|North American region drives strong year-over-year profit improvement
PERRYSBURG, Ohio (July 25, 2012) - Owens-Illinois, Inc. (NYSE: OI) today reported financial results for the second quarter ending June 30, 2012.
Earnings: O-I reported second quarter 2012 earnings from continuing operations attributable to the Company of $0.81 per share (diluted), compared to $0.42 per share (diluted) for the same period of the prior year. Adjusted net earnings (non-GAAP) were $0.81 per share, compared to $0.59 per share in the second quarter of 2011.
North American region delivers strong performance: The Company's North American region delivered strong year-over-year improvement and drove higher global segment operating profit.
Lower adjusted earnings expected in third quarter: Lower expected European sales and production levels, as well as unfavorable foreign currency exchange rate trends in most regions, will likely drive the Company's adjusted earnings below the prior year in the third quarter.
Free cash flow outlook remains solid: The Company is committed to generating higher levels of cash and now expects at least $250 million of free cash flow in 2012, compared to $220 million in 2011.
Second quarter net sales were $1.766 billion in 2012, down from $1.959 billion in the prior year second quarter, primarily due to unfavorable foreign currency translation. Higher pricing in the second quarter was offset by sales volumes that were lower than the prior year quarter.
Net earnings from continuing operations attributable to the Company in the second quarter of 2012 were $134 million, or $0.81 per share (diluted), compared with net earnings from continuing operations in the second quarter of the prior year of $71 million, or $0.42 per share (diluted). Adjusted net earnings (non-GAAP) also were $134 million, or $0.81 per share (diluted), in the second quarter of 2012 as there were no items management considers not representative of ongoing operations. These results compared with second quarter 2011 adjusted net earnings of $98 million, or $0.59 per share (diluted). A description of items in 2011 that management considers not representative of ongoing operations are listed in Note 1.