Tags: Ball | can | demand | BLL

Ball Corp. Taps Global Can Demand

By    |   Friday, 16 Dec 2011 04:52 PM

Under-the-radar stocks can be highly profitable yet less volatile than the general market. Ball Corp. (BLL) fits that bill. A leading beverage can-maker worldwide, Ball and a few others dominate a growing niche of global metal can demand. The result is that Ball has eked out a 3.2 percent return this year.

Emerging growth countries are key engines, and Ball has footholds in the Brazilian and Chinese markets. Last year, Ball finished buying a metal can facility in China, where growth is set to double by 2020.

But Ball also is expanding in the United States, snapping up four can plants from Anheuser-Busch in 2009. In 2010, Ball produced a hefty 43 billion beverage cans in the United States, Canada and Brazil, along with 15 billion cans in Europe. PepsiCo and brewer behemoth SABMiller account for most of Ball’s sales.

Tight cost controls help Ball gush cash. Its free cash flow totaled $3.4 billion over the last decade. The Colorado company puts that cash to work, recently buying back $100 million of its outstanding common stock.

Giving these tailwinds, Ball is thriving. Third-quarter earnings per share rose 16 percent. Revenues climbed 10.8 percent to $2.26 billion versus $2.035 billion a year ago. Ball’s strategy is maximizing value in existing businesses and expanding in emerging markets, explains CEO John Hayes.

More sales on tap

Of the nine analysts followed by Thomson/First Call, five have strong buy recommendation on Ball and one has a buy, with three holds.

S&P analysts have a buy rating, noting improving global demand driven by China and Europe.

The company reports next on Jan. 26.

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
Companies
Under-the-radar stocks can be highly profitable yet less volatile than the general market. Ball Corp. (BLL) fits that bill. A leading beverage can-maker worldwide, Ball and a few others dominate a growing niche of global metal can demand. The result is that Ball has eked...
Ball,can,demand,BLL
268
2011-52-16
Friday, 16 Dec 2011 04:52 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved