Ball Corp., the aluminum can giant based in Westminster, has relatively good news for investors, even as President Donald Trump’s trade war takes direct aim at its core business.
The company, which is the namesake of Ball Arena in Denver, met Wall Street’s earnings targets during the third quarter, according to a financial update released Tuesday. Ball’s stock rose following the report.
“While we remain attentive to uncertainties related to tariffs and consumer pressures, particularly in the U.S., we’re confident in our ability to proactively manage these dynamics and sustain our momentum,” CEO Dan Fisher said during a conference call with investors.
Like just about every large corporation in the U.S., Ball is adjusting its business plans to account for Trump’s trade war. Tariffs on aluminum jumped from 10 percent to 25 percent in March. Moreover, aluminum import taxes expanded to include Canada and Mexico, trading partners that were previously exempt.
Ball is raising prices on aluminum cans by roughly 25 percent to 30 percent to account for tariffs, Fisher said.
“Right now it’s negligible in terms of per can price, but that’s what’s being passed through now in North America,” Fisher said.
One of Ball’s big manufacturing plants is in Mexico. The CEO flagged reduced capacity at that facility as a drag on its business during a previous quarterly update over the summer.
This week, executives said they’re making progress on managing supply chain disruptions related to shipping from the plant in Mexico.
“We’re working through a number of plans at the moment … on the Mexico piece,” Fisher said during the call.