2007 full year results exceed expectations PERRYSBURG, Ohio, Jan.
30 /PRNewswire-FirstCall/ -- Owens-Illinois, Inc. (NYSE:OI) today
reported financial results for the fourth quarter and full year
ending December 31, 2007. (Logo:
http://www.newscom.com/cgi-bin/prnh/20050412/CLTU028LOGO ) Fourth
Quarter Net Sales Increase 15.2% The Company reported net sales
from continuing operations of $1.957 billion for the fourth quarter
of 2007, compared with $1.699 billion a year ago, an increase of
$258 million or 15.2%. Approximately two-thirds of the quarter's
sales increase is attributable to favorable currency translation.
Improved prices and product sales mix accounted for the remaining
one third of the sales increase. Sales volume, measured in terms of
glass tons shipped was down approximately 1% in the fourth quarter
of 2007, compared with the same quarter in 2006 and for the full
year, volume was up 2%. Fourth Quarter Results Improve by More Than
$100 Million The Company reported earnings from continuing
operations for the fourth quarter of 2007 of $14.6 million compared
with a fourth quarter loss of $90.0 million, a year ago. Both
quarters include items that management considers not representative
of ongoing operations. A description of these items is shown below
in Note 1. Exclusive of these items, 2007 fourth quarter earnings
from continuing operations rose to $167.4 million, compared with
$35.7 million last year. The increase in earnings excluding Note 1
items was primarily attributable to better operating profit margins
driven by: (1) improved prices and product sales mix, (2) lower
warehouse, delivery and other cost of sales and (3) reduced
operating expenses. Favorable foreign currency translation and a
lower worldwide effective tax rate also contributed to the earnings
improvement. Fourth Consecutive Quarter of Positive EPS The Company
earned $0.06 per share (diluted) from continuing operations in the
fourth quarter of 2007 compared with a loss of $0.63 per share for
the fourth quarter of 2006. Exclusive of the items listed in Note
1, earnings per share (diluted) from continuing operations
increased to $1.00 in the fourth quarter 2007 from $0.19 in the
same quarter last year. A description of the items management
considers not representative of ongoing operations and a
reconciliation of the GAAP to non-GAAP earnings and earnings per
share can be found in the tables accompanying this release and in
charts on the Company's web site (http://www.o-i.com/). Full Year
Results Improve by more than $300 Million Net sales from continuing
operations for 2007 increased 14% to $7.567 billion from $6.650
billion in 2006. The $917 million increase was driven by: (1)
favorable currency translation, principally of the Euro and
Australian dollar, (2) improved prices and product sales mix across
all regions, and (3) a 2% increase in the tons of glass sold
globally. For the full year 2007, the Company reported earnings
from continuing operations of $299.3 million or $1.78 per share
(diluted), compared with a loss from continuing operations of $3.8
million or $0.17 per share last year. Exclusive of the items listed
in Note 2 that management considers not representative of ongoing
operations, the Company earned $493.7 million or $2.94 per share
(diluted) in 2007, compared with $173.2 million or $0.98 per share
(diluted) in 2006, an increase of 185%. The reported results for
both years exclude the plastics packaging business which was sold
on July 31, 2007. The increased earnings in 2007 were primarily the
result of improved prices and product sales mix, improvements in
glass factory operating efficiencies, favorable foreign currency
translation, and a lower worldwide effective tax rate. "2007 was
clearly a successful year for O-I. Our team achieved this success
through manufacturing efficiencies, operating cost improvements,
pricing discipline and procurement initiatives," said Al Stroucken,
Chairman and Chief Executive Officer. "We also significantly
improved our capital structure. We now have greater flexibility to
build on our global leadership position." 2007 Cash Flow Improves,
Supported by Working Capital and Capital Spending Cash provided by
continuing operating activities was $154.6 million in the fourth
quarter of 2007, compared with $232.4 million in the same quarter
of 2006. Free Cash Flow (defined as cash provided by continuing
operations, plus collections on receivables arising from
securitization, less capital spending for continuing operations)
was $26.8 million in the fourth quarter of 2007, compared with
$126.1 million during the same quarter in 2006. For the year 2007,
the Company increased its generation of Free Cash Flow to $332.6
million, compared with negative Free Cash Flow of $46.7 million in
2006. The $379.3 million year-over-year increase in Free Cash Flow
resulted principally from improved profit margins. Higher cash from
the change in working capital substantially offset the additional
spending to settle asbestos-related claims and lawsuits in the
third and fourth quarters. Management expects that Free Cash Flow
generation will exceed $425 million in 2008. During the fourth
quarter of 2007, working capital was a $53.9 million source of cash
for the Company, compared with a $116.9 million source during the
same period in 2006. For the full year 2007, working capital was a
$36.2 million source of cash for the Company, as compared with a
$129.8 million use of cash last year, including collections on
receivables arising from securitization. For the year 2007, the
Company reported $292.5 million in capital expenditures plus $27.0
million capitalized under financing arrangements and $452.3 million
of depreciation and amortization expense. The Company expects that
the level of capital expenditures for continuing operations in 2008
will increase, but will not exceed 80% to 85% of the depreciation
and amortization expense for the year. Debt Reduced by More than
$1.7 Billion The Company repaid approximately $1.9 billion in debt
during 2007. This was primarily achieved by applying the net
proceeds from the sale of the plastics business along with cash
generated from operations. As of December 31, 2007, the Company had
a total debt balance of $3.714 billion compared with $5.457 billion
at year end 2006. The amount of debt reported on the balance sheet
at the end of 2007 does not reflect the full amount of cash used
for debt repayment due to the unfavorable effect of approximately
$200 million in foreign currency translation on the debt balance.
