This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Owens-Illinois' CEO Discusses Q1 2012 Results - Earnings Call Transcript

Stocks in this article: OI

Looking to the second quarter, we expect that stronger year-over-year financial results will be led by improved operating performance in North America. We expect global shipments will, again, be slightly down on a year-over-year basis, primarily from lower volumes in Europe and Asia Pacific. Our price negotiations are now largely complete for 2012 so we should see a stronger price inflation spread.

Moving to the remainder of the year, our visibility of demand trends in the second half remains limited, especially in Europe. As a result, at this time, we expect the financial results of the second half of 2012 to track in line with the second half of 2011, which includes the improvements achieved in the back half of last year.

Let me review our operating performance beginning with Chart 3. Here, we show the first quarter segment operating profit for each of our 4 regions. Total operating profit was $260 million in the first quarter, up from $208 million last year. As you can see on the chart, 3 regions were well ahead of the prior year.

Our European operating profit was $108 million, up $32 million from the first quarter of 2011. The primary driver of improved results in Europe was good manufacturing performance of the plants, which operated at higher production rates in prior year and this helped us build inventory to support the seasonality for the wine, beer and food markets. In addition to strong operations, profit in the region benefited from higher prices that covered inflation in the quarter and also allowed for the recovery of some of the margin erosion that we experienced last year.

Overall, price and manufacturing performance were the key factors that drove improvement while shipment levels for the quarter were flat compared to the first quarter 2011. Year-over-year sales volumes varied considerably by country, end market and by month through the quarter. The quarter started out strong likely due to customer purchases in advance of price increases, but volumes weakened as the quarter progressed and then ended, again, on a somewhat stronger note.

Read the rest of this transcript for free on

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs