Owens Illinois (OI) has reported 26.87 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $49 million, or $0.30 a share in the quarter, compared with $67 million, or $0.41 a share for the same period last year. On an adjusted basis, earnings per share were at $0.30 for the quarter compared with $0.42 in the same period last year.
Revenue during the quarter went up marginally by 1.70 percent to $1,615 million from $1,588 million in the previous year period. Gross margin for the quarter contracted 58 basis points over the previous year period to 19.50 percent. Total expenses were 88.30 percent of quarterly revenues, up from 88.16 percent for the same period last year. That has resulted in a contraction of 14 basis points in operating margin to 11.70 percent.
Operating income for the quarter was $189 million, compared with $188 million in the previous year period.
"We are pleased to announce another quarter of positive progress on our transformation and towards our investor day goals," said chief executive officer Andres Lopez. "We delivered organic sales growth and margin expansion through the disciplined execution of our strategy. For the full year, we are committed to achieving solid sales and earnings growth in line with our prior guidance and are confident that the improved financial and operational stability we are achieving will help us generate greater value for our shareholders."
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $2.12 to $2.22. The company forecasts diluted earnings per share to be in the range of $2.40 to $2.50 on adjusted basis.
Operating cash flow remains negativeOwens Illinois has spent $337 million cash to meet operating activities during the quarter as against cash outgo of $302 million in the last year period. The company has spent $114 million cash to meet investing activities during the quarter as against cash outgo of $133 million in the last year period.
Cash flow from financing activities was $257 million for the quarter, down 6.88 percent or $19 million, when compared with the last year period.
Cash and cash equivalents stood at $312 million as on Mar. 31, 2017, up 30.54 percent or $73 million from $239 million on Mar. 31, 2016.
Working capital declines
Owens Illinois has witnessed a decline in the working capital over the last year. It stood at $560 million as at Mar. 31, 2017, down 5.08 percent or $30 million from $590 million on Mar. 31, 2016. Current ratio was at 1.30 as on Mar. 31, 2017, down from 1.31 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 2 days for the quarter from 33 days for the last year period. Days sales outstanding were almost stable at 39 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 36 days for the quarter compared with 76 days for the previous year period. At the same time, days payable outstanding went down to 77 days for the quarter from 81 for the same period last year.
Debt comes down marginallyOwens Illinois has recorded a decline in total debt over the last one year. It stood at $5,627 million as on Mar. 31, 2017, down 4.64 percent or $274 million from $5,901 million on Mar. 31, 2016. Total debt was 59.49 percent of total assets as on Mar. 31, 2017, compared with 60.91 percent on Mar. 31, 2016. Debt to equity ratio was at 9.13 as on Mar. 31, 2017, down from 14.19 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
