O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — Q4 2010 Earnings Presentation
15 slides from O-i Glass's earnings presentation, Jan 26, 2011
Slide 1: O-I Earnings Presentation Full Year and Fourth Quarter 2010
O-I Earnings Presentation Full Year and Fourth Quarter 2010 Owens-Illinois, Inc.
Slide 2: Introduction, Agenda, Regulation G and Forward Looking Statements
Introduction Agenda Business discussion Financial review Business outlook Concluding remarks and Q&A Presenters Regulation G The information included in this presentation regarding adjusted net earnings relates to net earnings attributable to the Company exclusive of items management considers not r
Slide 3: 2010 Results Business Discussion
2010 Results Business Discussion Full Year 2010: Transitioned from margin repair to growth strategy Adjusted EPS was $2.60/sh, $2.61/sh in 2009 Shipments down 1% from 2009 Underlying shipments up ~2% (2) Manufacturing costs down, non-operating costs up Venezuela treated as discontinued operations Ac
Slide 4: Higher Segment Operating Profits Driven by South America
Higher Segment Operating Profits Driven by South America Business Discussion ($ Millions) ($ Millions) Full Year Segment Operating Profit Fourth Quarter Segment Operating Profit 11.4% 11.8% 13.6% 14.6% 21.0% 23.0% 14.2% 14.2% 5.5% 7.6% 6.9% 12.2% 21.1% 23.4% 17.8% 13.2% Margin: Total 2010: $964M 14.
Slide 5: Investing In Future Profitable Growth
Investing In Future Profitable Growth Business Discussion Increasing Capacity in Emerging Markets Expanding in Fast Growing Emerging Markets 1 This acquisition is a joint venture. South America China & SE Asia (# Furnaces) 23 9 20 15 0 5 10 15 20 25 30 2007 2010 2007 2010 Additional 2010 Activity Co
Slide 6: Improved Operational Results Offset by Non-operational Costs
Improved Operational Results Offset by Non-operational Costs Financial Review 1 Reportable segment sales exclude $10 million of revenue, principally for the Company’s global equipment sales business. 2 Contractual cost pass-through provisions also include the transfer of third-party costs, such as s
Slide 7: Balance Sheet, Cash Flow, and Asbestos Review
Balance Sheet, Cash Flow, and Asbestos Review Financial Review Highlight of Select Balance Sheet and Cash Flow Items (1) ($ Millions) 1 All information presented is from continuing operations only. 2 Total debt less cash divided by bank credit agreement EBITDA. The FY10 and FY09 ratios were calculat
Slide 8: 2011 Free Cash Flow Approximately $300 Million
2011 Free Cash Flow Approximately $300 Million Business Outlook Favorable / Unfavorable Impact on Earnings Year-over-Year 1Q11 vs 1Q10 FY11 vs FY10 2011 Annual Comments ($ pre-tax) Price/Product Mix Price / Product mix: up to +1% Up across all regions Sales Volume Volume: +5% to 10% Includes organic
Slide 9: Concluding Remarks and Q&A
Concluding Remarks and Q&A 2010 Was a Transition Year for O-I Concluded three year pricing restoration and restructuring program Shifted focus to profitable growth in emerging markets Strategy to Drive Continued Profitable Growth in 2011 Continued acquisitions and plant expansions in attractive emer
Slide 10: Appendix
Appendix
Slide 11: Reconciliation of GAAP to non-GAAP Items
Reconciliation of GAAP to non-GAAP Items (a) – For GAAP purposes in 4Q10 and 4Q09, dilutued earnings per share of common stock were equal to basic earnings per share due to the loss from continuing operations recorded in each period. For adjusted net earnings, diluted and basic average shares differ
Slide 12: Full Year 2010 Reconciliations
Full Year 2010 Reconciliations 1 Reportable segment sales exclude $37 million of revenue, principally for the Company’s global equipment sales business. 2 Contractual cost pass-through provisions also include the transfer of third-party costs, such as shipping, to customers in North America. 3 Inclu
Slide 13: Free Cash Flow
Free Cash Flow (1) Free Cash Flow equals cash provided by continuing operating activities less capital spending from continuing operations. $ Millions Three months ended December 31 Twelve months ended December 31 2010 2009 2010 2009 Net earnings (loss) $ (405) $ (152) $ (5) $ 198 Less: Loss (earnin
Slide 14: Financials for Discontinued Operations
Financials for Discontinued Operations Selected Financial Highlights ($ Millions) Adjusted Net Earnings Per Share (a) The Company deemed its Venezuelan subsidiary as a discontinued operations in 4Q10. Therefore, differences between reported results and results from continuing operations exist only t
Slide 15: Pro Forma Net Earnings – Venezuela Discontinued Ops
Pro Forma Net Earnings – Venezuela Discontinued Ops Three months ended September 30, 2010 Dollars in millions As Reported Pro Forma Adjustments Pro Forma Adjusted Earnings before income taxes $208 $20 $188 Provision for income taxes (57) (5) (52) Net earnings 151 15 136 Net earnings attributable to