The Company also had more than $800 million of available capacity
under its secured revolving credit facility at year end 2007.
Effective Tax Rate Decreases The Company's reported tax rate was
29.2% in 2007, and 75.9% in 2006. Excluding the items presented in
Note 2, the Company's worldwide effective tax rate from continuing
operations was 24.4% in 2007. This compares to an effective tax
rate for continuing operations of 40.3% in 2006. The reduction is
principally due to: (1) a change in mix of earnings to
jurisdictions where the Company is subject to lower effective
rates, and (2) the effect of higher earnings and lower interest
costs in the U.S., where the Company has recognized a valuation
allowance on net deferred tax assets. Cash tax payments for the
full year 2007, excluding cash taxes on the sale of the plastics
business, amounted to $152.5 million, compared to $125.5 million
for 2006. The cash tax increase is a result of improved earnings,
the unfavorable effect of foreign currency translation, and the
impact of restructuring tax costs for the continuing business. The
Company expects that the effective tax rate will not change
significantly in 2008 and cash taxes will be in the range of $175
million to $185 million. Asbestos Payments Increase; Accrued
Liability, Deferred Amounts Payable and Pending Cases Decline
Asbestos-related cash payments during the fourth quarter and full
year of 2007 totaled $120.9 million and $347.1 million,
respectively. This compares with $34.9 million and $162.5 million
for the same periods last year. Cash payments increased in part to
fund, on an accelerated basis, settlements of certain claims on
terms favorable to the Company. Cash payments were also used, in
part, to reduce the deferred amounts payable for previously settled
claims to approximately $34 million as of December 31, 2007, from
approximately $82 million as of December 31, 2006. New
asbestos-related lawsuits and claims reported in 2007 were
approximately 9,000 compared with 7,000 during 2006. The Company
believes that without its accelerated settlement of claims, the
number of new asbestos- related lawsuits and claims would have been
down year-over-year. In addition, the number of pending
asbestos-related lawsuits and claims was down 26% to approximately
14,000 as of December 31, 2007, compared with approximately 19,000
pending as of year end 2006. The Company conducted a comprehensive
review of its asbestos-related liabilities and costs in connection
with finalizing and reporting its results for the full year 2007.
