O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — Q3 2011 Earnings Presentation
16 slides from O-i Glass's earnings presentation, Oct 26, 2011
Slide 1: O-I Earnings Presentation Third Quarter 2011
Owens-Illinois, Inc. O-I earnings presentation Third quarter 2011
Slide 2: Introduction, Agenda, Regulation G and Forward Looking Statements
1 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
Slide 3: Third quarter 2011 results: Business discussion
2 Third quarter 2011 results Business discussion 3Q11: $0.84/sh EPS, $138M free cash flow (1) Shipments up 4% YoY Acquisitions add 3% volume, organic up 1% Organic up ~2%, excluding Australia Volume up in all regions Price up slightly YoY; inflation remained high Improved production volumes Producti
Slide 4: European segment review
European segment review Business discussion 3Q11 results (YoY) Shipments up slightly, higher production levels Price up ~2%, including energy surcharge Continued higher cost inflation Business trends 3Q11 customer and consumer trends Varied by country; exposure to macro uncertainty 2012 customer agr
Slide 5: South America segment review
South America segment review Business discussion 4 3Q11 results (YoY) Volume up ~24% Driven by organic growth, led by Brazil & Argentina Anniversary of CIV acquisition, Sept. 2011 ~22% segment operating profit margin O-I’s strategy drives above-market growth in Brazil Brazil capacity expansion plans
Slide 6: North America segment review
5 North America segment review Business discussion 3Q11 results (YoY) Shipments up 2% Wine and spirits – up; beer – flat Elevated cost inflation Higher operating rate 2 restarted furnaces running full Remediation plan progress High production to rebuild inventories Operational audits are yielding im
Slide 7: Asia Pacific segment review
6 Asia Pacific segment review Business discussion 3Q11 results (YoY) Total regional volume up slightly China volume up due to acquisitions Australia beer and wine shipments down ~15% Remediation plan and business trends Australian restructuring underway One furnace closure in Sept 2011 Second furnac
Slide 8: Stronger sales and pricing offset by cost inflation
7 Stronger sales and pricing offset by cost inflation Financial review 1 Reportable segment sales in 3Q11 exclude $15 million of revenue, principally for the Company’s global equipment sales business. 2 Contractual cost pass-through provisions conducted on a monthly or quarterly basis had an immater
Slide 9: Balance sheet, cash flow and capital structure
8 Balance sheet, cash flow and capital structure Financial review Highlight of select balance sheet and cash flow items (1) ($M) 1 All information presented is from continuing operations only. 2 Total debt less cash divided by bank credit agreement EBITDA. The 3Q11 and 3Q10 ratios were calculated ex
Slide 10: 4Q11 business outlook
4Q11 business outlook Favorable / Unfavorable Impact on Earnings 4Q11 vs 4Q10 Comments Operating Profit Europe Sales volume flat Higher price more than offset by inflation North America Sales volume flat to slightly up Slightly higher price offset by inflation Asia Pacific Weak demand in Australia L
Slide 11: Concluding remarks and Q&A
10 Concluding remarks and Q&A Good progress in the third quarter Volumes up in all regions Stronger operating performance in North America Restructuring underway in Australia $138M of free cash flow primarily used for debt reduction Expect $200 to $250M free cash flow in 2011 Top priority - further
Slide 12: Appendix
Appendix
Slide 13: Reconciliation of GAAP to non-GAAP items
12 Reconciliation of GAAP to non-GAAP items Charges for note repurchase premiums and write-off of finance fees Three months ended September 30 Nine months ended September 30 $ Millions, except per-share amts Earnings EPS Earnings EPS Earnings EPS Earnings EPS Earnings from continuing operations 119
Slide 14: Free cash flow
13 Free cash flow (1) Free Cash Flow equals cash provided by continuing operating activities less capital spending from continuing operations. Less: Loss (earnings) from discontinued ops Three months ended September 30 Nine months ended September 30 $ Millions 2011 2010 2011 2010 Net earnings 120 $
Slide 15: Reconciliation of credit agreement EBITDA to net earnings
Reconciliation of credit agreement EBITDA to net earnings attributable from continuing operations 14 (1) Based on historical EBITDA of acquired entities and for those periods not already included in net income from continuing operations. $ Millions 2011 2010 Net Income from continuing operations 204
Slide 16: Foreign currency exchange rate trends
Foreign currency exchange rate trends 15 Annual estimated EPS sensitivity to a 10% change in exchange rate with U.S. $ (1) $0.09 - $0.11 $0.09 - $0.11 $0.04 - $0.06 (1) Estimated based on 2011 net earnings mix, which includes segment profit, net interest, and tax expense recorded in each currency. $