Ball (BALL) 2 Nov 232023 Q3 Earnings call transcript

Greetings, and welcome to the Ball Corporation Third Quarter 2023 Earnings Call.

During the presentation, all participants will be in a listen-only mode. [Operator Instructions].

As a reminder, this conference is being recorded on Thursday, November 2, 2023.

I would now like to turn the conference over to the Chairman and CEO, Mr. Fisher. Dan ahead. go Please

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

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

earnings release, If is not you have our ball.com. do our on at it website already available

], Information may divested regarding release. the of financial segment. reflected the business Historical use of CN-X beverage operations earnings Russian also notes segment non-GAAP measures the information. today's the in be EMEA in found for are financial results packaging section [

historical comparable of earnings. For operating breakout a quarterly sales and Russia's

In of per addition, a calculations. as of the diluted summary earnings and a release as share noncomparable well items includes comparable earnings net reconciliation

quarter discussion a will regulatory is any announcement a announcements Before exclude cash multiple business Inc. made our necessary regulatory The provided commentary achieve important agreement in Systems, metrics of when financial August and for underway be premium release we adjustments. the I dive is customary made. recently conference The some and appropriate, estimates impact billion to call Aerospace flow $X.X XX, sale. business. certain for Therefore, cash to into solid in the approvals today's subject transaction by about its closing announced approvals to prospective company. business progress process conditions and potential earnings and like reference Aerospace to an achieving earnings company performance, for BAE On and would to the proceeds, third sell a Ball's premium

have introduce last EVP as aerospace to I'll call to until will to and discuss enable transition is for and Ball introductory Also, provide Howard has then himself. September execute of CFO; transaction, ensure CFO. opportunity agreed joining and with the Yu It on and to September, successful me call the company an retirement with well-deserved up close remarks both Ball's key stay Scott comments today. pleasure and for an outlook closing Ball the the XXXX. then his some a smooth will adviser Scott metrics, and announced Howard in remainder the to earnings provide has role and on financial we Morrison's assumed To and our a of of Q&A. and finish brief XXXX Scott Howard early a Scott as

me let of few his minutes First, begin of service as to and Ball's years by for taking to years XX serving CFO. Ball a Scott thank his XX

may M&A as XXXX. you arranging for the part Pre XXXX, was In ], of since Metals Ball stepped up multiple rest bond not always the has navigated ball off of sailing when and economic numerous [indiscernible] these he's record-setting into wonderful Treasurer through sunset, and transformative one he actually our acquisition. has an now. successfully XX deals, Ball know deal earnings Scott every financing executed M&A been history. the integral Scott literally. completed the is that Some calls Ball He is our of cycles, Scott joined of [ and outside bankers Reynolds

agreed did. bit a so him am request, since Scott because XXXX. to company on grateful and stay longer I as than CFO originally At planned. personally my better worked thankful Morrison Our he have to And is Scott he of I'm with

capable career. off new for to you incredibly Ball, CEO global to your pandemic the a commitment team bled retirement. steepest a mentor, being onboard successful like of healthy Scott, and a being with Ball rates a and interest On rise for the happy entire year, blue. leader we you multiyear 'XXs surrounded trusted and long, land team, a and helping wars, candid in inflation wish someone a for a himself the finish thank Nothing since friend, behalf who your a

say Paul late a Howard wealth our September. and introduce and unlock new I'll and Howard all words. to lead Ball decade. a more for operational turn value welcomed you company to Howard's improvement it as with in next a for packed joins will CFO with focus continuous Yu. Howard as over of even the Howard, help public our on eyes stakeholders. a CV for fresh to global passion excited experience excellence I'm CFO, to experience few

welcome. and your with been introductions onboarding have investor events retirement, on the meeting and appreciate and the industry during I warm meetings Thank entire leaders the team many in Dan, your first facilities. really Ball across and recent excellent, forward participating to future continents, in immersion look manufacturing and and congratulations meeting you, you I XX X touring My several Scott, person of Board insights for your at conferences. days.

the schedule team to out including Relations reception about at on investor Stock outreach details New out Reach schedule. packed relations Ann upcoming a close for to have We and Investor the XX. XXXX, Exchange York a November our

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

Thanks, Howard.

