) second-quarter 2012 adjusted earnings were 81 cents per share,
beating the Zacks Consensus Estimate of 76 cents as well as the
year-ago adjusted earnings of 59 cents per share.
On a reported basis, the company posted earnings of 81 cents per
share compared with the year-ago earnings of 42 cents.
Net sales decreased 11% to $1.766 billion in the quarter, missing
the Zacks Consensus Estimate of $1.920 billion. The decline in net
sales was attributable to negative impacts of foreign currency as
well as lower volumes, which offset the positive impacts of higher
Manufacturing, shipping and delivery expense increased 15.4% year
over year to $1.390 billion in the quarter. Selling and
administrative expenses fell 5% to $139 million. Consequently,
operating profit improved 18.8% year over year to $266 million.
The improvement was attributable to robust supply chain and
manufacturing performance, cost reduction efforts and higher prices
offsetting the rising input costs and lower global shipments.
OWENS-ILLINOIS (OI): Free Stock Analysis Report
SILGAN HOLDINGS (SLGN): Free Stock Analysis
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Cash and cash equivalents were $336 million as of June 30, 2012,
versus $260 million as of June 30, 2011. Long-term debt amounted to
$3.567 billion as of June 30, 2012, compared with $3.969 billion as
of June 30, 2011. Cash used in operating activities was $99 million
during the quarter compared with $179 million in the year ago
The company is hopeful that in the third quarter Asia pacific's
year-over-year operating performance will improve in addition to
strong profitability in the Americas. However, the company remains
cautious about the weak global economic conditions, especially in
Europe along with unfavorable currency exchange that are expected
to affect negatively Owens-Illinois' performance.
Owens-Illinois has reduced its capital spending plan for the
remaining of the year. It expects free cash flow of $250 million in
Owens-Illinois competes with companies like
Silgan Holdings Inc.
). In second-quarter 2012, Silgan's earnings improved 4% year over
year to 55 cents per share, but missed the Zacks Consensus Estimate
of 58 cents.
Owens-Illinois retains a short-term Zacks #4 Rank (Sell).
Currently, we maintain a long-term Neutral recommendation on the