Ball Corporation (NYSE:BLL) today reported, on a U.S. GAAP basis, breakeven net earnings attributable to the corporation and earnings per diluted share for the third quarter 2016 (including the net effect of after-tax charges of $171 million, or 96 cents per diluted share for business consolidation, debt refinancing and other non-comparable costs) on sales of $2.8 billion, compared to $45 million of net earnings attributable to the corporation, or 32 cents per diluted share (including the net effect of after-tax charges of $110 million, or 78 cents per diluted share for business consolidation costs, economic hedging losses, and debt refinancing and other costs), on sales of $2.1 billion in the third quarter of 2015. Results for the first nine months of 2016 were net earnings attributable to the corporation of $210 million, or $1.35 per diluted share, on sales of $6.6 billion compared to $226 million, or $1.60 per diluted share, on sales of $6.2 billion for the first nine months of 2015.

Comparable earnings per diluted share for the third quarter and year-to-date 2016 were 96 cents and $2.61, respectively, versus third quarter and year-to-date 2015 comparable earnings per diluted share of $1.10 and $2.67, respectively. Earnings per share figures for 2016 reflect the impact of higher shares issued for the acquisitions of Rexam and Latapack-Ball.

During the third quarter of 2016, Ball realigned its operating segments as a result of the Rexam transaction. The company has retrospectively adjusted prior period amounts to conform to the current segment presentation; comparable operating results prior to June 30, 2016, exclude the effects of the Rexam transaction. Details of comparable segment earnings, business consolidation activities and other non-comparable costs, as well as descriptions of the company’s new business segments, can be found in the notes to the unaudited condensed consolidated financial statements that accompany this news release. The company’s unaudited condensed statements of cash flows will be provided in the company’s Form 10‑Q expected to be filed by November 9, 2016.

“After successfully navigating the initial integration of the Rexam transaction, including the wind down of its corporate headquarters, a detailed review of its overall business and the anticipated cash outflows related to the recent transactions, our comparable third quarter results were right in line with our expectations. In addition to our solid packaging segment results, our record aerospace contracted backlog further bolsters the momentum we are seeing in our company and the opportunity set in front of us,” said John A. Hayes, chairman, president and chief executive officer. “The acquisition integration is progressing smoothly, our long-term financial goals are progressing on schedule and our value-capture workstreams are on target to deliver approximately $150 million of synergies in 2017 with the full amount of at least $300 million expected by the end of 2019.”

Beverage Packaging, North and Central America

Beverage packaging, North and Central America, comparable segment earnings in the third quarter 2016 were $145 million on sales of $1.1 billion, compared to $109 million on sales of $818 million in the third quarter 2015. For the first nine months, comparable segment operating earnings were $356 million on sales of $2.7 billion, compared to $316 million on sales of $2.5 billion during the same period in 2015.

Third quarter and year-to-date segment revenues and earnings benefitted from the additional operations from the Rexam acquisition and continued strength in beer, non-alcoholic and specialty can demand in the U.S. and Mexico, as well as improved manufacturing performance in the legacy business.

Beverage Packaging, South America

Beverage packaging, South America, comparable segment earnings in the third quarter 2016 were $60 million on sales of $318 million, compared to $14 million on sales of $134 million in the third quarter 2015. For the first nine months, comparable segment operating earnings were $100 million on sales of $577 million, compared to $43 million on sales of $407 million during the same period in 2015.

In South America, third quarter and year-to-date revenues and earnings were higher due to the inclusion of operations from the Rexam acquisition. Overall industry demand was relatively flat due to economic conditions in Brazil and Argentina, though beverage cans gained traction in the third quarter relative to other substrates due largely to solid specialty can demand in the beer category.

Beverage Packaging, Europe

Beverage packaging, Europe, comparable segment earnings in the third quarter 2016 were $72 million on sales of $687 million, compared to $61 million on sales of $450 million in the third quarter 2015. For the first nine months, comparable segment operating earnings were $184 million on sales of $1.5 billion, compared to $150 million on sales of $1.3 billion during the same period in 2015.

Comparable segment earnings were higher in the third quarter and year-to-date due to inclusion of operations from the Rexam acquisition. Overall industry demand was up slightly led by solid demand for beer and specialty containers across continental Europe. In addition, strong demand in Russia favorably impacted third quarter results.

As part of the divestment in Europe, Ball retained a contract to provide certain customer volumes in Spain. The company today announced that it will begin construction of a two-line, aluminum beverage can manufacturing facility near Madrid with the vast majority of capacity secured under this long-term customer contract. The plant will be operational in 2018 and produce multiple can sizes to support this contract and further growth in the region.

Food and Aerosol Packaging

Food and aerosol packaging comparable segment earnings in the third quarter 2016 were $31 million on sales of $329 million, compared to $31 million on sales of $372 million in the third quarter 2015. For the first nine months, comparable segment operating earnings were $84 million on sales of $911 million, compared to $89 million on sales of $1 billion during the same period in 2015.

During the third quarter, segment volumes declined upper-single digits due to a weaker salmon catch and lower seasonal food can volumes in our system. Tinplate aerosol volumes were roughly flat year-over-year while aluminum impact extruded aerosol volumes grew mid-single digits. Management remains focused on repositioning steel cutting, coating and end-making capabilities across Ball’s existing U.S. manufacturing footprint, as well as managing the overall cost structure of our tinplate business.

Aerospace

Aerospace comparable quarterly segment earnings in the third quarter 2016 were $24 million on sales of $204 million, compared to $21 million on sales of $204 million in the third quarter 2015. For the first nine months, comparable segment operating earnings were $61 million on sales of $577 million, compared to $61 million on sales of $648 million during the same period in 2015.

Contracted backlog grew to more than $1.4 billion at the end of third quarter; more than double the year-end 2015 level. Ball’s existing technologies and value-added approach continue to align with our customers’ interests. The labor base supporting these important contracts continues to grow and should result in progressively higher quarter-on-quarter revenues going forward.

Outlook

“Our post-close detailed review of the Rexam business yielded no substantive changes to our initial assumptions, and our 2017 through 2019 financial goals laid out on our second quarter earnings call require no update. Year-end 2016 net debt is tracking toward $7 billion following anticipated third quarter, acquisition-related cash outflows,” said Scott C. Morrison, senior vice president and chief financial officer.

“We continue to make progress toward our integration and synergy capture goals and I could not be more proud of our team. Ball’s EVA ownership mindset continues to chart our course to deliver improved financial performance in 2016 and beyond,” Hayes said. “We are fully executing upon our integration and rationalization plans as evidenced by the closure of the acquired Charlotte, North Carolina, regional support center targeted in 2017. We plan to make future announcements regarding other actions at the appropriate time.”

About Ball Corporation

Ball Corporation supplies innovative, sustainable packaging solutions for beverage, food and household products customers, as well as aerospace and other technologies and services primarily for the U.S. government. Ball Corporation and its subsidiaries employ 18,700 people worldwide and reported pro forma 2015 sales of $11.0 billion. For more information, visit www.ball.com, or connect with us on Facebook or Twitter.