and million I'm lower delivered team strong the impact expense the of supply capital million year-over-year of effective excellent businesses across and operating our working tough a volume tax in actions from isolated aerospace and costs to packaging benefits efficiencies, sale. Our inflationary an $XX proud did say that our cost-out $XX managing quarter recovery, and partners third cost quarter. operational chain of of rate volatility Russian during improved the headwind both earnings results, job interest the higher comparisons. a offset team

volume down offset the being than mix and a was X%. Double-digit decisions in and to which of ongoing in resulting the X% shipments second evident performance. are in brand growth the global demand mass beer some versus quarter performance past disruption Our in sequential helped in American third North in Ball's U.S. EMEA regional XXXX, to our industry down headwind quarter, overweight improvement Brazil volume the customer volume positions better

to and lean to costs, actions the position demand capital. commercially aluminum into attributes domestically, to low-cost lower our on efficiencies, leverage improve well-capitalized our sustainability will ability forward, packaging tighten invested of our Ball operational supply plant win and innovative assets our improve Moving returns portfolio

In business addition, the proceeds provide now value come. and sheet unlock substantial will to and value utilize of the and to share value years in the and to in flexibility via our balance strengthen and via actions drive rapidly announced creation repurchases range net sale Xx, Aerospace leverage to financial our dividends the of return shareholders

Brazil, the for one respect, decision I like also adapting my the with would utmost we reduce working see our care recent selling while further company sell of gratitude head to to summer some our concern employees and for costs their busy to improvement global level shipments, We're into as Aerospace in to network. fixed plant across beginning another beverage sequential season. extend particularly in to and our

EMEA, reducing for demand North America and fixed run macroeconomic will being business the eye costs trends in-consumer and and current to the the environment. in future the in fit Given cash current we for an continue on with

both In and shipments our Global Aerospace, third for demand Aerosol our our Aerospace continues grow. booked and Aluminum quarter not technologies Aerosol backlog and Aluminum Business, And backlog in increased. to our increased XX.X%. X Businesses, In products

occasions, offer serve as innovations Our Very experienced quarter astuted fire business manufacturing emphasizing refill growing over bottle reuse continues and which release, and aluminum categories the late broader Virginia substrates. a aluminum its at aerosol to a aluminum is of in aluminum Verona, new facility, customers mentioned to set the [ our Ball business. press part slug extruded ] in other and of

personnel extinguish plant no all that were during incident first thankful blaze. are responders the the and that We evacuated while occurred safely injuries

Unfortunately, our coverage also the The facilities. aluminum try aluminum very customers' colleagues majority from of the a the our and it's slug of the fire working remaining structure hard XX% team damaged of impact. to plant's equipment to extruded meet global handle the continues the well-being support and will financial to Insurance complete our is demand loss.

However, to prior we will deliver yesterday and cash current at value Employees that we were our going flow, have notified goals. our to deleveraging Consistent determined site. stakeholders and with operate this return shareholder commentary, unable of we evening. on key the of decision remain positioned be to forward,

for look and diluted and the work appreciate low forward call, expectations call. to in America, done our discussing being employees, our and growth comparable earnings targets for current and EPS XXXX. the end We demand XXXX consumer our North extend customers, stakeholders on in everyone activities growing organization and our And referenced wishes anticipate across digits February we mid-single to today's EMEA listening today. on suppliers well to on other items Based and trends our

With Scott. over it turn the that, last I'll for time, to

Thanks, Dan.

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

of volumes lower currency pass-through in sales the business XXXX, and third our aluminum in to offset translation. to costs decreased prices, of in inflationary lower compared Third period pass-through by primarily XXXX, the the same the quarter quarter Russian of due sale the of

In To comparable to and year defer has inventory. prior facility in across pass-through from Russian plant recent to proactively permanently significantly supply reiterate lowering the Including of the across the notably offsetting volumes. business plans supply-demand of close and build expense, inflationary cost-out due SG&A our plants goods earnings reduced to of America earnings XXXX XXXX lower well-capitalized prior up our demand contractual raw the ceased compared primarily Vegas quarter, finished we third into costs savings Concord and tightened North of lower tax and of sale most same have system Las Kent, a our initiatives, the commentary, interest North benefits headwind actions call significantly, higher fixed managed and we the the and are period our to XXXX. network. costs, our quarter increased third net cost rate, in

