(Reuters) - Aluminum packaging maker Ball Corp (NYSE:BALL) 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.