(Reuters) -Ball Corp raised its annual profit forecast on Tuesday, after beating second-quarter results, fueled by resilient demand for its aluminum cans in key markets of North America and Europe, sending its shares up 2% in premarket trading.
Ball witnessed a 4.1% rise in global aluminum packaging shipments during the quarter, up from a 2.6% rise in the prior three months. This was driven by demand from packaged food firms, as consumers opted for canned foods and beverages amid sticky inflation, prompting them to cook more at home.
The company, serving clients like PepsiCo, Coca-Cola and Constellation Brands, increased beverage packaging sales in North and Central America to $1.61 billion, from $1.47 billion last year.
The manufacturer of aluminum cups, bottles and aerosol cans now expects comparable 2025 earnings to grow between 12% and 15%, up from a prior range of 11% to 14% growth.
However, tariffs on steel and aluminum have pushed up input costs for companies such as Ball.
“We continue to view the direct impact from announced tariffs as manageable and are actively working with our customers to mitigate the effects of volatility in aluminum premium prices,” the company said on Tuesday.
Ball CEO Daniel Fisher said the company was tightly managing its costs as it expects potential geopolitical uncertainties and market volatility in the second half of the year.
Excluding items, it earned a profit of 90 cents per share in the quarter, beating expectations of 87 cents per share, according to data compiled by LSEG.
Its revenue jumped 7.8% to $3.34 billion, above estimates of $3.12 billion.
(Reporting by Anshi Sancheti in Bengaluru; Editing by Vijay Kishore)
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