O-i Glass, Inc. · NYSE:OI
O-i Glass — Owens Illinois — Q3 2009 Earnings Presentation
14 slides from O-i Glass's earnings presentation, Oct 28, 2009
Slide 1: O-I Earnings Presentation Third Quarter 2009
O-I Earnings Presentation Third Quarter 2009 October 28, 2009
Slide 2: Introduction, 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 earnings from continuing operations exclusive of items management considers not representative of ongoing operations do
Slide 3: Business Discussion: Highlights
Business Discussion: Highlights Improved financial performance amid challenging market conditions First YoY earnings improvement since 3Q08 Shipment declines now consistent with consumer consumption Except South America with double-digit declines Continued temporary production curtailments Reduced i
Slide 4: Business Discussion: Segment Operating Profit
Business Discussion: Segment Operating Profit Most regions’ 3Q09 results exceeded prior year levels ($millions) $115 $136 $83 $65 $43 $83 $64 $42 $92 $39 $42 $128 $0 $20 $40 $60 $80 $100 $120 $140 $160 Europe North America South America Asia Pacific 3Q08 (as reported) 3Q09 (at prior year currency ex
Slide 5: Financial Review: Sales, Profit and EPS Reconciliations
Financial Review: Sales, Profit and EPS Reconciliations Benefits from footprint initiative and lower costs dampen impact of lower volumes Segment Sales Segment Operating Profit Adjusted Net Income ($ Millions) ($ Millions) (Non-GAAP EPS) 3Q08 $1,998 $288 $0.90 Sales Volume (150) (57) (0.25) Price an
Slide 6: Financial Review: Costs
Financial Review: Costs Cost profile improving due to moderating inflation and strategic footprint initiative Full-year cost inflation YoY change ($millions) Footprint initiative drives benefits from lower fixed costs Quarterly YoY benefits ($millions) Range for expected cost inflation $0 $100 $200
Slide 7: Financial Review: Balance Sheet and Cash Flow
Financial Review: Balance Sheet and Cash Flow Strong financial position allows for flexibility to execute growth priorities Debt maturity schedule Debt $3.722 billion debt; up slightly from 2Q09 2.3x leverage ratio per bank credit agreement 1 $760 million available under global revolving credit faci
Slide 8: Business Outlook: 4Q09
Business Outlook: 4Q09 Reflects normal seasonal patterns and higher non-operating costs 4Q09 Outlook Favorable / Unfavorable Impact on Profits Factor Year-over-Year (4Q08 to 4Q09) Sequential (3Q09 to 4Q09) Sales Volume Temporary Production Curtailments Price/Mix Input Costs Footprint Realignment Sav
Slide 9: Concluding Remarks and Q&A
Concluding Remarks and Q&A Third Quarter 2009 arnings Presentation Ci
Slide 10: Appendix
October 28, 2009 Appendix Third Quarter 2009 Earnings Present: 10 Ci
Slide 11: Reconciliation of GAAP to non-GAAP Items (3Q)
Reconciliation of GAAP to non-GAAP Items (3Q) Three months ended September 30 2009 2008 $ Millions, except per share amounts Earnings EPS Earnings EPS Net earnings attributable to the Company $126.7 $0.74 $78.6 $0.46 Items that management considers not representative of ongoing operating consistent
Slide 12: Reconciliation of GAAP to non-GAAP Items (YTD 3Q)
Reconciliation of GAAP to non-GAAP Items (YTD 3Q) Nine months ended September 30 2009 2008 $ Millions, except per share amounts Net earnings attributable to the Company $321.1 $1.89 $488.8 $2.86 Less gain on sale of discontinued operations 321.1 1.89 480.1 2.81 Items that management considers not re
Slide 13: Free Cash Flow Calculation
Free Cash Flow Calculation Nine months ended Sept 30 2009 2008 3Q 09 3Q 08 $ Millions $12.7 $78.6 Net earnings attributable to the company $321.1 $488.0 – Less: gain on sale of discontinued operations - (7.9) 126.7 78.6 Earnings from continuing operations 321.1 480.1 Non-cash charges: 104.1 119.3 De
Slide 14: Foreign Currency Exchange Rate Trends
Foreign Currency Exchange Rate Trends 1 Average exchange rate for the quarter 1 EUR v USD 1.15 1.30 1.45 1.60 4Q 1Q 2Q 3Q 4Q 2007 2008 2009 AUD v USD 0.60 0.70 0.80 0.90 1.00 4Q 1Q 2Q 3Q 4Q 2007 2008 2009 FX Translation Impact on Sales, Segment Operating Profit and EPS (Compared to prior year) 2008