May 6 (Reuters) - Aluminum can maker Ball Corp ( BALL )
on Tuesday raised its annual profit forecast after beating
analysts' estimates for first-quarter results, betting on
resilient demand and a tight leash on costs.
The company expects full-year comparable profit growth to be
between 11% and 14%, compared to its previous forecast of a
growth of more than 10%.
Ball said on Tuesday the direct impact from U.S. President
Donald Trump's 25% tariff on aluminum was manageable, and it was
working to mitigate the effects of volatility in the metal's
premium prices.
The company also emphasized on local sourcing and
manufacturing to reduce exposure to international trade
fluctuations.
Weak forecasts from the company's customer Constellation
Brands ( STZ ) and other packaged foods companies including
Kraft Heinz ( KHC ) and PepsiCo ( PEP ) had stoked concerns over
sluggish demand for packaging material.
Ball Corp's ( BALL ) aluminum cups and bottles are in demand among
environmentally conscious consumers, given their sustainable
nature and recycling-heavy sourcing, compared to plastic and
processing-intensive tin-coated steel.
The company's first-quarter revenue rose 7.8% to $3.10
billion, compared with estimates of $2.89 billion, according to
data compiled by LSEG.
Global aluminum packaging shipments increased 2.6%, while
its selling, general and administrative costs declined about
37%.
Excluding items, the company earned a profit of 76 cents per
share, beating expectations of 70 cents.