ARD - Free Research Report as Owens-Illinois' Sales and Adjusted EPS Grew Y-O-Y
Stock Monitor: Ardagh Group Post Earnings Reporting
LONDON, UK / ACCESSWIRE / July 31, 2018 / If you want access to our free earnings report on Owens-Illinois, Inc. (NYSE: OI), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=OI. The Company reported its second quarter fiscal 2018 operating and financial results on July 23, 2018. The glass container manufacturer surpassed earnings expectations. Additionally, the Company provided its guidance for the upcoming quarter and full fiscal year. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Owens-Illinois most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Earnings Highlights and Summary
For the second quarter of the fiscal year 2018, Owens-Illinois' net sales were $1.77 billion, which was 1% higher than $1.75 billion in Q2 2017. The prices were up approximately 2%, reflecting cost inflation and sales mix. The Company's revenue numbers lagged analysts' estimates of $1.82 billion.
During Q2 2018, Owens-Illinois' global sales shipments were down 1% on a y-o-y basis, largely attributed to the impact of external transportation strikes in Brazil and a raw material batch disruption in Mexico.
Owens-Illinois' segment's operating profit was $255 million in Q2 2018 compared to $252 million in Q2 2017. The Company's earnings from continuing operations before income taxes were $78 million in the reported quarter compared to $152 million in the year earlier same quarter.
For Q2 2018, Owens-Illinois' earnings from continuing operations were $56 million, or $0.31 per diluted share, compared to $143 million, or $0.85 per diluted share, in Q2 2017. The decline was primarily driven by higher charges related to restructuring activities.
Excluding certain items that the management considers not representative of ongoing operations, Owens-Illinois' earnings per share (EPS) were $0.77 in Q2 2018, up 3% compared to $0.75 in Q2 2017; and beating Wall Street's estimates of $0.75.
Segment Results
During Q2 2018, Owens-Illinois' Americas segment's net sales totaled $930 million compared to $942 million in Q2 2017. The segment's operating profit was $152 million in the reported quarter versus $161 million in the prior year's comparable quarter, as a favorable pricing was largely offset by higher operating costs. The Company announced during the reported quarter that its plans to shut down a plant in the US that primarily produces megabeer and is progressing with plans to expand capacity in Brazil to support customer needs.
For Q2 2018, Owens-Illinois' Europe segment's sales were $674 million, up 6% compared to $635 million in Q2 2017. The segment's operating profit was $101 million in the reported quarter, up more than 25% compared to $80 million in the prior year's corresponding quarter. This increase was driven by favorable foreign currency exchange rates, price increases, continued benefits from Total Systems Cost, and the recognition of an energy credit.
During Q2 2018, Owens-Illinois' Asia/Pacific segment's net sales totaled $153 million compared to $155 million in Q2 2017. The segment's operating profit was $2 million in the reported quarter compared to $11 million in the year earlier same quarter. The magnitude of the y-o-y decline was less than that reported in Q1 2018.
Share Repurchase
Owens-Illinois launched its $400 million share repurchase program during Q1 2018, and repurchased 2.7 million shares for approximately $50 million.
Outlook
Owens-Illinois is forecasting EPS from continuing operations to be in the range of $2.29 to $2.39 for FY18. Excluding certain items that the management considers not representative of ongoing operations, the Company continues to expect adjusted EPS to be in the band of $2.75 to $2.85, based on current foreign currency exchange rates.
Owens-Illinois is projecting EPS from continuing operations, and adjusted EPS to be approximately $0.75 for Q3 2018. For FY18, the Company continues to expect cash provided by continuing operating activities to be approximately $800 million, and adjusted free cash flow to be approximately $400 million, with downside pressure from currency.
Stock Performance Snapshot
July 30, 2018 - At Monday's closing bell, Owens-Illinois' stock was slightly down 0.65%, ending the trading session at $18.45.
Volume traded for the day: 1.01 million shares.
Stock performance in the last month — up 11.41%
After yesterday's close, Owens-Illinois' market cap was at $2.97 billion.
Price to Earnings (P/E) ratio was at 23.27.
The stock is part of the Consumer Goods sector, categorized under the Packaging & Containers industry.