on are more future invested And innovation and national efficiencies utilize improve growth deliver a positioned inflects to customers' a demand now without growth end we at customers' to are As customer size in scale we serve operational reclosability across future pack years, returns significant achieving when our footprint. our the spending capital. result, favorably capital,

last fill business has in at in particularly operating headwinds high demand sale. U.K. earnings the is on comparable a quarter operate as and The conditions, to successfully team continues the the million to $XX consumer track business and from its EMEA, business In of Russian navigate sale the of varying hole lapped they XXXX level

regional product XX.X% season during the are Argentina our selling segment anticipated quarter. South volatility and underway up busy the America, we In weighed fourth to mix favorably segment the quarter and earnings very quarter. in in teed prior earnings call, fourth is on the inflect on The volumes our summer in quarter earnings increased as

will outflows lower CapEx some very facilities. Cash on range related credit consistent here year's on $X to of driven CapEx in solid is tax to maturity. generating the We anticipate million very address of XX%. third key billion, prior sit XXXX be billion used a with we position by XXXX will and GAAP comparable of much commentary to in XX% and year $XXX in rate hand liquidity we expected full mid-November cash committed range to flow bond XXXX than and in projects. approximately XXXX levels. As ended quarter and $X.X cash free cash the today, of approximately the metrics, the in be targeted to earnings be our is effective DNA range be in

nonreportable we our in is the corporate clarity, fourth quarter track be what taking For we so expected with interest Full comparable experienced XXXX a costs account fourth of And XX% R&D be tax XXXX benefited had $XXX $XX to said ETR range in on be the that demand touch other low range million. year range modeling to million in third quarter results. operating are in recorded into is quarter the Full the said consistent important earnings fourth trends of million. an quarter will $XX it's quarter, expense so far the ETR, third higher in note than last quarter year undistributed to appropriate. credit previously

debt of dividend. mind. the as We EBITDA leverage the year-end cash continue receipt net And of of X.Xx. Ball in in following trend back from comparable Dan net and range intend sale, getting Xx. mentioned, expect share proceeds top its quarterly of to Last drive we leverage to declared week, XXXX And to to to Aerospace reducing range the repurchases the are

the and over so [ the me, As your Thank Dave, won't Ball part with I sure Howard team. up and shared to comments, all great pretty and I've Ray, and Dan it's you John what great to for you be XX for leaving a again I it on has the earnings in hands ] years. to be want express the my been of I'm with Dan, banner of miss company wrap long. calls. you privilege

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

Thanks, Scott.

actions aluminum will value earnings, on and to XXXX that generate in shareholder to and continue and enable you in innovative cash beyond will taken scale low-carbon global continue XXXX years execute packaging expand we many Thank believe flow everyone to will offerings best have creation to We for the improve today. value come. listening a

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

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

Scott Scott, calls the analysts frankly, industry and over research to and really chapters Ball, number for understand and and on and Howard, pleasure. all everyone's given it's thank understand on support been next behalf the you've to these you congratulations the just the of years, the I trying want of, investors all a the last on

of you fact to maybe closures there, but the too years time a how get grow you at made that and impact capacity paraphrasing I into bit of I'm the don't much to little a that I the prior might it comments. capacity, couple want your those on comments had think to

So of of to do in market and even these have it now color it's if grow you let grow you into so, or expectations couple there a longer-term after me the -- helpful. couple all? [indiscernible] say still have years tighter, any if And be is of years the years your into? region capacity couple a differently, of closures, so would of then a still at have than And less by to growth change any rate

Thanks. Yes.

and just It's over North probably the had But we the of about also America the retirements capacity couple We I've our mentioned more in And not fact. labor XXXX powder it's have like capitalization. folks times X,XXX in but shuttering dry this a the of within force. North publicly, America, North to so George. XXXX, America, from number

X%, XXX new employees standing between X% another instances XXXX. bunch in you're So to X%, facilities, and up efficiency plus XXX curve our in a terms XXXX new folks and new dipped onboarding the some of efficiencies of

So getting I've better. folks speed, to of performing much got up the combination

