coming

the can terms at pass bit in there's same price. you the a more of by point on Now Europe, what through in retailers control

number to go customers get So a our by there's been share. of conscious effort

energy. two, Number has there been on relief

spend power Europe as So relatively energy did they suddenly in the relatively than got a year spikes, they've folks speaking, before 'XX, more have however, this did don't ago. in in much they as at discretionary their right, time pocket,

So those X things contributed.

QX event not much restocking as of destocking, be that QX. a that The will a characterizing, you're impact.

the of Maybe last seen months ahead they've levels think year. X improvement So inventory too QX through real. in you've demand bit true what the QX. That much a was are I first because of lowered of in

come through you should QX have easier you in a seen you would seen at in comp this So it then that because characterized. it this And than phenomenon be have more QX of that would relatively point.

Operator

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

John Dunigan

or Is along outside is the Dan, to to John. you're really all alternatives. those Howard, for the on wanted said sale? bolster guys. a that strategic touch this I mean mean Appreciate else I I looking cups there at investment lines? to you're first you to detail, get the looking Phil. Trying just on business. explore or business anything potential acquisitions is there anything up more

Howard Yu

has formal business, can't as year, just made. it's me Yes. been say that decision firm and continue. we're in no think that probably that magnitude first the But John, well, $XX let losing of about this or we million

that third-party joint forward. focus various rightsizing as that outlined, different you more at on there means venture business whether look or maybe we'll of that can Again, business. interaction some so And maybe going options, sort that

obviously, not we wind then through down. And thinking whether that or

But all address something that to we here the So things in in short play. of those are certainly need term.

Daniel Fisher

business. additional or think putting either acquisition via I in the would not terms capital, of . it into

John Dunigan

is on talked said you mean maybe that. a that I behind I Is and couple it able good, came lot. to XQ, a in full it seems you and you America, type? can in. X% just about that on? I then appreciate know weeks catch the like XQ, weeks, be know few South summer but mean XQ loss guys guys in recaptured up X% summer I And is kind running that to in I you're weather it. schedule, something maybe normal season the Got up selling started now, out we've a of

And then on is help you can for as Brazilian more already about region thoughts it running pull market? beyond, see as had assets that into something and your the year full you're region Is that there. you thinking Maybe going capacity maybe where to needing maybe of growth? you Argentina supply some that next out, a primary the customer the in your just

Daniel Fisher

Simply about period, doing or low put, in think curtailing, way. I it winter during always our maintenance you're period of you're businesses always No, right the this all thinking work. the you're

you feels chasing I were in of still be volumes bottom still, think of positively -- honest, It let's we were now. inflecting South the like kind we're America.

a earlier. do reframing it's when it up your so And of further, you maintenance, stocking levels, pulling

manage effectively. run this, as more There's capacity to to So curtail. I more you can opposed think,

weather that's and our and we're running, to We your catch have a capacity it places laser-focused related you the running And we're this you've surge to the third Argentina point, a might in assets when bottom where see in other were more quarter, line. missed up. excess Chile bit driving on to no, magnitude, we

for stable season better that prepared we'll shoulder benefit it environment, is year line encouraging. you more top in So really be missed kind But I think a onetime which there. next of

Operator

Our question comes with from Truist. Roxland Mike next the of line

Michael Roxland

Just me. ones X for quick

the you you present? North during can go Just And North Dan, where quarter? in can stand at do America of the shipments in -- through October cadence America shipments

Daniel Fisher

it's -- Yes. to that. was now, I frame. And right September and started then a continuance It August really slow think heading things okay say as of we're was time would -- into I

scanner could see that You data. in reflected the

should But as usually this number people a And one. two, to XX-, number things will well, flow to interest saving seen have get through, XX-day through cuts high impact think at hopefully, you've those think stabilization to got It's we rate there's and X rate inflect. happen. those pretty I for I are to there. X a next help And week, And now. things right some

still think a I cuts. sit in inflation as of encouraged Like I about I said, about talk little bit stabilizing, uncertainty we're a here interest customers But you rate level darn XXXX, our today more and here to are stabilization, QX. pretty

Michael Roxland

there beer? still your beer. is situated. then mentioned it realign realignment to correct diversify things you're that Obviously, wrong, just customer lot quick consider, way into But to earlier. any in if given really plants And other one on Is Or to end-markets? Got with it. are brands trying focused more are just to sounds particularly and like on winning really I'm also strategic strategy the the a where of follow-up me me,

Daniel Fisher

Well, we're that with most, with we've mean the I that's and the of been winning company all brands are winning There's a position. dramatically the got share significant in the that we're -- brewers, right? overwhelmingly, beer,

don't then look at think I as it, as I look beer Michael, we within alcohol. And We -- would say, at anymore. it

have best So the the best portfolio, alcohol we're them. that portfolios, folks with

reiterate you the would just have Of margin reposition? course. Historically, better in space the of other. this. been Can beer any I than the far

historically would come have So at you might but cost. the diversification the get growth, a

we it's beer, about thing And declining so remind taking the other to everyone, because substrate. weren't just were like we

to this still But it's it's now -- So was share there or now going has a share then to just that a bad beer. believe aluminum closure calculations aluminum happen, prognosticating, opportunities. those different announced XX% and has week. XX% of of be. beer another But and there's making a not if a place substrate still because There it's is shift you glass

very to I innovative about and and who's about you've more we the are speaking, thoughtful generally Generally we think acquirers. mix. the really those, mix be thoughtful So got have the folks, the winning

backdrop of demise bit overdone I beer is shift. the a the substrate given of think that little

with decline. but the a has lot to than general, end-consumer years, So this portfolio. been XX yes, softness do declining for within beer the I more in think has beer And our hasn't

posit. would I what that's So

folks everybody's Christine, again year. safe. talk remain And certainly to we'll done good very And appreciate questions you here, our and we're you. after and has everyone a holiday much Thank and that the hope

Operator

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

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

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.