O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — Q2 2012 Earnings Presentation
11 slides from O-i Glass's earnings presentation, Jul 25, 2012
Slide 1: O-I Earnings Presentation Second Quarter 2012
O-I earnings presentation Second Quarter 2012
Slide 2: Introduction, Agenda, Regulation G and Forward Looking Statements
1 Introduction Agenda Financial review Business discussion and outlook Concluding remarks and Q&A Presenters Regulation G The information presented above regarding adjusted net earnings relates to net earnings attributable to the Company exclusive of items management considers not representative of
Slide 3: Strong Operating Performance Boosts Profit
2 Strong Operating Performance Boosts Profit Financial review 1 Reportable segment sales in 2Q12 exclude $7 million of revenue, principally for the Company’s global equipment sales business. 2 Contractual cost-pass through provision primarily relates to North American energy costs. 3 Primarily relat
Slide 4: Balance Sheet, Cash Flow and Capital Structure
3 Balance Sheet, Cash Flow and Capital Structure Financial review Highlights of select balance sheet and cash flow items ($M) 1 Total debt less cash divided by bank credit agreement EBITDA. See appendix for EBITDA reconciliations. Current bank covenants allow for a maximum ratio of 4.0x. 2 Free cash
Slide 5: North American Region Drives Profit Improvement
4 North American Region Drives Profit Improvement Business discussion ($ Millions) Second Quarter Segment Operating Profit 2Q12 $266M (as reported) 2Q12 $289M (at prior year currency exchange rate) 2Q11 $224M
Slide 6: 3Q12 Business Outlook
3Q12 Business Outlook Favorable / Unfavorable Impact on Earnings 3Q12 vs 3Q11 Comments Operational Europe Sales volumes down mid to high single-digits; production levels down double-digits Price increases recovering inflation Fx headwind continues North America Sales volumes flat Operations running
Slide 7: Concluding Remarks and Q&A
6 Concluding Remarks and Q&A Good first half performance Excellent YoY recovery in North America Varying demand trends expected for 2H12 Positive shipment trends expected in South America Europe volumes expected to be a challenge Free cash flow now expected to be at least $250M for FY12 Debt paydown
Slide 8: Appendix
Appendix
Slide 9: Reconciliation of GAAP to non-GAAP Items
8 Reconciliation of GAAP to non-GAAP Items Three months ended June 30 Six months ended June 30 $ Millions, except per-share amts 2012 2011 2012 2011 Earnings EPS Earnings EPS Earnings EPS Earnings EPS Earnings from continuing operations $134 $0.81 $71 $0.42 $256 $1.54 $154 $0.92 attributable to the
Slide 10: Free Cash Flow
9 Free Cash Flow (1) Free cash flow is cash provided by continuing operating activities less capital spending. Three months ended Six months ended $Millions June 30 June 30 2012 2011 2012 2011 Net earnings $137 $80 $262 $166 Plus: Loss (gain) from disc. operations 1 (2) 2 (1) Earnings from continuin
Slide 11: Reconciliation of Credit Agreement EBITDA
Reconciliation of Credit Agreement EBITDA 10 $ Millions 2012 2011 Earnings from continuing operations attributable to the Company (382) $ 217 $ Interest expense 264 309 Provision for income taxes 110 106 Depreciation 388 402 Amortization of intangibles 24 18 EBITDA 404 1,052 Adjustments in accordanc