You're seeing it in results. the

to we're So capital. require gains productivity get won't going that

new that be in slower the years growth on, of 'XX, in obviously, obviously a little ramping than our ahead trajectory, maybe we what then couple slower line expectations, that. you all anticipated facilities will and And 'XX commented ago. The with are it's up a in a little then of it

period match to in put feel capital about really the not for of those the extended to think X to combination perspective. here of two, growth X I So we the confident time, having spend order years maybe to an it in

So our number. allocations. that's how be managing about it, going innovate we're things, always well thinking that's to how within different GAAP and that's some do outlays but There's we're our DNA and capital to and opportunity

X margin able X have some to to So of to that we able outside won't might be we'll innovative next we for and instances, up years. be be spend products, in the in on DNA. able grow. spend to to some below And new We'll periods,

Brazil you using I'll inflecting? and a it road? beverage questions release the reusable other how affect use Obviously, X may And on you, in that? talk that Aluminum Can or But had could the for Can give a to your prior. you're laying how that, turn in you and second was trajectory turned tracks about I believe, there. talked lighter good it the and quarter quickly down the can anything much driving you that's what I talked great. if more you might of us news. continue side, that's the the that, that kind weight terms you where you're add very Dan, in bit over. is some what you how within bit technology color returnable you of color earnings and it there Aerosol then trajectory quarter, see about you will in fourth think One, the package,

George. Thanks, Yes.

in So with previous Brazil. very line what was in much commentary our

their GDP aluminum uptick products Interest are major continue that had that area. better. Our is that getting cost economy rates And to position marketplace, pressures certainly strategic that off. off. is the projections of coming just partner of unhelpful The the terms They in off, coming hedge growth are inflationary a in in rolled better. the was

returnable of a also substrate aluminum. We into points of of glass saw couple percentage shipped out

of we news is the it's good all happening. things have those So mean forecast I happened. that

instance, what's demand marketplace, in So keep which Argentina, try and fourth into first a we quarter, in the with for but in quarter. we're is line there's we the additional stability that inconsistent believe, in to happening, X turning at to Brazil that with on is extend, will spot. And good least pace

-- what's the basically of feeling about good place we're we and in much with in exception South understands Argentina, on every what feeling we're what So everybody better. going America

So that continue. will I imagine would

We we will earnings in step-up see had what in a step-up in is earnings, QX. significant

hockey exception throughout So thought questions that which the we again it's in a of line the what right number year. line with Argentina we've the the playing had and of of second will at half with that beginning be that with in out stick, on year,

reuse commentary refillable and are And it's water. and in bottles, These think so bottles, then the think refill, this, small, it's think personal I care small volumes. they're the around space

offer and the better because we some the that of line. here is the reuse platform an characteristics. just in refill aerosol reuse, element environment package, to it's rigidity design of the there do the it with So weight opportunities and a things construction than And where within coil -- our product can can beverage plays the

of make we've got and it's bullish and reuse offerings, conversations white conversation in So the happen to that a we for yes, we're because all product lot in us. about we're sure Europe, that. Obviously, space want

off still very but step, small So certainly a a nice opportunity base.

beverages I'm sorry the for your water could dip no, it help and down yes, road? other there. triple in single-use the Dan,

Absolutely. No, thank you.

it sizes, seeing you out you're the to the get in conversion, Mountain smaller once anti-plastic the I So sentiment on and towns and play the beaches. think

into product could with step smaller offerings You the reuse refill. the

understands good water really good and the and product is for environment. the good, end the You it's get tastes consumer the that really

the bridge So there in I this is we're of transition. think I as here. indicated, But a emphasis

comes from Mike Leithead Our question Barclays. next with

[indiscernible] to with forward. Howard, Scott and working you forward going forward I look going

your at were There's wanted help different are us I regions, in shifts product American your American, obviously perfect. and and isn't looking public And all South customer mix? competitors. category. going I appreciate region? you quarter share much to question of X volumes underlying to market First there just But differences just X ask, than Or with it's if customers in both better understand really customer product can each attributable North on

Yes. Thank you with for South that. Start America.