As a result of that review, the Company recorded a non-cash charge
of $115.0 million (pretax and after tax) to increase the accrual
for future asbestos-related costs. In 2006, the Company increased
its accrual for future asbestos-related costs by $120.0 million
(pretax and after tax). The balance of the accrual for future
asbestos-related costs as of December 31, 2007, was $455.5 million,
compared with $687.6 million as of December 31, 2006. Company
Optimistic about 2008 The Company expects to continue building on
its 2007 successes. "The operational progress we've made over the
last year will serve as a solid foundation for our business going
forward," continued Stroucken. "I'm confident that we are capable
of much more. While we continue to build a stronger, leaner and
more flexible company, we will begin to focus more on marketing and
innovation to maximize the value of the products and services we
offer our customers. Having a stronger balance sheet will also give
us the financial flexibility we need to tap new markets and expand
in others." Note 1: The table below represents items in the fourth
quarter of 2007 and 2006 that management considers not
representative of ongoing operations. $ Millions, except per share
amounts Three months ended Dec. 31 2007 2006 Earnings EPS Earnings
EPS Earnings from continuing operations $14.6 $0.06 $(90.0) $(0.63)
Items that management considers not representative of ongoing
operations consistent with Segment Operating Profit
Asbestos-related charges 115.0 0.71 120.0 0.78 Charge for
restructuring and asset impairments 29.0 0.18 Note repurchase
premiums & write-off of deferred finance fees 8.8 0.05 CEO
transition and other separation charges 20.7 0.13 Curtailment of
postretirement benefits in The Netherlands (11.2) (0.07) Reversal
of non-U.S. deferred tax valuation allowance partially offset by
tax restructuring charges (5.7) (0.03) Loss from mark to market
effect of Natural gas hedge contracts 1.9 0.01 Earnings from
continuing operations exclusive of above items $167.4 $1.00 $35.7
$0.19 Note 2: The table below represents items for the full year
2007 and 2006 that management considers not representative of
ongoing operations. $ Millions, except per share amounts Twelve
months ended Dec. 31 2007 2006 Earnings EPS Earnings EPS Earnings
from continuing operations $299.3 $1.78 $ (3.8) $(0.17) Items that
management considers not representative of ongoing operations
consistent with Segment Operating Profit Asbestos-related charges
115.0 0.68 120.0 0.78 Charge for restructuring and asset
impairments 84.1 0.51 Gain from recognition of foreign tax credits
(13.5) (0.08) Note repurchase premiums & write-off of deferred
finance fees 8.8 0.05 17.1 0.11 Charge for Godfrey plant closure
27.7 0.18 CEO transition and other separation charges 20.7 0.13
Curtailment of postretirement benefits in The Netherlands (11.2)
(0.07) Loss from mark to market effect of natural gas hedge
contracts 8.4 0.05 Reversal of non-U.S. deferred tax valuation
allowance partially offset by tax restructuring charges (5.7)
(0.03) Earnings from continuing operations exclusive of above items
$493.7 $2.94 $173.2 $0.98 Regulation G The information presented
above regarding earnings from continuing operations exclusive of
items management considers not representative of ongoing operations
does not conform to 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 bonus payments. Management
believes that the excluded items are not reflective of ongoing
operations, so 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. Company Profile
Millions of times a day, O-I glass containers deliver many of the
world's best-known consumer products to people all around the
world. With the leading position in Europe, North America, Asia
Pacific and Latin America, O-I manufactures consumer-preferred, 100
percent recyclable glass containers that enable superior taste,
purity, visual appeal and value benefits for our customers'
products. Established in 1903, the company employs more than 25,000
people with 83 manufacturing facilities in 22 countries. In 2007,
net sales were $7.6 billion. For more information, visit
http://www.o-i.com/. Forward Looking Statements This news release
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. 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, (2) changes in capital availability or cost, including
interest rate fluctuations, (3) the general political, economic and
competitive conditions in markets and countries where the Company
has operations, including disruptions in the supply chain,
competitive pricing pressures, inflation or deflation, and changes
in the tax rates and laws, (4) consumer preferences for alternative
forms of packaging, (5) fluctuation in raw material and labor
costs, (6) availability of raw materials, (7) costs and
availability of energy, (8) transportation costs, (9) the ability
of the Company to raise selling prices, commensurate with energy
and other cost increases, without the loss of customers or sales
volume, (10) consolidation among competitors and customers, (11)
the ability of the Company to integrate operations of acquired
businesses and achieve expected synergies, (12) unanticipated
expenditures with respect to environmental, safety and health laws,
(13) the performance by customers of their obligations under
purchase agreements, and (14) the timing and occurrence of events
which are beyond the control of the Company, including events
related to asbestos-related claims. It is not possible to foresee
or identify all such factors. Any forward- looking statements in
this news release 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 intend to
update any particular forward-looking statements contained in this
news release. Conference Call Scheduled for January 31 O-I CEO Al
Stroucken and CFO Ed White will conduct a conference call to
discuss the Company's latest results on Thursday, January 31, 2008,
at 8:30 a.m., Eastern Time. A live Webcast of the conference call
will be available on the O-I Web site (http://www.o-i.com/). The
conference call also may be accessed by dialing 888-733-1701 (U.S.
and Canada) or 706-634-4943 (international) by 8:20 a.m. Eastern
Time on January 31st. Ask for the O-I conference call. A replay of
the call will be available on the O-I Web site
(http://www.o-i.com/) for 30 days following the call. Additional
Information Additional information regarding fourth quarter sales,
Segment Operating Profit and EPS comparisons to prior year is
available on the O-I Web site, http://www.o-i.com/, in the Investor
Relations section under "Annual Reports and Presentations."
