(Reuters) – Ball Corp reported a second-quarter profit on Thursday that beat analysts’ estimates as the beer can maker benefited from cost-reduction plans and lower input costs.
The company, whose customers include Corona beer maker Constellation Brands, has been streamlining its business and cutting down on higher cost facilities.
In February, Ball Corp completed the sale of its aerospace business to focus on aluminum packaging – demand for which has been growing as companies look for more sustainable alternatives to plastic.
Still, muted consumer spending on food and beverages in North America and Europe due to sticky inflation has prompted consumer goods companies to temper inventories, denting demand.
The Colorado-based company reported sales of $1.47 billion at its beverage packaging business in North and Central America, missing estimates of $1.52 billion, according to LSEG data.
Volumes at its beverage packaging segment were also lower in South America, hurt by “disruptive economic and operating conditions in Argentina,” according to the company.
Ball Corp forecast annual adjusted profit to grow by a mid-single-digit plus percentage. Analysts had expected full-year earnings to increase 5.4%.
On an adjusted basis, the company earned 74 per share, beating estimates of 70 cents.
Ball Corp’s net sales for the quarter ending June 30 fell 3.5% to $2.96 billion, missing estimates of $3.10 billion.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Shounak Dasgupta)
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