OwensIllinois Inc. (OI, Financial) filed Quarterly Report for the period ended 2010-06-30.
Owensillinois Inc. has a market cap of $4.92 billion; its shares were traded at around $29.84 with a P/E ratio of 10.3 and P/S ratio of 0.7. Owensillinois Inc. had an annual average earning growth of 0.6% over the past 5 years.OI is in the portfolios of David Dreman of Dreman Value Management, RS Investment Management, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors.
Net earnings attributable to the Company for the second quarter of 2010 was $141.1 million, or $0.85 per share (diluted), compared with $149.3 million, or $0.88 per share (diluted), for the second quarter of 2009. Earnings in both periods included items that management considered not representative of ongoing operations. These items decreased net earnings attributable to the Company in 2010 by $7.9 million, or $0.05 per share, and decreased net earnings attributable to the Company in 2009 by $10.4 million, or $0.06 per share.
Segment Operating Profit for reportable segments was $1.5 million higher than the prior year, principally resulting from improved price and mix which benefited 2010 by approximately $33 million. The Company also recognized savings of approximately $46 million from permanent curtailment of plant capacity and realignment of selected operations. Partially offsetting these benefits were approximately $33 million of higher unabsorbed fixed costs due to temporary production curtailments and $18 million of inflationary cost increases. Segment Operating Profit also decreased approximately $19 million related to changes in foreign currency exchange rates. The favorable effects of foreign currency exchange rates from the Companys international operations excluding Venezuela increased Segment Operating Profit approximately $21 million, but were more than offset by an approximate $40 million unfavorable impact due to the translation of the Companys Venezuelan operations at the parallel market and SITME rates in 2010.
Interest expense for the first six months of 2010 was $115.6 million compared with $106.0 million for the first six months of 2009. The 2009 amount includes $5.2 million of additional interest charges for note repurchase premiums and the related write-off of unamortized finance fees, net of a gain from the termination of the interest rate swap agreement following the May 2009 tender for the 7.50% Senior Debentures due May 2010. Excluding these amounts, interest expense for the first six months of 2010 increased $14.8 million from the first six months of 2009. The increase is principally due to higher debt balances as a result of the Companys debt issuances in May 2009 and May 2010.
Net earnings attributable to the Company for 2010 were $226.4 million, or $1.34 per share (diluted), compared with $194.4 million, or $1.15 per share (diluted), for 2009. Earnings in both periods included items that management considered not representative of ongoing operations. These items decreased net earnings in 2010 by $7.9 million, or $0.05 per share, and decreased net earnings in 2009 by $58.1 million, or $0.34 per share.
Segment Operating Profit of reportable segments in the second quarter of 2010 was $287.1 million compared to $291.9 million for the second quarter of 2009, a decrease of $4.8 million, or 1.6%. Improved price and mix contributed approximately $23 million in the second quarter of 2010 as a result of the Companys price over volume strategy aimed at improving margins. Sales volume had a minimal impact on Segment Operating Profit in the second quarter of 2010 as the 1.8% decrease in glass container shipments during the quarter was offset by favorable regional sales mix, primarily due to growth of higher margin business in South America. Manufacturing and delivery costs increased approximately $18 million due to inflationary cost increases. An increase in other manufacturing costs was more than offset by approximately $18 million of savings related to the permanent curtailment of plant capacity and improved capacity utilization. Segment Operating Profit also decreased approximately $17 million due to changes in foreign currency exchange rates, primarily due to the unfavorable impact of translating the Companys Venezuelan operations at the parallel market and SITME rates in the second quarter of 2010 (see Note 13 to the Condensed Consolidated Financial Statements for more information). The economic and political environment in Venezuela remains uncertain and the Company cannot predict what impact future events may have on the reported results of its operations in that country.
