Owens-Illinois EPS Tops, Revs Miss - Analyst Blog
April 26 2012 - 7:15AM
Zacks
Owens-Illinois’s(OI) first-quarter 2012 adjusted
earnings were 73 cents per share, which exceeded the Zacks
Consensus Estimate of 66 cents as well as the year-ago adjusted
earnings of 53 cents per share.
On a reported basis, the company
posted earnings of 73 cents per share compared with the year-ago
earnings of 50 cents.
Net sales increased 1.2% to $1.739
billion in the quarter, missing the Zacks Consensus Estimate of
$1.751 billion. The year-over-year growth was attributable to an
increase in pricing, offsetting the negative impact of currency
translation.
Operational
Update
Manufacturing, shipping and
delivery expense declined 1.1% year over year to $1.361 billion in
the quarter. Selling and administrative expenses also fell 1.4% to
$140 million. Consequently, operating profit improved 25% year over
year to $260 million.
Financial
Update
Cash and cash equivalents were $299
million as of March 31, 2012, versus $430 million as of March 31,
2011. Long-term debt amounted to $3.724 billion as of March 31,
2012, compared with $3.991 billion as of March 31, 2011. Cash used
in operating activities was $95 million during the quarter compared
with $85 million in the year ago quarter.
Guidance
The company is hopeful that the
pricing strategy and operational efficiencies will benefit the
second-quarter 2012 results year over year. These strategies would
also benefit the results of North American operation.
However, the company is cautious
about the demand trends, particularly in Europe. So, it thinks
results in the second quarter will be at par with the
second-quarter 2011 results.
Owens-Illinois competes with
companies like Silgan Holdings Inc. (SLGN). Silgan
is scheduled to report its first quarter earnings on April 26. The
company expects adjusted earnings in the band of 42 cents to 47
cents per share, while the Zacks Consensus Estimate is pegged at 46
cents.
Currently, we maintain a long-term
Neutral recommendation on Owens-Illinois. The stock retains a
short-term Zacks #2 Rank (“Buy”).
OWENS-ILLINOIS (OI): Free Stock Analysis Report
SILGAN HOLDINGS (SLGN): Free Stock Analysis Report
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