OI European Group B.V., an indirectly owned ancillary of
Owens-Illinois Group, Inc.
) announced its intention to offer $388 million worth of Senior
Notes scheduled to mature in 2021 depending on market conditions.
The proceeds from the issuance of Senior Notes will be deployed
to repurchase its outstanding $388 million of 6.875% Senior Notes
Owens-Illinois exited 2012 with a long-term debt of $3,454
million, down 4.7% year over year. Owens-Illinois'
debt-to-capital ratio stood at 43.8% as of Dec 31, 2012, a
decrease of 100 basis points from Dec 31, 2011. This is in
line with the company's commitment to debt reduction and
strengthening its liquidity position. Cash and cash equivalents
were $431 million as of Dec 31, 2012, which increased 7.75% year
Owens-Illinois remained disciplined in its capital allocation, as
evidenced by its cash debt repayments and the repurchase
activities. Net interest expense was also lower than the prior
year, primarily due to refinancing of higher cost debt and
non-recurrence of note repurchase premiums.
Owens-Illinois reported fourth-quarter 2012 adjusted earnings per
share of 40 cents, down 17% from the year-ago adjusted earnings
of 48 cents per share, but up 8% from the Zacks Consensus
Estimate of 37 cents. Weak economic conditions in Europe mainly
hurt the quarterly results.
Owens expects an overall modest volume growth in 2013 along with
higher prices that keep pace with higher material costs. Its
global cost reduction initiatives and European asset optimization
program are expected to benefit free cash flow and earnings.
Emerging regions and stable market conditions in North America
will help in the growth of Owens-Illinois. However, macroeconomic
uncertainty in Europe will remain a deterring factor.
Perrysburg, Ohio based Owens-Illinois Inc. is the largest
manufacturer of glass containers and has an esteemed clientele in
the liquor and the non-alcoholic beverage categories. Owens'
peers in the same industry are
Apogee Enterprises, Inc.
Silgan Holdings Inc.
Crown Holdings Inc.
Owens currently retains a short-term Zacks Rank #3 (Hold).
APOGEE ENTRPRS (APOG): Free Stock Analysis
CROWN HLDGS INC (CCK): Free Stock Analysis
OWENS-ILLINOIS (OI): Free Stock Analysis
SILGAN HOLDINGS (SLGN): Free Stock Analysis
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