) reported a 3% improvement in its first-quarter 2014 adjusted
earnings per share to 62 cents driven by higher sales volumes.
Results beat the Zacks Consensus Estimate of 60 cents. Including
one-time items, the company's earnings per share were 62 cents,
up 29% from the 48 cents earned in the year-ago quarter.
Owens-Illinois, Inc - Quarterly Earnings Per
Share | FindTheBest
Net sales, flat compared with the year-ago quarter, were at
$1.64 billion, but surpassed the Zacks Consensus Estimate of
$1.61 billion. The price was up modestly on a global basis, as a
slight decline in Europe was offset by broad-based price gains in
Volume, in terms of tons shipped, was up 2% year over year,
marking the third quarter of volume increase after volume
declines witnessed for straight seven quarters. Gains in Europe
and North America and flat shipments in South America were
partially offset by declines in Asia Pacific.
Cost of sales remained flat at $1.32 billion in the quarter.
Gross profit edged up 1% year over year to $321 million from $319
million in the prior-year quarter. Selling and administrative
expenses increased 3% to $133 million.
Segment operating profit decreased 4% year over year to $218
million. A 50% increase in operating profit in Europe, driven by
volume and structural cost improvements from the asset
optimization program was offset by a decline in operating profit
in North America due to logistics headwinds from the harsh winter
in the past quarter.
Profitability in South America declined, owing to a higher
level of planned furnace rebuild activity and devaluation of the
Brazilian real. Operating profit in Asia Pacific also declined
affected by lower volume and higher costs
BERRY PLASTICS (BERY): Free Stock Analysis
CROWN HLDGS INC (CCK): Free Stock Analysis
GRAPHIC PKG HLD (GPK): Free Stock Analysis
OWENS-ILLINOIS (OI): Free Stock Analysis
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Cash and cash equivalents were $201 million as of Mar 31, 2014,
compared with $383 million as of Dec 31, 2013. Long-term debt was
$3.37 billion as of Mar 31, 2014, compared with $3.24 billion as
of Dec 31, 2013. Cash utilized in continuing operating activities
was $202 million in the quarter, compared with $134 million in
the prior-year quarter.
Owens-Illinois reiterated its earnings per share guidance
range of $2.80 to $3.20 for 2014. Free cash flow is projected to
be approximately $350 million.
Owens-Illinois expects conditions in Europe to continue to slowly
stabilize. The lingering impact of logistics challenges will
likely affect profitability In North America in the second
quarter. In South America, the company expects demand to be
modestly higher than the lackluster demand witnessed in the
prior-year period. Plant closures in China and the absence of
recovery in the mature markets of Asia Pacific are expected to
reduce sales in the region.
Owens-Illinois currently retains a Zacks Rank #3 (Hold).
Some better-ranked stocks in the retail sector include
Crown Holdings Inc.
Berry Plastics Group, Inc.
Graphic Packaging Holding Co.
). While Crown Holdings carries a Zacks Rank #1 (Strong Buy),
Berry Plastics Group and Graphic Packaging hold a Zacks Rank #2