Bli medlem
Bli medlem

Du är här


Owens-Illinois, Inc.: O-I REPORTS FIRST QUARTER 2014 RESULTS; Earnings Increase Bolstered by Sales Volume Growth


Earnings Increase Bolstered by Sales Volume Growth

PERRYSBURG, Ohio (Apr. 29, 2014)
- Owens-Illinois, Inc. (NYSE: OI) today reported financial results for the
first quarter ending March 31, 2014.


* First quarter 2014 earnings from continuing operations attributable to the
Company were $0.62 per share (diluted), compared with $0.48 per share in
the same period of 2013. Excluding certain items management considers not
representative of ongoing operations, adjusted earnings[1]were $0.62 per
share compared with $0.60 per share in the prior year.
* Global volumes were up 2 percent for the third consecutive quarter.
Broad-based gains in Europe and North America, and flat shipments in South
America were partially offset by declines in Asia Pacific.
* Segment operating profit margin expanded more than 300 basis points in
Europe , driven by volume and structural cost improvements from the asset
optimization program. Operating profit declined in North America primarily
due to logistics headwinds from adverse weather. Profitability in both
South America and Asia Pacific suffered from double digit declines in key
currencies and lower production volumes.
* Interest expense declined in the quarter as the Company benefited from
ongoing deleveraging efforts, which continue to enhance financial

Commenting on the Company's first quarter results, Chairman and Chief
Executive Officer Al Stroucken said, "In Europe, we were especially pleased
to see a positive volume impact coupled with the clear benefits from our
restructuring efforts. Record-setting snow and cold in North America dampened
profitability in the quarter, despite modest volume growth. Demand in South
America exceeded our previous guidance, where strong volume gains in Brazil
offset declines in the Andean countries. Financial performance in Asia
Pacific suffered from expected volume declines and delayed recovery of cost
inflation in mature markets. Overall, higher year-on-year earnings
demonstrate our ability to deliver strong financial results in the face of
external headwinds."

Operational highlights
Net sales in the first quarter of 2014 were $1.6 billion, on par with the
prior year first quarter. Price was up modestly on a global basis, as a
slight decline in Europe was offset by broad-based price gains in the
Americas. Currency was an overall headwind as a weaker Brazilian real and
Australian dollar more than offset a stronger Euro.

Sales volume, in terms of tonnes shipped, increased 2 percent year-over-year.
Europe volume increased 6 percent, driven by strong beer performance, as well
as wine. Adverse weather conditions in North America did not materially
impede sales volumes, which grew 2 percent. This was driven by beer and
non-alcoholic beverages, such as juices and iced coffees. In South America,
Brazil reported higher sales volumes, which were offset by weakness in the
Andean countries. Within Asia Pacific, the Company's smaller footprint in
China and ongoing weak demand in mature markets caused a nearly 10 percent
decline in volumes in the region.

Segment operating profit was $218 million, down $8 million compared with the
prior year first quarter. Europe's operating profit expanded nearly 50
percent, driven by volume gains across most categories. As expected, the
region continues to benefit from asset optimization. In North America sales
and production volumes were higher. However, those gains were more than
offset by substantially higher supply chain costs due to extreme weather

Lower profitability in South America was primarily due to a higher level of
planned furnace rebuild activity and a double digit devaluation of the
Brazilian real. Asia Pacific profit was dampened by lower volume and higher
costs, particularly energy. The region will begin recovering this inflation
in the second half of 2014.

Financial highlights
Net interest expense[2]was $3 million lower than the prior year, primarily due
to lower interest rates and to the Company's ongoing efforts to reduce debt.
Commenting on the Company's outlook for the second quarter, Stroucken said,
"Conditions in Europe continue to slowly stabilize. In North America, the
lingering impact of logistics challenges will likely weigh on profitability
in the second quarter. In South America, we anticipate modest recovery over
the lackluster demand in the prior year period. We expect sales in China to
continue to decline due to our plant closures there, and do not yet see
recovery in the mature markets of Asia Pacific. We will stay the course to
deliver our long-term financial commitments by continuing to focus on taking
out costs while maintaining disciplined capital allocation."

The Company's expected adjusted EPS range of $2.80 to $3.20 per share in 2014
remains unchanged, as does its free cash flow projection of approximately
$350 million for the year.

