Ball Corporation

This is our first report on Ball Corporation, the global leader in the manufacture of aluminum beverage cans. The company delivered an all-around beat in its last quarterly result. Shipments of the EMEA beverage can segment increased in this quarter. The aluminum aerosol facilities of the company achieved ASI certifications. Its global aerosol and extruded aluminum bottle business has been benefitting from its new reusable, refillable bottle offerings. This includes its recent alliance with Boomerang as well as other water brands and, for personal care products, higher recycled content aluminum bottles. The management recently divested its packaging business of Russian Beverage for $530 million to Arnest Group. They have also continued the construction of two facilities in EMEA. The aerospace team of the company delivered robust program execution and a strong backlog. We initiate coverage on the stock of Ball Corporation with a ‘Hold’ rating.