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Owens-Illinois, Inc. : O-I REPORTS SECOND QUARTER 2013 RESULTS Earnings on par with prior year as benefits from footprint



Owens-Illinois, Inc. : O-I REPORTS SECOND QUARTER 2013 RESULTS Earnings on par
  with prior year as benefits from footprint optimization offset soft demand

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.

$ Millions, except per-share amounts              Three months ended June 30
                                                     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

$ Millions, except per-share amounts               Six months ended June 30
                                                     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 Earnings Release
O-I Second Quarter 2013 Earnings Presentation

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This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and 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
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