Partner actually result South is looking market. few a who. One of a much you're if going swings at -- easier strategic is of it from you're see with us, the partnered in it XXX% and quarter-to-quarter, Big ] volumes QX. marketplace in to players very There is [ who's the and case America our in

them. have big volumes won look we the with position a So in better. our They market,

In in bit it some our now. the impacts inventory competitors that's look last And you had have had North can year-over-year of terms and started movement, be a a at it's until year last noisy. mass contract and we strong Destocking, very QX movement whereas shift some about exposure third of nutshell. weak very quarter share point more it mean, I in comps, that from when QX. us And of our a to America, beer. year it's less a had about

normalizing. is, I that think, of All

data. and with you're the customer think, QX mix to and So across see, moving forward beyond, writ what large, is you're scanner as in industry, alignment in going I

the look it way and that more be to volumes matter. think transparent will a for I much at marketplace

Could where And sale, on on super I just stand? then That briefly. And when think you regulatory your that maybe deal just on Great. update was you what us Aerospace just assumption the currently it you close? latest helpful. should touched approvals know is the

X most with is well signaled on half give discussions. recent we're We 'XX characterize we to can't first referenced X that too months. the still transaction Yes. about took And we that our but number as where constructive that I boundaries. closure. I believe would based within it We at much executing detail,

that it at did half of have more as don't So much first 'XX as we're deal the a is that we appropriate think I hopeful this the oneX overlap will guidance stage. be But efficient and process.

Panjabi Ghansham Our next Baird. question comes with from

growth terms has we doing market wishes modernized going to recalled a in sort I want resets just Scott, last start so a in lot's to that a function been your to at for so right this congrats over to that has you, you'll been of you the bit And on capacity future. reconcile, that to up are Is quite of the -- between both anticipating it? between years, forth. and reasons different and think been your while eventually. that the for in couple of lot market trying The year. America some as I'm to has the you support footprint about and a just has what reacceleration, way and to Dan, for against to extent. of North right? done year And we sort be to just echo and of that reacceleration with to support that my match productivity before Best the last back So Howard just is witnessed reduction been permanent done. Capacity well. a end

environment We'll volume stable absolutely be perspective. from operating there'll more a -- a

I'll about maybe bit a little more give we're bit on So color it. you and of a color thinking little how

label to behavior. to share. needed private are QX And you on a customers and to there's we behavior you Those like, because the there's tailwinds also now begin take as we're until on top to -- pricing QX things to different see Ghansham, line know, pricing from this, everybody. inflection, It our gets construct revenue. and tougher earnings we going in be then So signaled get not any listen, for saw different great we

going environment, of customers. methodical we're in think I money make to flow pricing and so And for CPI that COVID in we're around to return terms more In going more cash. our to to and prior

other the is, about So tell me top question line. then

about the with for XXX% top happen consumer. line me to against So the end promotions are going weaker depth which a is

that more so operational be flow an be of going we're a structure That's levering excellence, And in run you be back to more cash line. mark to buy got in agile, take business capital terms productive, that exactly and a this not what's to question then shares. is But point, is the going something the we'll until increases place. better, volume our more a see actual more bit on doing is of nicely working what question be we'll And off your cost out, are. what focus little more we've then inflection in we're top up really, really efficient that

just Okay. the the since then my XXXX, second quarter think of the this model correctly. I second Europe, terms first I if quarter question, negative And for was at in looked of volume

Correct.

what's out Yes, subregions you different the I of just think called happening, Europe. U.K. jog through the maybe us

a fundamentally. in it costs a our those lower across the still see We and first P&L. competitors' with half be the consumer large actually that's combination won here even all Can think Energy of is continues Europe. I across those into quarter we'll were P&L even end the lower There but bit in of and 'XX. on win to embedded are that higher living function of growth, And particular. impacts, was Yes. on the Europe the a Central rainier volumes. the market in this U.K. weaker volumes. But in We cooler, on our

bit. the driver consumer of a for is period coming for time off in main weaker here volumes a So

Our Viswanathan from next RBC Capital Markets. question Arun with comes

in footprint. point, further I continue just a categories? strength given that think mean, entry you've and low guess the be is new including at are low there at that as my some additions, first capacity that some ready-to-drink in guess? I I Would moves, some well the we absorbing these Or potentially other think rate. seeing still that is industry noted on capacity, your I just grow will you would after barriers some And it entrants to the industry question you all think could to own, of some

new will of any them entered Yes. they around candidly entrants and be having now, are longer. that don't have I I foresee X don't or right X fun not know that much

will over moving won The be it the that years. a here handful that's we'll the next one couple volume and currently growth and of be them. not necessarily forward will of players is So show being absorb the volume of reflected up that's

really be feel good able footprint moving make optimize we money more that we'll have about how be able and of we the So today, to we'll off footprint forward. to how that

also are the And when would folks fertile $XXX the about jumping [indiscernible] spend. interest to entry, I low barrier and in. plants of ground cost million for rates in challenge it's Xs Xs, not a

