Stock Monitor: Veritiv Post Earnings Reporting
LONDON, UK / ACCESSWIRE / March 05, 2018 / Active-Investors.com has just released a free earnings report on Owens-Illinois, Inc. (NYSE: OI) ("OI"). If you want access to this report 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 financial results on February 06, 2018, for the fourth quarter and for the full fiscal year ended December 31, 2017. The Company reported a strong financial performance in FY17 and expects higher earnings and cash flow generation in FY18. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the fourth quarter of the fiscal year 2017, OI's total revenues increased 4.26% to $1.71 billion from $1.64 billion in Q4 FY16. On a global basis, the improvement in net sales was due to an increase in price of 1% and a favorable currency translation, while the global sales volumes remained flat from the prior year's same quarter. The Company's revenue numbers lagged analysts' consensus estimates of $1.72 billion.
During Q4 FY17, OI's cost of goods sold was $1.59 billion, an increase of 11.56% from $1.43 billion in Q4 FY16. The Company's gross profit shrank 44.19% to $120 million in Q4 FY17 from $215 million in Q4 FY16.
For Q4 FY17, OI incurred a loss of $125 million from continuing operations compared to a loss of $65 million in Q4 FY16. The Company's net loss from continuing operations attributable to common shareholders was $133 million in Q4 FY17 compared to $70 million in Q4 FY16, reflecting a decrease of 90%. The Company's diluted loss per share from continuing operations was $0.81 for the reported quarter from a diluted loss per share of $0.43 in the year ago comparable quarter. OI's reported quarter results included pension settlement charges; restructuring, asset impairment and other charges; and note repurchase and write‐off charges. It also included a tax benefit from tax adjustments due to the Tax Cuts and Jobs Act 2017 (TCJA). The Company's diluted earnings per share (EPS), after adjusting for non-recurring items, increased 10% to $0.55 in Q4 FY17 from $0.50 in Q4 FY16. OI's adjusted EPS were higher than analysts' consensus estimates of $0.54.
For the full fiscal year ended December 31, 2017, OI's total revenues were $6.87 billion, up 2.49% from $6.7 billion in FY16, due to higher shipments, higher prices, and a favorable currency translation. The Company's cost of goods sold advanced 4.48% to $5.74 billion y-o-y, while its gross profit fell 6.52% to $1.13 billion y-o-y in FY17. OI's earnings from continuing operations shrank 13.5% to $205 million in FY17 from $237 million in FY16. The Company's net earnings from continuing operations attributable to common shareholders were $183 million in the year under review, a decrease of 15.28% from $216 million in the previous year. The Company's diluted EPS from continuing operations fell 15.91% to $1.11 for FY17 from $1.32 in FY16. The Company's diluted EPS, excluding special items, were $2.65 for FY17, up 14.72% from $2.31 in FY16.
During Q4 2017, OI's Europe segment's net revenues were $563 million, up almost 11.49% y-o-y. The segment reported an operating profit of $43 million in the reported quarter compared to $45 million in the year ago corresponding quarter, reflecting a decrease of 4.44%. The segment's operating margin was 7.6% in Q4 FY17, 1.3% lower than 8.9% in Q4 FY16.
For Q4 FY17, OI's North America segment's net revenues fell 0.39% to $509 million on a y-o-y basis. The segment's operating profit was $66 million for the reported quarter, an increase of 26.92% from $52 million in the year ago same quarter. This was because the higher food shipments offset the lower beer volumes. The segment's operating margin was 13% in Q4 FY17, 2.8% higher than 10.2% in Q4 FY16.
During Q4 FY17, OI's Latin America segment's net revenues surged 4.39% to $428 million on a y-o-y basis, mainly due to gains in beer and non-alcoholic beverages. The segment generated an operating profit of $89 million in the reported quarter versus $75 million in the year ago comparable quarter, reflecting an increase of 18.67%. The segment's operating margin was 20.8% in Q4 FY17, 2.5% higher than 18.3% in Q4 FY16.
OI's Asia/Pacific segment's net revenues advanced 0.51% to $198 million y-o-y in Q4 FY17. The segment's operating profit dipped 51.72% to $14 million in the reported quarter from $29 million in the year ago corresponding quarter, as higher food shipments were more than offset by the lower beer volumes. The segment's operating margin was 7.1% in Q4 FY17, 7.6% lower than 14.7% in Q4 FY16.
On December 31, 2017, OI had cash and cash equivalents of $492 million; the same as on December 31, 2016. For the year ended December 31, 2017, the Company's cash provided by continuing operating activities was $724 million compared to $758 million for the same period of 2016, reflecting a decrease of 4.49%. The Company's adjusted free cash flow was $393 million in FY17, 8.39% lower than $429 million in FY16.
At the end of 2017, OI's long-term debt was $5.12 billion compared to $5.13 billion at the end of 2016. During FY17, the Company retired its highest cost debt, i.e. $250 million of its 7.80% Senior Debentures due 2018.
OI's Board of Directors authorized a $400 million share repurchase program in 2017. The Company intends to repurchase about $100 million of shares in 2018.
For the full fiscal year 2018, OI expects earnings from continuing operations and adjusted earnings per share to be in the range of $2.75 to $2.85. The mid-point of this estimated range reflects a y-o-y improvement of 6%. The Company expects cash flow from continuing operating activities to be approximately $800 million and adjusted free cash flow to be approximately $400 million for FY18.
Stock Performance Snapshot
March 02, 2018 - At Friday's closing bell, Owens-Illinois' stock climbed 1.73%, ending the trading session at $21.71.
Volume traded for the day: 1.11 million shares.
Stock performance in the past twelve-month period – up 7.05%
After last Friday's close, Owens-Illinois' market cap was at $3.54 billion.
Price to Earnings (P/E) ratio was at 20.83.
The stock is part of the Consumer Goods sector, categorized under the Packaging & Containers industry. This sector was up 0.6% at the end of the session.
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