(Reuters) – Aluminum packaging maker Ball Corp beat estimates for third quarter profit on Thursday buoyed by higher prices for its beverage containers as consumers and bottlers seek more sustainable options.
Price increases, along with a recent decline in aluminum prices and enhanced cost-saving initiatives in logistics and supply chain management, boosted profits.
Ball has benefited from the growing popularity of ready-to-cook and ready-to-eat products among environmentally conscious consumers who prefer sustainable packaging options like aluminum over plastic and processing-intensive tin-coated steel.
However, the company reported a 5% revenue decline in its North and Central American beverage packaging business, posting $1.46 billion in sales, falling short of the $1.57 billion estimate compiled by LSEG. Volumes in this segment dropped by 3.1%.
Ball Corp’s third-quarter net sales fell about 1% to $3.08 billion, compared with estimates of $3.13 billion.
Excluding one-time items, the company earned a profit of 91 cents per share, exceeding expectations of 85 cents per share.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Tasim Zahid)