Would considering proceeds well how I for more as aluminum well to post plan? buybacks. as metals plan you thinking are still thoughts for And think get proceeds then just Sure. point? can on at sheet? be Is investments used the also this deleveraging -- I your to sale you the guess just the Aerospace as I Or the wanted use that that the secure was to about

No, -- is I Scott. this think

the other the proceeds to get buy to next able after-tax half our will leverage and then to and back a largely the We'll go buy back half year, shares. we shares. about in that lot think And back flow in debt down range be of cash pay line. use Xx then I to still the of

In good pretty supply terms is of chain investment, I investments. think making the

of for don't we I create lot standpoint. investments see competitive So that can opportunistically are we a things need But at big a from always if advantage. looking

next Mike Our Truist comes Securities. Roxland from question with

company and let's you help into compensate beer the Can remains of mentioned Ball volume loss? weak. by of issue call the If North us troubling out, some could how in you permanent Scott, the ] a And deal having math Light broader congrats on [ your mass potential with team. it really the that be year, that entered think will UFC? unlit about Bud recent you offset to for the and America, well-deserved highlighted Ball retirement welcome the and industry excess capacity Howard really kind company. Dan,

That's big fan. a great I'm comment. UFC a not

are in if in on time space, I that's going there. So Light shelf retailers all a a white to beer huge, know if we Bud in the or not, don't seriousness. period of but It's C-stores, drinkers be will those it -- take will

like of And they the big add capacity, us. to they're grow, folks they a to all Constellation, partner brewers. so We're major partners with continue continue and

share And volume, of offset. somewhat they so it be will natural and a as taking into step taking

place put that. Obviously, that figures for volume to Budweiser Ball is fastest in or Light the on something for out, of return the Bud selves at shelves

minor the there's -- fall that happens with are retailers. a reset We in

So we're the bigger it's terms of next first but some other going seeing uplift resets. some with mix half the year to favorable of when a in until there's not substantiate brewers, of

So that indicative the are in within to that. space going how folks the the play and of -- be industry will

Budweiser Bud a I They're spending publicly. money more. by do the amount being think it lot of they've spent on Light, said

I disproportionately and impacted all think the these Bud Light. start over and we'll in cocktails, is the from Xx Yet way shelves of terms to but space, of we to by to find months, the their be that, as reestablishing brand adversely those to think I benefit have that will benefit been that from number beer XX determined, on XX ready-to-drink we'll

second So I It is in going become good. to for the recovery will comps will and of easier next third year, start quarter look our think us. second, quarter fourth

the Budweiser of we're make did to network well I first particular, have be changes. will did because in Light, Bud going quarter. The But think any further to don't first in challenged quarter well.

over managing we're we that years. X we've top in really a here believe will of think course the got resurgent spot. and for to I X dry powder We're be the what a good next line

wanted, more it's big but it's for I big Ball. probably that's topic, you and than So certainly topic a a know

appreciate one No, year? question. remind And it. really earnings I just the in disposal that's my drivers sale the you have Can of first your to great the color. when follow-up offset dilution half next of occurs the Aerospace that it just then you from -- some us of

going one The interest in reduction biggest is to expense. be

a if Obviously, next plus worth back you're should billion dollars time. of buy over bit year. billion that going a with debt interest reduction, $XXX the back Buying couple we'll of shares, takes say, shares. of to We dollars a little million of costs couple of save

you those -- you'll period get of kind the That time. the first of that, benefit So get you'll the a see would say things. I of over difference. are don't will it the

improved and rate. as business, core going can out more to we give operating that the our run of for shooting mean, you soon detail. of terms expense we'll as interest offsetting I Yes, earnings we're in certainly be

So on the less We'll have cash-generative business output. a better be far you'll capital. sales a lot spending

and stock to buying forward. -- and combination shareholders should so of great it lot of of those we'll -- So value be return a the then are our be should back moving

out And the several flow free the the business, beverage last not generate cash that comes years, usually of Aerospace really we all the business.