OWENS-ILLINOIS, INC. Condensed Consolidated Results of Operations
(a) (Dollars in millions, except per share amounts) Three months
ended Years ended December 31, December 31, 2007 2006 2007 2006
Revenues: Net sales $1,957.3 $1,699.4 $7,566.7 $6,650.4 Royalties
and net technical assistance 5.0 5.3 19.7 16.5 Equity earnings 11.8
4.1 34.1 23.4 Interest 12.3 5.0 42.3 19.2 Other (b) 7.6 20.3 16.4
39.5 1,994.0 1,734.1 7,679.2 6,749.0 Costs and expenses:
Manufacturing, shipping, and delivery (c) 1,536.4 1,417.3 5,971.4
5,481.1 Research, development, and engineering 19.3 8.7 65.8 48.7
Selling and administrative (d) 132.3 154.8 520.6 530.4 Interest (e)
88.4 81.3 348.6 349.0 Other (f) 163.4 132.5 266.2 174.7 1,939.8
1,794.6 7,172.6 6,583.9 Earnings from continuing operations before
items below 54.2 (60.5) 506.6 165.1 Provision for income taxes (g)
24.3 17.8 147.8 125.3 Minority share owners' interests in earnings
of subsidiaries 15.3 11.7 59.5 43.6 Earnings (loss) from continuing
operations 14.6 (90.0) 299.3 (3.8) Net earnings (loss) of
discontinued operations (12.8) 2.8 (23.7) Gain on sale of
discontinued operations (33.4) 1,038.5 Net earnings (loss) $(18.8)
$(102.8) $1,340.6 $(27.5) Less convertible preferred stock
dividends (5.4) (5.4) (21.5) (21.5) Available to common share
owners $(24.2) $(108.2) $1,319.1 $(49.0) Basic net earnings per
share of common stock: Earnings (loss) from continuing operations
$0.06 $(0.63) $1.80 $(0.17) Net earnings (loss) of discontinued
operations (0.08) 0.02 (0.15) Gain on sale of discontinued
operations (0.21) 6.73 Net earnings (loss) $(0.15) $(0.71) $8.55
$(0.32) Weighted average shares outstanding (000s) 155,613 152,470
154,215 152,071 Diluted net earnings per share of common stock:
Earnings (loss) from continuing operations $0.06 $(0.63) $1.78
$(0.17) Net earnings (loss) of discontinued operations (0.08) 0.02
(0.15) Gain on sale of discontinued operations (0.21) 6.19 Net
earnings (loss) $(0.15) $(0.71) $7.99 $(0.32) Diluted average
shares (000s) (h) (i) 160,956 152,470 167,767 152,071 (a) Amounts
related to the Company's plastics packaging business have been
reclassified to discontinued operations following the June 11, 2007
announcement of an agreement to sell the business. The sale was
completed on July 31, 2007. (b) Amount for the three months and
year ended December 31, 2006 includes a gain of $15.9 million
($11.2 million after tax) for the curtailment of postretirement
benefits in The Netherlands. The effect of this gain is an increase
in earnings per share of $0.07. (c) Amount for three months ended
December 31, 2006 includes a loss of $2.0 million ($1.9 million
after tax) from the mark to market effect of natural gas hedge
contracts. The effect of this loss is a decrease in earnings per
share of $0.01. Amount for the year ended December 31, 2006
includes a loss of $8.7 million ($8.4 million after tax) from the
mark to market effect of natural gas hedge contracts. The effect of
this loss is a decrease in earnings per share of $0.05. (d) Amount
for the three months and year ended December 31, 2006 includes a
charge of $20.8 million ($20.7 million after tax) for CEO
transition and other costs. The effect of this charge is a
reduction in earnings per share of $0.13. (e) Amount for the three
months and year ended December 31, 2007 includes a charge of $9.5
million ($8.8 million after tax) for note repurchase premiums and
the write-off of finance fees related to debt that was repaid prior
to its maturity. The effect of this charge is a decrease in
earnings per share of $0.05. Amount for the year ended December 31,
2006 includes charges of $17.5 million ($17.1 million after tax)
for note repurchase premiums and the write-off of finance fees
related to debt that was repaid prior to its maturity. The effect
of these charges is a reduction in earnings per share of $0.11. (f)
Amount for the three months and year ended December 31, 2007
includes a charge of $115.0 million (pretax and after tax) to
increase the accrual for estimated future asbestos-related costs.
