Ball Corporation faces risks from a global economic environment with high inflation, supply chain disruptions, and potential recession. They are vulnerable to major customer or supplier issues, and rising raw material costs. The company's Argentinean operations face currency devaluation and government policies. The aluminum cups business faces uncertain growth and potential impairment loss. Litigation, environmental claims, and pension plan risks are also noted. Debt covenants and interest rate risk are present.
Financial Upside
The divestiture of the aerospace business generated significant cash proceeds ($5.42B), providing substantial liquidity and funding for share repurchases ($1.4B) and dividends. Strong customer relationships and a diversified customer base support sales growth. The company's packaging segments show potential for increased sales and earnings, particularly in North and Central America, EMEA, and South America. Lower interest expense and higher interest income contribute to improved earnings.
