BROOMFIELD, Colo., Oct. 30 /PRNewswire-FirstCall/ -- Ball Corporation (NYSE: BLL) today reported third quarter earnings of $101.9 million, or $1.05 cents per diluted share, on sales of $2 billion, compared to $60.9 million, or 59 cents per diluted share, on sales of $1.9 billion in the third quarter of 2007. The third quarter 2008 results include a $9.1 million ($7.2 million after tax, or 8 cents per diluted share) charge for closing costs pertaining to previously announced plant closures in Commerce, Calif.; Brampton, Ontario; and Kent, Wash. The third quarter 2007 results include an $85.6 million charge ($51.8 million after tax, or 50 cents per diluted share) for a customer settlement.

'Our overall performance in the quarter was very good, and in a difficult economic environment all but one of our business segments reported improved profitability compared to the third quarter of 2007,' said R. David Hoover, chairman, president and chief executive officer. 'As we navigate through this broader economic slowdown, we are confident that the recession resistant qualities of our packaging products will enable us to move forward with our strategy to grow our worldwide metal beverage packaging business, improve our other packaging businesses and leverage our unique aerospace competencies to generate significant free cash flow to buy back our stock and pay down debt.'

For the first nine months of 2008, Ball's results were earnings of $285.7 million, or $2.92 per diluted share, on sales of $5.83 billion, compared to $248 million, or $2.40 per diluted share, on sales of $5.63 billion in the same period in 2007. The nine-month 2008 results include a net pretax charge of $13.5 million ($10.9 million after tax, or 11 cents per diluted share) from business consolidation charges net of the gain on the sale of an Australian aerospace subsidiary. The nine-month 2007 results include the customer settlement.

The 2008 results through three quarters do not include an after-tax charge of approximately $32 million announced today for the closing of metal beverage can plants in Kansas City, Mo., and Guayama, Puerto Rico. Approximately $28 million of the charge is expected to be recorded in the fourth quarter of 2008, with the remainder recorded in the first quarter of 2009. Cost reductions associated with these closings are expected to exceed $30 million in 2009 and be $9 million cash positive on final disposition of the assets.

'During 2008, Ball is proactively managing its domestic manufacturing footprint across our packaging businesses to balance and align our manufacturing system more closely with current and future customer demand and to position Ball to improve profitability and returns in the future,' said John A. Hayes, executive vice president and chief operating officer. 'We also continue to benefit from international metal beverage container growth; however, in light of the current economic environment we are managing capacity additions to be consistent with expected demand growth. Efficient execution is critical as we take a harder look at existing businesses and in-process activities to improve overall performance.'

Metal Beverage Packaging, Americas and Asia

Operating earnings in the quarter, before business consolidation costs, were $77 million on sales of $767 million, compared to earnings of $71.2 million on sales of $797 million in the third quarter of 2007 before the customer settlement. For the first nine months, comparable segment results were earnings of $228.4 million on sales of $2.3 billion, compared to $262.2 million on sales of $2.36 billion in the first three quarters of 2007. Business consolidation costs were $0.6 million and $4 million for 2008 for the third quarter and year to date, respectively. The customer settlement in 2007 was an $85.6 million charge for both the third quarter and year to date.

North American beverage can volumes decreased approximately 6 percent in the third quarter compared to the same period in 2007, due to decreased demand for 12-ounce cans and the company's decision to walk away from unprofitable business. Ball announced actions today to further reduce its 12-ounce production capacity in North America and to consolidate specialty can capacity into fewer facilities that are better located to serve customers. Volumes in China increased nearly 20 percent in the third quarter compared to 2007 due largely to our customer mix within overall market growth.

Metal Beverage Packaging, Europe

Third quarter earnings in the metal beverage packaging, Europe, segment were $76.7 million on sales of $511.3 million, compared to $74.8 million on sales of $454.2 million in the third quarter of 2007. For the first nine months segment earnings were $201.9 million on sales of $1.5 billion, compared to $197.7 million on sales of $1.26 billion in the same period in 2007. Volumes increased 5 percent in the quarter compared to 2007 and are up nearly 8 percent year-to-date, led by growth in Western Europe, particularly in the United Kingdom.

Metal Food & Household Products Packaging, Americas

Results in the company's metal food and household products packaging, Americas, segment continue to improve. Segment earnings for the third quarter before a $4.5 million charge related to a plant closure were $15.8 million on sales of $365 million, compared to $14.5 million on sales of $350 million in the third quarter of 2007. For the first nine months of 2008, earnings were $44.9 million, before the charge, on sales of $912 million, compared to $25.4 million on sales of $912 million in 2007.

The restructuring plan originally announced in the third quarter of 2007 is on schedule and on budget and is still expected to yield annualized cost savings in excess of $15 million in 2009.

Plastic Packaging, Americas

Third quarter results in the plastic packaging, Americas, segment were earnings of $5.3 million before a $4 million charge for a plant closure, on sales of $184 million, compared to $7.7 million on sales of $195 million in the third quarter of 2007. For the first three quarters of 2008, results were earnings of $15.8 million before an $8.3 million charge for a plant closure, on sales of $574 million, compared to $17.1 million on sales of $580 million in the same period in 2007.

Plastic container volumes decreased 13 percent in the quarter compared to the prior year as customers continued to see lower traffic through convenience stores and a decrease in bottled water sales.

Aerospace and Technologies

Segment earnings in the quarter were $18.4 million on sales of $181 million, compared to $18.3 million on sales of $196 million in the third quarter of 2007. For the first nine months of 2008, earnings were $56 million before a $7.1 million gain on the sale of an Australian subsidiary, on sales of $550 million, compared to $53.5 million on sales of $597 million in the first three quarters of 2007.

As a result of the U.S. Presidential election year, Congress passed a continuing budget resolution which tends to delay some new program awards.