The effect of this charge is a reduction in earnings per share of
$0.71 and $0.68 for the three months and year ended December 31,
2007, respectively. Amount for the three months ended December 31,
2007 includes a charge of $38.4 million ($29.0 million after tax)
for restructuring and asset impairments. The effect of this charge
is a decrease in earnings per share of $0.18. Amount for the year
ended December 31, 2007 includes charges of $100.3 million ($84.1
million after tax) for restructuring and asset impairments. The
effect of these charges is a decrease in earnings per share of
$0.51. Amount for the three months and year ended December 31, 2006
includes a charge of $120.0 million (pretax and after tax) to
increase the accrual for estimated future asbestos-related costs.
The effect of this charge is a reduction in earnings per share of
$0.78. Amount for the year ended December 31, 2006 includes a
charge of $29.7 million ($27.7 million after tax) for the closing
of the Godfrey, Illinois machine parts manufacturing operation. The
effect of this charge is a reduction in earnings per share of
$0.18. (g) Amount for year ended December 31, 2007 includes a
benefit of $13.5 million for the recognition of tax credits related
to restructuring of investments in certain European operations. The
effect of this benefit is an increase in earnings per share of
$0.08. Amount for the three months and year ended December 31, 2006
includes a benefit of $5.7 million from the reversal of a non-U.S.
deferred tax asset valuation allowance partially offset by charges
related to international tax restructuring. The effect of this
benefit is an increase in earnings per share of $0.03. (h) The
number of diluted shares for year ended December 31, 2007 was
increased by 8,589,000 because the assumed conversion of the
convertible preferred shares is dilutive to the related earnings
per share amount for those periods. Accordingly, dividends were not
deducted from earnings in calculating diluted earnings per share
for those periods. Earnings per share amounts are calculated
discretely for each period and quarterly amounts do not necessarily
total the year to date amounts because of dilution and rounding.
(i) Diluted earnings per share of common stock are equal to basic
earnings per share of common stock for 2006 due to the net loss.
OWENS-ILLINOIS, INC. Condensed Consolidated Cash Flows (Dollars in
millions) Three months ended Years ended December 31, December 31,
2007 2006 2007 2006 Cash flows from operating activities: Net
earnings $(18.8) $(102.8) $1,340.6 $(27.5) Net (earnings) loss of
discontinued operations - 12.8 (2.8) 23.7 Gain on sale of
discontinued operations 33.4 (1,038.5) Non-cash charges:
Depreciation 102.5 106.0 423.4 427.7 Amortization of intangibles
and other deferred items 10.0 5.5 28.9 22.3 Amortization of finance
fees 2.0 1.3 8.6 5.7 Future asbestos related costs 115.0 120.0
115.0 120.0 Restructuring and asset impairments 38.4 100.3 CEO and
other transition charges 20.8 20.8 Curtailment of postretirement
benefits in The Netherlands (15.9) (15.9) Reverse non-U.S. deferred
tax valuation allowance net of tax restructuring charges (5.7)
(5.7) Mark to market effect of natural gas hedge contracts 2.0 8.7
Charge for closing the Godfrey, Illinois plant 29.7 Other (11.7)
4.5 53.3 12.5 Asbestos-related payments (120.9) (34.9) (347.1)
(162.5) Change in non-current operating assets (20.7) 9.1 (7.4)
(33.3) Change in non-current liabilities (28.5) (7.2) (85.4) (58.1)
Change in components of working capital 53.9 116.9 36.2 (257.1)
Cash provided by continuing operating activities 154.6 232.4 625.1
111.0 Cash provided by discontinued operating activities 3.3 11.3
39.3 Cash flows from investing activities: Additions to property,
