O-I REPORTS SECOND QUARTER 2013 RESULTS Earnings on par with prior year as benefits from footprint optimization offset soft demand
(Thomson Reuters ONE) -
FOR IMMEDIATE RELEASE
O-I REPORTS SECOND QUARTER 2013 RESULTS
Earnings on par with prior year
as benefits from footprint optimization offset soft demand
PERRYSBURG, Ohio (July 24, 2013) - Owens-Illinois, Inc. (NYSE: OI) today
reported financial results for the second quarter ending June 30, 2013.
Highlights
* Second quarter 2013 earnings from continuing operations attributable to the
Company were $0.81 per share (diluted), compared with $0.81 per share in the
same period of 2012. [1]
* Operating profits in Europe and Asia Pacific were higher, primarily driven
by the benefits of ongoing footprint optimization.
* Global volumes were down approximately 1 percent. Wine gains in all regions
were more than offset by softness in beer markets.
* The Company reaffirms its full year 2013 free cash flow outlook of at least
$300 million.
Commenting on the Company's second quarter results, Chairman and Chief Executive
Officer Al Stroucken said, "The Company performed in line with our expectations,
notwithstanding weaker than expected demand. We are squarely focused on
execution, especially asset optimization and wine share recovery in Europe, as
well as labor productivity savings in North America. These actions are allowing
us to achieve our targets despite headwinds."
Operational highlights
Net sales in the second quarter of 2013 were $1.78 billion, similar to the prior
year second quarter. Volume, in terms of tonnes shipped, decreased by 1 percent
year-over-year. Unfavorable weather conditions in Europe and North America, as
well as macroeconomic pressures in South America, led to lower beer volumes
globally. This was partially offset by global gains in wine and double digit
growth overall in Southeast Asia. The 2 percent increase in sales prices
globally offset cost inflation.
In the second quarter of 2013, segment operating profit was $267 million, in
line with the prior year. The Company achieved improved profitability in Europe
and Asia Pacific due to ongoing actions to optimize its footprint. South
America's profit was negatively impacted by a higher level of planned furnace
rebuilds.
Financial highlights
Net interest expense was $4 million lower than the prior year, primarily due to
debt reduction and lower interest rates as the Company continues to strengthen
its financial flexibility.
The Company's leverage ratio (net debt to EBITDA) was 2.9 times at the end of
the second quarter of 2013, compared with 2.8 times in the previous year
quarter. The Company expects to improve its leverage ratio to approximately
2.5 times by the end of the year.
During the quarter, the Company continued to execute on its capital allocation
priorities by purchasing approximately $10 million of outstanding stock.
Outlook
Commenting on the Company's outlook, Stroucken said, "Our plans called for an
environment marked by slow growth globally and macroeconomic volatility. We are
seeing just that, with modest contraction in Europe, stability in North America,
and slower expansion in South America. Currency headwinds, however, particularly
in Brazil and Australia, are more pronounced than expected.
"We will continue to execute on our priorities that impact the bottom line in
the near term, principally structural cost reductions, asset optimization, and
managing production volatility. In the back half of the year, we expect higher
volumes globally, partly driven by our efforts to recapture wine share in
Europe. We remain steadfast in our commitment to generate higher earnings and
cash flow, and to allocate capital in ways that enhance our financial
flexibility and generate shareholder value."
Management continues to expect free cash flow of at least $300 million in 2013.
The Company has tightened the expected range of adjusted EPS in 2013 to $2.65 to
$2.85 per share based on results to date, aforementioned currency and
macroeconomic headwinds, and concerted management actions to reduce costs.
Note 1
The table below describes the items that management considers not representative
of ongoing operations.
Three months ended June 30
$ Millions, except per-share amounts
--------------------------------
2013 2012
---------------- ---------------
Earnings EPS Earnings EPS
---------------- ---------------
Earnings from Continuing Operations $135 $0.81 $134 $0.81
Attributable to the Company
Items that management considers not
representative of ongoing operations
consistent with Segment Operating Profit
Restructuring, asset impairment and related - - - -
charges
Charges for note repurchase premiums and - - - -
write-off of finance fees
Adjusted Net Earnings $135 $0.81 $134 $0.81
Six months ended June 30
$ Millions, except per-share amounts
--------------------------------
2013 2012
---------------- ---------------
Earnings EPS Earnings EPS
---------------- ---------------
Earnings from Continuing Operations $214 $1.29 $256 $1.54
Attributable to the Company
Items that management considers not
representative of ongoing operations
consistent with Segment Operating Profit
Restructuring, asset impairment and related 9 0.05 - -
charges
Charges for note repurchase premiums and 11 0.07 - -
write-off of finance fees
Adjusted Net Earnings $234 $1.41 $256 $1.54
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. With revenues of $7.0 billion in 2012, the Company is
headquartered in Perrysburg, Ohio, USA, and employs approximately 22,500 people
at 79 plants in 21 countries. O-I delivers safe, sustainable, pure, iconic,
brand-building glass packaging to a growing global marketplace. O-I's Glass Is
Life(TM) movement promotes the widespread benefits of glass packaging in key
markets around the globe. For more information, visit www.o-i.com or
www.glassislife.com.
Regulation G
The information presented above regarding adjusted net earnings relates to net
earnings 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. Management uses this non-GAAP
information principally for internal reporting, forecasting, budgeting and
calculating compensation payments. 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 this non-GAAP information principally for internal reporting,
forecasting and budgeting. 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 - www.o-
i.com/investors.
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, 2012 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 July 25, 2013
O-I CEO Al Stroucken and CFO Steve Bramlage will conduct a conference call to
discuss the Company's latest results on Thursday, July 25, 2013, 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, www.o-i.com/investors, 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 July 25.
Ask for the O-I conference call. A replay of the call will be available on the
O-I website, www.o-i.com/investors, for 90 days following the call.
Contact: Erin Crandall, 567-336-2355 - O-I Investor Relations
Lisa Babington, 567-336-1445 - O-I Corporate Communications
O-I news releases are available on the O-I website at www.o-i.com.
O-I's third quarter 2013 earnings conference call is currently scheduled for
Thursday, October 31, 2013, at 8:00 a.m., Eastern Time.
[1] In the second quarter of 2013 and the corresponding period of 2012, adjusted
earnings were equal to GAAP earnings. Adjusted earnings refers to earnings from
continuing operations attributable to the Company, excluding items management
does not consider representative of ongoing operations, as cited in Note 1 in
this release.
O-I Second Quarter 2013 Earnings Presentation:
http://hugin.info/150659/R/1718548/571709.pdf
O-I Second Quarter Earnings Release:
http://hugin.info/150659/R/1718548/571764.pdf
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other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Owens-Illinois, Inc. via Thomson Reuters ONE
[HUG#1718548]
Unternehmensinformation / Kurzprofil:
Datum: 24.07.2013 - 22:04 Uhr
Sprache: Deutsch
News-ID 281622
Anzahl Zeichen: 15118
contact information:
Town:
Perrysburg, OH
Kategorie:
Business News
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