O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — Q3 2014 Earnings Presentation
13 slides from O-i Glass's earnings presentation, Oct 28, 2014
Slide 1: Safe Harbor Comments
Safe Harbor Comments Regulation G The information presented here regarding adjusted net earnings relates to net earnings from continuing operations attributable to the Company exclusive of items management considers not representative of ongoing operations and does not conform to U.S. generally acce
Slide 2: Third Quarter 2014 Summary
Third Quarter 2014 Summary 2 Adjusted EPS of $0.75 Down 5% from prior year Shipments down ~3% Double-digit growth in South America offset by declines elsewhere Mixed results in segment operating profit South America increase due to strong, broad-based growth in beer Europe gains driven by asset opti
Slide 3: O-I to supply Constellation with glass to support growing beer business
O-I to supply Constellation with glass to support growing beer business O-I to help supply Constellation’s (CBI) glass needs in Mexico O-I and CBI to form 50-50 joint venture that will: Purchase glass container plant adjacent to CBI’s brewery Expand the plant from one furnace to four Supply approxim
Slide 4: Regional Financial Performance: Europe and North America
Regional Financial Performance Europe and North America 4 Shipments down 1% Broad-based macro weakness Flat production volume Ongoing gains from European asset optimization program North America ($ Millions) 3Q 2014 3Q 2013 Net Sales - Currency neutral1 $709 $717 $733 Segment Operating Profit $104 $
Slide 5: Regional Financial Performance: South America and Asia Pacific
Regional Financial Performance South America and Asia Pacific 5 Shipments in tonnes up ~15%(2) Andean demand up double digits Brazil shipments up mid-single digits Improved productivity Non-recurrence of downtime in prior year from general strikes in Colombia Asia Pacific ($ Millions) 3Q 2014 3Q 201
Slide 6: 3Q14 Segment Sales and Operating Profit
3Q14 Segment Sales and Operating Profit 6 Note: Reportable segment sales exclude the Company’s global equipment business Price up ~1% Shipments down ~3% USD significantly strengthened as quarter progressed Segment Sales ($ Millions) 3Q13 $1,780 Price 14 Sales volume (39) Currency (19) Total reconcil
Slide 7: 3Q14 Adjusted EPS Bridge
3Q14 Adjusted EPS Bridge 7 Adjusted Earnings Per Share 3Q13 $0.79 Segment operating profit (0.05) Retained corporate costs 0.03 Net interest expense 0.01 Non-controlling interests (0.01) Effective tax rate (0.02) Total reconciling (0.04) 3Q14 $0.75 Improvement in corporate costs largely driven by lo
Slide 8: 4Q 2014 Business Outlook
4Q 2014 Business Outlook 8 Operational 4Q14 vs. 4Q13 Europe Sales volume flat Continuing benefits from asset optimization FX headwind North America Sales volume down mid-single digits Production curtailments to manage inventory South America Sales volume flat, with uncertainty in Brazil Improved pro
Slide 9: Recent, escalating headwinds dampen 2015 outlook
Recent, escalating headwinds dampen 2015 outlook 9 External factors adversely impact 2015 targets 2015 Earnings per share 2015 Free Cash Flow Stronger US Dollar (~$0.20) ($30-$50M) Pension expense, driven by lower discount rates (~$0.35) n/a Total (~$0.55) ($30-$50M) Adjusted EPS in 2015 expected to
Slide 10: Balanced approach to use of cash
Balanced approach to use of cash 10 Capital Investment Capital Allocation
Slide 11: Appendix
Appendix 11
Slide 12: Price, Volume and Currency Impact on Reportable Segment Sales
Price, Volume and Currency Impact on Reportable Segment Sales 12 1 Sales negatively impacted by shut down of non-strategic flat glass business in 4Q13 2 Reportable segment sales exclude the Company’s global equipment business $ Millions Europe North America South America 1 Asia Pacific Total 2 3Q13
Slide 13: Reconciliation to Adjusted Earnings
Reconciliation to Adjusted Earnings 13 $ Millions The reconciliation below describes the items that management considers not representative of ongoing operations. Unaudited 2014 2013 2014 2013 61 $ 132 $ 297 $ 346 $ Restructuring, asset impairment and related charges 8 8 5 5 Restructuring, asset imp