Ball Corporation announced today that the company has acquired an additional 10.1 percent economic interest in its Brazilian beverage packaging joint venture, Latapack-Ball Embalagens, Ltda.
The transaction increases Ball's overall ownership in the joint venture to approximately 60 percent. Latapack-Ball's results will be consolidated and reported in Ball Corporation's metal beverage packaging, Americas and Asia, segment beginning with the third quarter of 2010. Ball expects to report a gain in the third quarter on its previous ownership interest in Latapack-Ball.
Latapack-Ball operates metal beverage packaging manufacturing plants in Tres Rios, Jacarei and Salvador, Brazil, and is expected to have 2010 sales of approximately $360 million.
"Ball's roots in Brazil reach back more than 15 years, and the Brazilian market has become an increasingly important region for our products and our company," said R. David Hoover, Ball's chairman and chief executive officer. "The business is experiencing significant growth and we expect it to contribute to our future success, though the impact on Ball's earnings per share this year will be limited, as we already report 50 percent of the net income of the joint venture."
Ball also announced that Pedro Henrique Mariani has joined the company as an advisory director. Mariani, 57, is one of the executive officers and president of the board of directors of BancoBBM, one of Brazil's leading financial institutions.
"Pedro Henrique has worked with Ball for many years as a partner in our growing Brazilian joint venture, and his extensive knowledge and experience has been an important part of its success," Hoover said. "As an advisory director, Pedro Henrique will provide valuable advice and counsel to Ball and its board of directors."
Mariani was president of ANBID (Brazilian Association of Investment Banks) between 1996 and 2000 and a member of the Brazilian Financial System Council between 1988 and 1996. Currently he is a member of the boards of directors of Odebrecht S.A. and of FEBRABAN (Brazilian Federation of Banks).
Ball Corporation is a supplier of high-quality packaging for beverage, food and household products customers, and of aerospace and other technologies and services, primarily for the U.S. government. Ball Corporation and its subsidiaries employ more than 14,000 people worldwide and reported 2009 sales of more than $7.3 billion including discontinued operations. For the latest Ball news and for other company information, please visit http://www.ball.com/.
This release contains "forward-looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates" and similar expressions are intended to identify forward-looking statements. Such statements are subject to risks and uncertainties which could cause actual results to differ materially from those expressed or implied. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key risks and uncertainties are summarized in filings with the Securities and Exchange Commission, including Exhibit 99.2 in our Form 10-K, which are available at our website and at www.sec.gov. Factors that might affect our packaging segments include fluctuation in product demand and preferences; availability and cost of raw materials; competitive packaging availability, pricing and substitution; changes in climate and weather; crop yields; competitive activity; failure to achieve anticipated productivity improvements or production cost reductions; mandatory deposit or other restrictive packaging laws; changes in major customer or supplier contracts or loss of a major customer or supplier; and changes in foreign exchange rates or tax rates. Factors that might affect our aerospace segment include: funding, authorization, availability and returns of government and commercial contracts; and delays, extensions and technical uncertainties affecting segment contracts. Factors that might affect the company as a whole include those listed plus: accounting changes; changes in senior management; the current global recession and its effects on liquidity, credit risk, asset values and the economy; successful or unsuccessful acquisitions, joint ventures or divestitures; integration of recently acquired businesses; regulatory action or laws including tax, environmental, health and workplace safety, including in respect of climate change, or chemicals or substances used in raw materials or in the manufacturing process; governmental investigations; technological developments and innovations; goodwill impairment; antitrust, patent and other litigation; strikes; labor cost changes; rates of return projected and earned on assets of the company's defined benefit retirement plans; pension changes; reduced cash flow; interest rates affecting our debt; and changes to unaudited results due to statutory audits or other effects.
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SOURCE: Ball Corporation