Owens Illinois Inc. Earnings: Swinging to a Loss After Two Quarters of Profit

S&P 500 (NYSE:SPY) component Owens Illinois Inc. (NYSE:OI) reported its results for the fourth quarter. Owens-Illinois manufactures glass containers primarily for the food and beverage industries in Europe, North America, South America, and Asia Pacific.

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Owens Illinois Earnings Cheat Sheet for the Fourth Quarter

Results: Loss widened to $771 million ($4.69 per diluted share) from $412.1 million (loss of $2.52 per share) in the same quarter a year earlier.

Revenue: Rose 5.2% to $1.82 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: OI reported adjusted net income of 48 cents per share. By that measure, the company beat the mean estimate of 46 cents per share. Analysts were expecting revenue of $1.8 billion.

Quoting Management: Chairman and Chief Executive Officer Al Stroucken said, “We increased our free cash flow generation over prior year levels and focused on debt reduction in the second half of the year. Stronger shipments across all of our regions in 2011 were driven by prior year acquisitions and organic growth. However, high cost inflation and operational issues impacted our earnings for the full year. We took immediate action and refocused on our operations, and we are increasing prices to recover inflation.”

Key Stats:

The company’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $116 million in the third quarter, a profit of $73 million in the second quarter and $72 million in the first.

The company has now beaten estimates the last two quarters. In the third quarter, it topped expectations with net income of 84 cents versus a mean estimate of net income of 72 cents per share.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved up from 50 cents a share to 55 cents over the last ninety days. For the fiscal year, the average estimate has moved up from $2.28 a share to $2.37 over the last ninety days.

Stock Performance: Shares of OI were up 0.3% from the previous close.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com