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Owensillinois Inc. has a market cap of $4.92 billion; its shares were traded at around $29.84 with a P/E ratio of 10.3 and P/S ratio of 0.7. Owensillinois Inc. had an annual average earning growth of 0.6% over the past 5 years.OI is in the portfolios of David Dreman of Dreman Value Management, RS Investment Management, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Segment Operating Profit for reportable segments was $4.8 million lower than the prior year, principally resulting from the unfavorable effect of foreign currency exchange rates and higher manufacturing and delivery costs. The stronger U.S. dollar in the second quarter of 2010 compared to the second quarter of 2009, primarily in relation to the Euro and Venezuelan bolivar, decreased Segment Operating Profit by approximately $17 million. Manufacturing and delivery costs increased approximately $18 million due to inflationary costs increases. An increase in other manufacturing costs was more than offset by approximately $18 million of savings related to the permanent curtailment of plant capacity and improved capacity utilization. Improved price and product mix contributed approximately $23 million to Segment Operating Profit in the second quarter of 2010.Net earnings attributable to the Company for the second quarter of 2010 was $141.1 million, or $0.85 per share (diluted), compared with $149.3 million, or $0.88 per share (diluted), for the second quarter of 2009. Earnings in both periods included items that management considered not representative of ongoing operations. These items decreased net earnings attributable to the Company in 2010 by $7.9 million, or $0.05 per share, and decreased net earnings attributable to the Company in 2009 by $10.4 million, or $0.06 per share.
Segment Operating Profit for reportable segments was $1.5 million higher than the prior year, principally resulting from improved price and mix which benefited 2010 by approximately $33 million. The Company also recognized savings of approximately $46 million from permanent curtailment of plant capacity and realignment of selected operations. Partially offsetting these benefits were approximately $33 million of higher unabsorbed fixed costs due to temporary production curtailments and $18 million of inflationary cost increases. Segment Operating Profit also decreased approximately $19 million related to changes in foreign currency exchange rates. The favorable effects of foreign currency exchange rates from the Companys international operations excluding Venezuela increased Segment Operating Profit approximately $21 million, but were more than offset by an approximate $40 million unfavorable impact due to the translation of the Companys Venezuelan operations at the parallel market and SITME rates in 2010.
Interest expense for the first six months of 2010 was $115.6 million compared with $106.0 million for the first six months of 2009. The 2009 amount includes $5.2 million of additional interest charges for note repurchase premiums and the related write-off of unamortized finance fees, net of a gain from the termination of the interest rate swap agreement following the May 2009 tender for the 7.50% Senior Debentures due May 2010. Excluding these amounts, interest expense for the first six months of 2010 increased $14.8 million from the first six months of 2009. The increase is principally due to higher debt balances as a result of the Companys debt issuances in May 2009 and May 2010.
Net earnings attributable to the Company for 2010 were $226.4 million, or $1.34 per share (diluted), compared with $194.4 million, or $1.15 per share (diluted), for 2009. Earnings in both periods included items that management considered not representative of ongoing operations. These items decreased net earnings in 2010 by $7.9 million, or $0.05 per share, and decreased net earnings in 2009 by $58.1 million, or $0.34 per share.
Segment Operating Profit of reportable segments in the second quarter of 2010 was $287.1 million compared to $291.9 million for the second quarter of 2009, a decrease of $4.8 million, or 1.6%. Improved price and mix contributed approximately $23 million in the second quarter of 2010 as a result of the Companys price over volume strategy aimed at improving margins. Sales volume had a minimal impact on Segment Operating Profit in the second quarter of 2010 as the 1.8% decrease in glass container shipments during the quarter was offset by favorable regional sales mix, primarily due to growth of higher margin business in South America. Manufacturing and delivery costs increased approximately $18 million due to inflationary cost increases. An increase in other manufacturing costs was more than offset by approximately $18 million of savings related to the permanent curtailment of plant capacity and improved capacity utilization. Segment Operating Profit also decreased approximately $17 million due to changes in foreign currency exchange rates, primarily due to the unfavorable impact of translating the Companys Venezuelan operations at the parallel market and SITME rates in the second quarter of 2010 (see Note 13 to the Condensed Consolidated Financial Statements for more information). The economic and political environment in Venezuela remains uncertain and the Company cannot predict what impact future events may have on the reported results of its operations in that country.
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