Zobacz wszystkie

Owens-Illinois, Inc.: O-I REPORTS SECOND QUARTER 2014 RESULTS; Positive volume trends in Europe and the Americas

2014-07-29 22:05:00
Ticker Giełda ISIC Kraj Miasto
OI XNYS U.S.A. Perrysburg, OH














FOR IMMEDIATE RELEASE





O-I REPORTS SECOND QUARTER 2014 RESULTS

Positive volume trends in Europe and the Americas





PERRYSBURG, Ohio (July 29, 2014) - Owens-Illinois, Inc. (NYSE: OI) today

reported financial results for the second quarter ending June 30, 2014.





Highlights

* Second quarter 2014 earnings from continuing operations attributable to the

Company were $0.80 per share (diluted), compared with $0.81 per share in the

same period of 2013.[1]

* Most regions generated year-over-year volume growth for the quarter. The

Company reported strong gains in South America, modest growth in Europe and

North America, and lower volume in Asia Pacific.

* Higher segment operating profit in South America was offset by modest

declines in the other regions. Strong volume growth in Brazil and a

promising increase in demand in the Andean countries boosted profitability

in South America.

* Net interest expense was consistent with prior year.





Commenting on the Company's second quarter results, Chairman and Chief Executive

Officer Al Stroucken said, "Our performance in the second quarter was in line

with our expectations. We are pleased with the positive volume growth we

achieved in three of our four regions. Global volumes were up - excluding

footprint reductions undertaken in China earlier in the year. Higher

profitability in South America, likely a benefit from the World Cup, was

modestly overshadowed by supply chain challenges in North America. And in

Europe, production downtime associated with engineering activities related to

our asset optimization program, as well as furnace rebuilds, mitigated the

benefits of higher sales volumes."





Operational highlights

Net sales in the second quarter of 2014 were $1.8 billion, up 1 percent from the

prior year second quarter. Price was up 1 percent on a global basis, as a slight

decline in Europe was offset by broad-based price gains in the Americas.

Currency had a positive impact on the top line, with a stronger Euro more than

offsetting a weaker Brazilian real and Australian dollar.



Sales volume, in terms of tonnes shipped, increased in three of the Company's

four regions, but global volume decreased 1 percent year-over-year due to a

strong contraction in Asia Pacific.  Europe volume increased 2 percent, driven

by a strong performance in beer, as well as gains in wine and food. North

America volume grew 1 percent, with increases in beer and non-alcoholic

beverages, such as juices and iced coffees. South America volume increased 8

percent, buoyed by strong demand in Brazil and volume gains in the Andean

countries. Volume in Asia Pacific contracted 27 percent due primarily to the

Company's smaller footprint in China, as well as ongoing weak demand in

Australia.



Segment operating profit was $262 million, down $5 million compared with the

prior year second quarter. South America's operating profit expanded more than

40 percent, driven in part by the aforementioned volume gains. In Europe, profit

was down modestly as the benefit from higher sales volume and ongoing savings

from the asset optimization program were more than offset by lower production

volume.



North America reported lower operating profit in the quarter. Higher supply

chain costs and a less favorable sales mix outweighed slightly higher sales and

production volumes. Profitability in Asia Pacific was impacted by lower volume

and higher costs, particularly energy.



Corporate and other costs improved by $5 million compared with prior year,

primarily driven by lower pension expense.



Financial highlights

Net interest expense was flat with prior year. The Company repurchased $12

million in stock during the second quarter of 2014.



Outlook

Commenting on the Company's outlook for the third quarter, Stroucken said, "We

expect demand in Europe and North America to remain stable, yet we anticipate

better performance in Europe on higher production volume and asset optimization

savings. North America will likely see slightly lower production due to higher

planned furnace maintenance. While we lack visibility into post World Cup demand

in Brazil, we expect to benefit from volume growth in the Andean countries, as

well as the lack of several one-off, unfavorable events in 2013. Our

expectations in Asia Pacific remain subdued, with sales declines in China due to

our plant closures earlier in the year, and persistently low demand in

Australia. For the Company, we project higher earnings year on year. We will

stay the course to deliver our long-term financial commitments by focusing on

cost reduction and maintaining disciplined capital allocation."



The Company now expects adjusted EPS in the range of $2.85 to $3.05 per share

for the full year 2014. The Company's free cash flow projection of approximately

$350 million for the year remains unchanged.



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, visit www.o-i.com.



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

conversation at www.glassislife.com.



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 - 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 economic and social conditions,

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 July 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, July 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, 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 30.

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:          Sasha Sekpeh, 567-336-5128 - 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 2014 earnings conference call is currently scheduled for

Wednesday, October 29, 2014, at 8:00 a.m., Eastern Time.





--------------------------------------------------------------------------------



[1] There were no items management considers not representative of ongoing

operations in either comparison period. 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

the table entitled Reconciliation to Adjusted Earnings in this release.



2Q14 Earnings Presentation:

http://hugin.info/150659/R/1842790/641481.pdf



2Q14 Earnings Release:

http://hugin.info/150659/R/1842790/641480.pdf







This announcement is distributed by GlobeNewswire on behalf of

GlobeNewswire 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 GlobeNewswire

[HUG#1842790]





podstrony