) second-quarter 2013 adjusted earnings per share (EPS) of 81
cents were flat with the year-ago quarter, but beat the Zacks
Consensus Estimate of 79 cents by 3%.
Net sales edged up 1% to $1.781 billion in the quarter, falling
short of the Zacks Consensus Estimate of $1.811 billion. Volume
slipped 1% mainly due to lower beer volumes, which in turn were
affected by unfavorable weather conditions in Europe and North
America, and macroeconomic pressures in South America. However,
increased wine volumes and double-digit growth in Southeast Asia
were the positives.
Manufacturing, shipping and delivery expenses increased 2% year
over year to $1.41 billion in the quarter. Selling and
administrative expenses decreased 7% to $129 million.
Segment operating profit remained flat year over year at
Owens-Illinois' ongoing actions to optimize its footprint
helped improve profits in Europe and Asia. South America's
results were negatively impacted by a higher level of planned
Cash and cash equivalents were $249 million as of Jun 30, 2013
compared with $431 million as of Dec 31, 2012 and $336 million as
of Jun 30, 2012. Long-term debt was $3.34 billion as of Jun 30,
2013 compared with $3.45 billion as Dec 31, 2012 and $3.57
billion as of Jun 30, 2012.
Cash flow from continuing operating activities was $156
million in the quarter compared with $100 million in the
prior-year quarter. During the quarter, Owens-Illinois
repurchased $10 million of its outstanding shares.
Owens-Illinois projects adjusted earnings in the range of $2.65
to $2.85 per share and free cash flow of at least $300 million in
Owens-Illinois will benefit from the restructuring actions
undertaken in North American and Asia-Pacific regions, global
structural cost reductions as well as its growth strategy in
South America. However, since about 40% of its business is in
Europe, the soft economic condition in the region may continue to
In response to slowing sales, Owens-Illinois curtailed production
in several locations in Europe. Owens-Illinois has embarked on a
multi-year asset optimization program in Europe, which includes
elimination of underperforming assets, reduction of idle
capacity, outlining investments in low-cost additional capacity
and enhancing quality, speed and flexibility. This is expected to
lead to improvements in profits in Europe in the second half of
Owens-Illinois currently retains a Zacks Rank #4 (Sell).
An Owens-Illinois peer,
Crown Holdings, Inc.
), reported second-quarter 2013 adjusted earnings of 96 cents per
share, up 14% from 84 cents earned in the year-ago quarter. The
results beat the Zacks Consensus Estimate of 93 cents.
Silgan Holdings Inc.
) reported earnings per share of 63 cents, which improved 15%
year over year but were short of the Zacks Consensus Estimate of
) reported earnings per share of 85 cents versus 89 cents earned
in the year-ago quarter, beating the Zacks Consensus Estimate by
BALL CORP (BLL): Free Stock Analysis Report
CROWN HLDGS INC (CCK): Free Stock Analysis
OWENS-ILLINOIS (OI): Free Stock Analysis
SILGAN HOLDINGS (SLGN): Free Stock Analysis
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