About O-I
Owens-Illinois, Inc. (NYSE: OI) is the world's largest glass container
manufacturer and preferred partner for many of the world's leading food and
beverage brands. The Company had revenues of $7.0 billion in 2013 and employs
approximately 22,500 people at 77 plants in 21 countries. With global
headquarters in Perrysburg, Ohio, USA, O-I delivers safe, sustainable, pure,
iconic, brand-building glass packaging to a growing global marketplace. For
more information,

O-I's Glass Is Life(TM) movement promotes the widespread benefits of glass
packaging in key markets around the globe. Join us in the #betteringlass

Regulation G
The information presented above regarding adjusted net earnings relates to net
earnings from continuing operations attributable to the Company exclusive of
items management considers not representative of ongoing operations and does
not conform to U.S. generally accepted accounting principles (GAAP). It
should not be construed as an alternative to the reported results determined
in accordance with GAAP. Management has included this non-GAAP information to
assist in understanding the comparability of results of ongoing operations.
Further, the information presented above regarding free cash flow does not
conform to GAAP. Management defines free cash flow as cash provided by
continuing operating activities less capital spending (both as determined in
accordance with GAAP) and has included this non-GAAP information to assist in
understanding the comparability of cash flows. Management uses non-GAAP
information principally for internal reporting, forecasting, budgeting and
calculating compensation payments. Management believes that the non-GAAP
presentation allows the board of directors, management, investors and
analysts to better understand the Company's financial performance in
relationship to core operating results and the business outlook.

The Company routinely posts important information on its website

Forward looking statements
This document contains "forward looking" statements within the meaning of
Section 21E of the Securities Exchange Act of 1934 and Section 27A of the
Securities Act of 1933. Forward looking statements reflect the Company's
current expectations and projections about future events at the time, and
thus involve uncertainty and risk. The words "believe," "expect,"
"anticipate," "will," "could," "would," "should," "may," "plan," "estimate,"
"intend," "predict," "potential," "continue," and the negatives of these
words and other similar expressions generally identify forward looking
statements. It is possible the Company's future financial performance may
differ from expectations due to a variety of factors including, but not
limited to the following: (1) foreign currency fluctuations relative to the
U.S. dollar, specifically the Euro, Brazilian real and Australian dollar, (2)
changes in capital availability or cost, including interest rate fluctuations
and the ability of the Company to refinance debt at favorable terms, (3) the
general political, economic and competitive conditions in markets and
countries where the Company has operations, including uncertainties related
to the economic conditions in Australia, Europe and South America,
disruptions in capital markets, disruptions in the supply chain, competitive
pricing pressures, inflation or deflation, and changes in tax rates and laws,
(4) consumer preferences for alternative forms of packaging, (5) cost and
availability of raw materials, labor, energy and transportation, (6) the
Company's ability to manage its cost structure, including its success in
implementing restructuring plans and achieving cost savings, (7)
consolidation among competitors and customers, (8) the ability of the Company
to acquire businesses and expand plants, integrate operations of acquired
businesses and achieve expected synergies, (9) unanticipated expenditures
with respect to environmental, safety and health laws, (10) the Company's
ability to further develop its sales, marketing and product development
capabilities, and (11) the timing and occurrence of events which are beyond
the control of the Company, including any expropriation of the Company's
operations, floods and other natural disasters, events related to
asbestos-related claims, and the other risk factors discussed in the
Company's Annual Report on Form 10-K for the year ended December 31, 2013 and
any subsequently filed Quarterly Report on Form 10-Q. It is not possible to
foresee or identify all such factors. Any forward looking statements in this
document are based on certain assumptions and analyses made by the Company in
light of its experience and perception of historical trends, current
conditions, expected future developments, and other factors it believes are
appropriate in the circumstances. Forward looking statements are not a
guarantee of future performance and actual results or developments may differ
materially from expectations. While the Company continually reviews trends
and uncertainties affecting the Company's results of operations and financial
condition, the Company does not assume any obligation to update or supplement
any particular forward looking statements contained in this document.

Conference call scheduled for April 30, 2014

O-I CEO Al Stroucken and CFO Steve Bramlage will conduct a conference call to
discuss the Company's latest results on Wednesday, April 30, 2014, at 8:00
a.m., Eastern Time. A live webcast of the conference call, including
presentation materials, will be available on the O-I
website,, in the Presentations&Webcast section.

The conference call also may be accessed by dialing 888-733-1701 (U.S. and
Canada) or 706-634-4943 (international) by 7:50 a.m., Eastern Time, on April
30. Ask for the O-I conferenc...

Författare Hugin

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.