plant, and equipment - continuing (127.8) (106.3) (292.5) (285.0)
Additions to property, plant, and equipment - discontinued (13.8)
(23.3) (35.3) Collections on receivables arising from consolidation
of receivables securitization program (a) 127.3 Acquisitions, net
of cash acquired (9.8) Net cash proceeds from divestitures and
asset sales (28.0) 0.7 1,770.0 15.1 Cash provided by (utilized in)
investing activities (155.8) (119.4) 1,444.4 (177.9) Cash flows
from financing activities: Additions to long-term debt 2.8 25.0
406.4 1,206.5 Repayments of long-term debt (1,219.4) (268.4)
(2,393.2) (1,341.8) Increase (decrease) in short- term loans 7.2
106.0 (21.5) 158.9 Net receipts (payments) for hedging activity 5.7
(2.5) 5.7 (6.8) Payment of finance fees (6.3) (12.3) Convertible
preferred stock dividends (5.4) (5.4) (21.5) (21.5) Issuance of
common stock and other 19.0 3.3 62.8 8.0 Cash utilized in financing
activities (1,190.1) (142.0) (1,967.6) (9.0) Effect of exchange
rate fluctuations on cash 34.1 6.1 51.8 12.7 Increase (decrease) in
cash (1,157.2) (19.6) 165.0 (23.9) Cash at beginning of period
1,544.9 242.3 222.7 246.6 Cash at end of period $387.7 $222.7
$387.7 $222.7 (a) During the fourth quarter of 2005, the Company
expanded the capacity of its European accounts receivable
securitization program. The terms of this expansion resulted in
changing the accounting for the program from off-balance sheet to
on-balance sheet accounting for the program by consolidating both
the trade accounts receivable in the program and the secured
indebtedness of the same amount. Cash inflows related to receipts
from customers in payment of the accounts receivable consolidated
at December 13, 2005 have been classified as investing cash inflows
in the accompanying Consolidated Statement of Cash Flows.
OWENS-ILLINOIS, INC. Condensed Consolidated Balance Sheets (Dollars
in millions) Dec. 31, Dec. 31, 2007 2006 Assets Current assets:
Cash, including time deposits $387.7 $222.7 Short-term investments,
at cost which approximates market 59.8 32.7 Receivables, less
allowances for losses and discounts 1,185.6 1,041.1 Inventories
1,020.8 992.1 Prepaid expenses 40.7 39.3 Assets of discontinued
operations 104.8 Total current assets 2,694.6 2,432.7 Investments
and other assets: Equity investments 81.0 96.3 Repair parts
inventories 155.8 135.3 Prepaid pension 566.4 488.5 Deposits,
receivables, and other assets 448.7 466.5 Goodwill 2,428.1 2,255.2
Assets of discontinued operations 571.7 Total other assets 3,680.0
4,013.5 Property, plant, and equipment, at cost 6,423.1 5,842.6
Less accumulated depreciation 3,473.1 2,968.1 Net property, plant,
and equipment 2,950.0 2,874.5 Total assets $9,324.6 $9,320.7
Liabilities and Share Owners' Equity Current liabilities:
Short-term loans and long-term debt due within one year $700.9
$737.2 Current portion of asbestos- related liabilities 210.0 149.0
Accounts payable 957.5 890.2 Other liabilities 661.1 518.4
Liabilities of discontinued operations 70.9 Total current
liabilities 2,529.5 2,365.7 Liabilities of discontinued operations
1.6 Long-term debt 3,013.5 4,719.4 Deferred taxes 109.4 111.1
Pension benefits 313.7 335.0 Nonpension postretirement benefits
287.0 293.1 Other liabilities 386.9 392.9 Asbestos-related
liabilities 245.5 538.6 Minority share owners' interests 251.7
206.6 Share owners' equity: Convertible preferred stock 452.5 452.5
Common stock 1.7 1.7 Capital in excess of par value 2,420.0 2,329.5
Treasury stock, at cost (224.6) (228.4) Retained deficit (285.3)
(1,604.4) Accumulated other comprehensive loss (176.9) (594.2)
Total share owners' equity 2,187.4 356.7 Total liabilities and
share owners' equity $9,324.6 $9,320.7 OWENS-ILLINOIS, INC.