flow much. it our cash very profile change So doesn't

XQ. very Thanks much, and Got luck it. good in

Our with next question comes from Jefferies. Ng Phil

facility camp much this how question You over come around is you. capacity operating fixed North of that bring you Well, incremental years. much to point? capacity some welcome, expect the taken Scott all Any at cost How Howard, savings that's on echo have does obviously XXXX? see where from color America help actions outside guys wanted with first Kent things. standpoint to sentiment. out? and out we should the to forward same the rate coming My an working Thanks And of And that cost that's for the going in looking does out. to

Yes.

It's Rexam XX-ounce acquired the cease standard the operation facility. XXXX. of a ones, folks little leased facility. and So first with this, facility, as in XXX got was Maybe give facility. you the bit will Kent this part I'll 'XX. there, started We've It X in you leased ] was half that We that [ acquisition. know, of a a as about

facility a savings with million, size additional this $XX freight. savings Typically, of a range. is bit little the in We'll of that of offset some million $XX

of $XX yes, thinking that, it million in annualized half guess year you given year, about that million $XX you to somewhere So an for $XX how number. next I've I million. neighborhood a should of be

expense, based XX% back reduced cost get the XX% of can on you year? the And next to guys savings Okay. and buybacks interest to EPS some and growth

not matter. we question. as of and sit is that I will back today, that. the will to exceed is goal we just -- in That's here close matter how our back but buy certainly to But a range great shares timing The fast get that

think facility your that of facility pieces? me, some plan question. impact one that one rebuilding for in is you the clean Do from slugs is XXXX? us moving up a just last EBITDA How Okay. out offset some to down. And that through The to there's on going I insurance know help an standpoint.

have now, manage. enough Right to supply we

EBITDA be shape. So from in an we'll standpoint, good

do product about send thinking you with we distances. something, this because footprint Phil, this long what is are can very that over where We

be We that not but hole a to So the enough recapitalize rabbit that to just will that the there, our going insurance figure customers. best place facility. go and proceeds to need what's do and to out more than evaluate down potentially to serve we're

Jeff question next JPMorgan. comes ] Sikoskus Our with from [

billion in that? due coming quarter of I to maybe first think the you the have do $XXX approach quarter. and you debt fourth in of plan How $X low-cost 'XX.

due of in Well, Yes. be very have bond opportune We've to out back coming $X a billion a in May, did turned got couple we deal a time. weeks.

we balance March, low use care to a couple cash that's here a that November in and we'll And cost. on a proceeds sheet, of bond right, in sheet balance cash of from and So take on weeks. the one then in our very the offering have lot of one the the

on possibly a then here day bit that off generate and the the cash will fourth we that last pay we revolver that. maybe in quarter can So from retire we'll to that little of

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Or When it to sell does are costs left carve the opportunities reduce over stranded Aerospace overhead? or perfectly out? there are you that business,

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of construction, minimal the overlap whether little overhang. of the I It's corporate really IT, a terms it's a that the but think an level. the bit we've it's in at in got So system on HR firewalls, the business the financial

little very overhang. So

Like $XX million. million $XX or

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Our with Gabe Securities. Fargo comes from Hajde question Wells next

and everyone, to have Howard, analysts morning, other echo at the respectively. I'll said and Good Scott Ball

lot, that we're a impact a expect about track talking to terms would line, of and said below. of top Bud made promotions you kind of that expectations lot specific weather, there's Dan, things we're and You for in comment cetera. specifically volumes, can a you Light, et But when that volumes talking about whether

of what specifically I North think you've to track. America in communicated you'd expect, what the past

guys So to call have think I it, X%. said you X%

So Ball industry I'm based comment, in of sort hand. your an have you that's what, things curious and comment that's that or if meaning a and on contracts

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Okay.

