Owens-Illinois Provides 1Q Preview - Analyst Blog
April 11 2012 - 8:30AM
Zacks
Owens-Illinois,
Inc. (OI) provided a sneak preview of the
first-quarter 2012 results ahead of its conference call, scheduled
on April 26, 2012. The company expects earnings per share to be
above 67 cents, a 35% climb over and above the prior-year quarter’s
earnings of 50 cents per share. The upsurge is attributed to higher
levels of production, pricing actions, lower costs and cost cuts.
The forecast is well ahead of the Zacks Consensus Estimate of 50
cents for the quarter.
The company indicated
higher-than-expected production in the first quarter. Finished
goods inventory levels had been upped during the quarter to meet
the upcoming seasonal sales demand, particularly in North America
and Europe, and to avoid the supply chain inefficiencies
experienced last year.
Besides, pricing actions to offset
unrecovered prior-year and current inflation have also helped
results. Lower-than-expected costs in the first quarter due to
successful SAP deployment in North America along with benefits from
previous cost reduction activities in the second half of 2011, also
perked up results.
The company, during its fourth
quarter earnings call, had expressed its skepticism regarding
volume performance in 2012 given the stalemate in Europe.
Owens-Illinois stated that with no improvement in the scenario, the
visibility still remains cloudy. Owens-Illinois asserted that it
will actively manage its production levels for significant changes
in sales demand patterns, and such actions could considerably
influence future financial results.
The company competes
with Silgan Holdings Inc. (SLGN). Silgan
is expected to report its first quarter earnings on April 26, 2012.
The company expects first quarter earnings to be around 41
cents.
Headquartered in Perrysburg, Ohio,
Owens-Illinois, through its subsidiaries, manufactures and sells
glass containers primarily in Europe, North America, South America,
and the Asia-Pacific. Owens-Illinois presently retains a Zacks #3
Rank, which translates into a short-term Hold rating.
OWENS-ILLINOIS (OI): Free Stock Analysis Report
SILGAN HOLDINGS (SLGN): Free Stock Analysis Report
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