![](https://hugin.info/150659/I/1781239/45122.jpg)
FOR
IMMEDIATE RELEASE
O-I REPORTS
FIRST QUARTER 2014 RESULTS
Earnings Increase Bolstered by Sales Volume
Growth
PERRYSBURG, Ohio (Apr. 29,
2014) - Owens-Illinois, Inc. (NYSE: OI) today reported
financial results for the first quarter ending March 31, 2014.
Highlights
-
First quarter 2014
earnings from continuing operations attributable to the
Company were $0.62 per share (diluted), compared with $0.48 per
share in the same period of 2013. Excluding certain items
management considers not representative of ongoing operations,
adjusted earnings[1] were $0.62
per share compared with $0.60 per share in the prior year.
-
Global volumes were up 2
percent for the third consecutive quarter. Broad-based
gains in Europe and North America, and flat shipments in South
America were partially offset by declines in Asia Pacific.
-
Segment operating profit
margin expanded more than 300 basis points in Europe,
driven by volume and structural cost improvements from the asset
optimization program. Operating profit declined in North America
primarily due to logistics headwinds from adverse weather.
Profitability in both South America and Asia Pacific suffered from
double digit declines in key currencies and lower production
volumes.
-
Interest expense
declined in the quarter as the Company benefited from
ongoing deleveraging efforts, which continue to enhance financial
flexibility.
Commenting on the Company's first quarter results,
Chairman and Chief Executive Officer Al Stroucken said, "In Europe,
we were especially pleased to see a positive volume impact coupled
with the clear benefits from our restructuring efforts.
Record-setting snow and cold in North America dampened
profitability in the quarter, despite modest volume growth. Demand
in South America exceeded our previous guidance, where strong
volume gains in Brazil offset declines in the Andean countries.
Financial performance in Asia Pacific suffered from expected volume
declines and delayed recovery of cost inflation in mature markets.
Overall, higher year-on-year earnings demonstrate our ability to
deliver strong financial results in the face of external
headwinds."
Operational
highlights
Net sales in the first quarter of 2014 were $1.6 billion, on par
with the prior year first quarter. Price was up modestly on a
global basis, as a slight decline in Europe was offset by
broad-based price gains in the Americas. Currency was an overall
headwind as a weaker Brazilian real and Australian dollar more than
offset a stronger Euro.
Sales volume, in terms of tonnes shipped,
increased 2 percent year-over-year. Europe volume increased 6
percent, driven by strong beer performance, as well as wine.
Adverse weather conditions in North America did not materially
impede sales volumes, which grew 2 percent. This was driven by beer
and non-alcoholic beverages, such as juices and iced coffees. In
South America, Brazil reported higher sales volumes, which were
offset by weakness in the Andean countries. Within Asia Pacific,
the Company's smaller footprint in China and ongoing weak demand in
mature markets caused a nearly 10 percent decline in volumes in the
region.
Segment operating profit was $218 million, down $8
million compared with the prior year first quarter. Europe's
operating profit expanded nearly 50 percent, driven by volume gains
across most categories. As expected, the region continues to
benefit from asset optimization. In North America sales and
production volumes were higher. However, those gains were more than
offset by substantially higher supply chain costs due to extreme
weather conditions.
Lower profitability in South America was primarily
due to a higher level of planned furnace rebuild activity and a
double digit devaluation of the Brazilian real. Asia Pacific profit
was dampened by lower volume and higher costs, particularly energy.
The region will begin recovering this inflation in the second half
of 2014.
Financial
highlights
Net interest expense[2] was $3
million lower than the prior year, primarily due to lower interest
rates and to the Company's ongoing efforts to reduce debt.
Outlook
Commenting on the Company's outlook for the second quarter,
Stroucken said, "Conditions in Europe continue to slowly stabilize.
In North America, the lingering impact of logistics challenges will
likely weigh on profitability in the second quarter. In South
America, we anticipate modest recovery over the lackluster demand
in the prior year period. We expect sales in China to continue to
decline due to our plant closures there, and do not yet see
recovery in the mature markets of Asia Pacific. We will stay the
course to deliver our long-term financial commitments by continuing
to focus on taking out costs while maintaining disciplined capital
allocation."
The Company's expected adjusted EPS range of $2.80
to $3.20 per share in 2014 remains unchanged, as does its free cash
flow projection of approximately $350 million for the year.
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 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, 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 April 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, April 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 April 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 second quarter 2014 earnings conference call
is currently scheduled for Wednesday, July 30, 2014, at 8:00 a.m.,
Eastern Time.
[1] 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.
[2] Excluding charges of $11 million during the
first quarter of 2013 for note repurchase premiums and the
write-off of finance fees related to debt that was repaid prior to
its maturity.
1Q14 Earnings Presentation
1Q14 Earnings Release
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Owens-Illinois, Inc. via Globenewswire
HUG#1781239
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