Consolidated Supplemental Financial Data (Dollars in millions)
Selected Segment Information (a) Three Months Ended December 31,
Net Sales Segment Operating Profit (b) 2007 2006 2007 2006 North
America $537.8 $490.8 $33.5 $22.7 Europe 843.5 721.3 129.2 39.7
Asia Pacific 271.9 227.1 54.5 36.1 South America 283.4 245.0 82.4
58.1 Reportable segment totals 1,936.6 1,684.2 299.6 156.6 Retained
corporate costs and other 20.7 15.2 (15.9) (13.9) Consolidated
totals (c) $1,957.3 $1,699.4 283.7 142.7 Restructuring and asset
impairment (38.4) Charge for asbestos related costs (115.0) (120.0)
CEO and other transition charges (20.8) Curtailment of
postretirement benefits in The Netherlands 15.9 Mark to market
effect of natural gas hedge contracts (2.0) Interest income 12.3
5.0 Interest expense (88.4) (81.3) Provision for income taxes
(24.3) (17.8) Minority share owners' interests in earnings of
subsidiaries (15.3) (11.7) Earnings (loss) from continuing
operations $14.6 $(90.0) Selected Segment Information (a) Year
Ended December 31, Net Sales Segment Operating Profit (b) 2007 2006
2007 2006 North America $2,271.3 $2,110.4 $265.1 $187.3 Europe
3,298.7 2,846.6 433.0 249.6 Asia Pacific 934.3 804.9 154.0 102.9
South America 970.7 796.5 254.9 195.0 Reportable segment totals
7,475.0 6,558.4 1,107.0 734.8 Retained corporate costs and other
91.7 92.0 (78.8) (76.6) Consolidated totals (c) $7,566.7 $6,650.4
1,028.2 658.2 Restructuring and asset impairments (100.3) Charge
for asbestos related costs (115.0) (120.0) CEO and other transition
charges (20.8) Curtailment of postretirement benefits in The
Netherlands 15.9 Mark to market effect of natural gas hedge
contracts (8.7) Charge for closing the Godfrey, Illinois plant
(29.7) Interest income 42.3 19.2 Interest expense (348.6) (349.0)
Provision for income taxes (147.8) (125.3) Minority share owners'
interests in earnings of subsidiaries (59.5) (43.6) Earnings (loss)
from continuing operations $299.3 $(3.8) The following notes relate
to Segment Operating Profit: (a) Amounts related to the Company's
plastics packaging business have been reclassified to discontinued
operations following the June 11, 2007 announcement of an agreement
to sell the business. The sale was completed on July 31, 2007. (b)
Operating Profit consists of consolidated earnings from continuing
operations before interest income, interest expense, provision for
income taxes and minority share owners' interests in earnings of
subsidiaries. Segment Operating Profit excludes amounts related to
certain items that management considers not representative of
ongoing operations. The Company presents information on "Operating
Profit" because management believes that it provides investors with
a measure of operating performance separate from the level of
indebtedness or other related costs of capital. The most directly
comparable GAAP financial measure to Operating Profit is net
earnings. The Company presents Segment Operating Profit because
management uses the measure, in combination with selected cash flow
information, to evaluate performance and to allocate resources. A
reconciliation from Segment Operating Profit to Consolidated
Operating Profit to net earnings is included in the tables above.
(c) Amount for the year ended December 31, 2007 excludes charges of
$100.3 million for restructuring and asset impairments. Amount for
the three months ended December 31, 2007 excludes a charge of $38.4
million for restructuring and asset impairment. Amount excludes a
loss of $2.0 million and $8.7 million for the three months and year
ended December 31, 2006, respectively, from the mark to market
effect of natural gas hedge contracts. Amount for the year ended
December 31, 2006 excludes a charge of $29.7 million for the
closing of the Godfrey, Illinois machine parts manufacturing
operation. Amount for the three months and year ended December 31,
2006 excludes a gain of $15.9 million for the curtailment of
postretirement benefits in The Netherlands. Amount for the three
months and year ended December 31, 2006 excludes a charge of $20.8
million for the CEO transition and other costs. Amount for the
three months and year ended December 31, 2007 excludes a charge of
$115.0 million to increase the reserve for estimated future
asbestos-related costs. Amount for the three months and year ended
December 31, 2006 excludes a charge of $120.0 million to increase
the reserve for estimated future asbestos-related costs.
http://www.newscom.com/cgi-bin/prnh/20050412/CLTU028LOGO
http://photoarchive.ap.org/ DATASOURCE: Owens-Illinois, Inc.
CONTACT: Sasha Sekpeh, Investor Relations, +1-567-336-2355, or
Lauren Dubilzig, Corp. Communications, +1-567-336-1312, both of O-I
Web site: http://www.o-i.com/
Copyright
OI Glass (NYSE:OI)
Historical Stock Chart
From Jun 2024 to Jul 2024
OI Glass (NYSE:OI)
Historical Stock Chart
From Jul 2023 to Jul 2024