Let's South start America. with

we South it So versus our down what is. it's America Argentina, of because were That's expectations slightly Argentina.

wouldn't I Brazil, in volumes So much were read a better. more in line The it. little maybe into

government a deterioration just earnings Our also maybe in Brazil, little put place. better taxes the in of and but some Argentina unique were that the in line, it's

with So a we're of time. of volatility little dealing period going to bit there a for be

QX. have a we'll I said, significant inflection in like But

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parse in the behavior X% pricing It's X% the do And comments. growing consumer, X% commenting America, we the in We're industry. believe, X% on. to in that right experienced a in and I not significantly North out to at And to which because, now. just then obviously, months it's my XX weaker range everyone in last that is

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$XXX Scott, this the guys confirm were did basically right, And to changed want thinking have about I well, talked because has coming giving up I I'm to inflow proceeds there. to next the we working that pay of and $XXX about a don't down and think that, $X different if permanent cash about, there. if flow guys million X. directionally, part of number directionally again, you I think of when guys you leverage more sort math year. side, out I a with anything lot a year, transitioning than there's I that as financing factoring if see of or talking flow proceeds cash would start say, the wanted million year, I On to using earmarked, know credit to AR you about then $X for you think, billion next billion capital

Just curious.

Yes, you're one the working unwinding some And and that the I of that directionally actually, Howard on is and capital has number. about our things right factoring. talked of team

on is sheet leverage of use balance end it's The proceeds. whole the of part or be could whether that off the So of day, balance leverage, sheet.

do we may So an take some of to that. opportunity

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crystal [ early Okay. The ] ball. for I here. apologize George

apologies Never business. about ask exciting an to for questions wanting

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for flow cash because year lumpy reason next look will the of is one because that. So

to So totally the great agree comment, there's balance and shape at we're sheet, going in cash flow I it's which getting be of with the our year. Scott, to end the

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Adam question next with Sachs. from comes Goldman Samuelson Our

versus pockets make discussion been beer. would as in mass where obviously, Europe, been has regional you've actual demand the we covered. more in about of customer lot North by lot category especially of a a the There's of distinction U.S.? surprised where surprised areas America just Maybe Europe, the apart any think and of Is on you point specifically beer, there on downside terms and strength just at from ground

Yes.

the and now little this little the on to on the heading into third across I down Europe this weaker right commented anticipated degrees. U.S. bit detail is think I is easier. varying If give market, into board. everything It's earlier in I we more Literally consumer just quarter. call, a the you a a

So it the third label quarter. X% CSD not we actually to of category in but grow a about the tune private happened. in It's surprise, saw the has

they and -- the have couple that a think bigger I of players. So against share taken

think, I within quarter. that So distinction, was important the an

drink ready nearly still at XX%. growing are You're to cocktails

there. staggering it's So growth a trajectory

X.X%, ago. here is beer a in that's X%, us. would you Bud domestic of in with down a hole sell-throughs to bit beer which nothing can see that Light Import is are see high a to -- largely line marketplace. customer years we of us filling of some really expected. I a grew, North kind big you declining really But QX the still good is couple Hard still inflection off of and from bit what see and really hope relative surprised movement America an the think the in and where a which wait

private of down, things a the happened with brands trade the into the that have momentum from in think the momentum really CSD down to premium label. continue have area I that exception

in that's I'm main there's with very business, in talked about And the in No, aerosol, heard manufacturing the helpful. as nonreportable then obviously, sure growth Virginia. you issue you business kind the close fill of and towards not I stand and the -- plant other of to that with could getting cups some march you're kind where maybe things anything up business how about profitability that bigger that capacity. the of customers the Okay.

having conversations still with Yes, regard to cups.

breakeven, it's service. not near need wins X out You and need But it's to -- we're better do in wins year. -- of but inflect X this need term. it's significant than conversations, last. point until breakeven. not you us on the I that or away. back next to trade, We're the far for big to that transactions happen inflection we're better for to But the come execute for get not We'll year really doing bullish of toward a couple us those food to

That's I'll on. color. helpful pass right. All Okay. very it

further Fisher, time. Mr. there this at no questions are

you, -- look everybody done to that has for you We're look season. introducing and this to healthy to certainly in the thankful holiday here We a Howard of All Scott you company. future. to more safe has everything Hope near I right. We'll at appreciative forward talking year-end. the thank Frank. let and for forward

here holidays, we'll well. of Be of see the hopefully, enjoy most in months. the and couple next you So

and does call Corporation please disconnect your that the today. Quarter to a your Greetings, participation ask great you everyone. for Have That Call. Earnings line. for conference Third welcome conclude and the thank you We day, XXXX Ball

an During the presentation, all participants will be