US group Owens-Illinois, Inc. reported last week that net earnings increased 13% in 1996, the fifth consecutive year of earnings growth.
The net earnings of US$ 191.1 million, or US$ 1.58 per share, …
US group Owens-Illinois, Inc. reported last week that net earnings increased 13% in 1996, the fifth consecutive year of earnings growth. The net earnings of US$ 191.1 million, or US$ 1.58 per share, were the highest for any year in the history of the company. Net earnings in 1995 were US$ 169.1 million, or US$ 1.40 per share. Since its initial public offering of common stock in December 1991, Owens-Illinois has now achieved five consecutive years of double-figure increases in earnings from continuing operations, excluding the effects of unusual items. Good performances by the plastics and closures operations, the domestic glass container business, and several international affiliates all contributed to the 1996 results. For the fourth quarter of 1996, earnings increased 10.6% to US$ 22.9 million, or US$ 0.19 per share. Earnings in the fourth quarter of 1995 were US$ 20.7 million, or US$ 0.17 per share. The 1995 results included unusual credits and charges which offset one another. Fourth quarter sales in 1996 rose 7.8% to US$ 962.1 million, compared with sales of US$ 892.4 million in the fourth quarter of 1995. The increase was due in part to higher domestic shipments of glass containers, reflecting continued strong demand for beer bottles; increased unit shipments by almost all international affiliates; and strong demand for plastic containers and closures. Joseph H. Lemieux, Owens-Illinois chairman and CEO, said, “The continuation of our record of strong earnings growth in 1996 is a result of ongoing efforts throughout the company to improve quality, productivity, and cost control while investing in our future and pursuing growth opportunities.” Owens-Illinois says it has invested more than US$ 1 billion over the past four years in capital expenditures to improve productivity, increase capacity in key locations, and support its strategy to accelerate long-term growth. “We are looking forward to another strong year in 1997, driven by improved performances in our existing businesses combined with the contributions of our recently completed acquisitions in Europe and the US,” Mr. Lemieux said. The domestic glass container operations continued to benefit from strong demand for beer bottles, reflecting continued growth in consumer demand for premium and specialty beers. This nearly offset lower shipments of food and juice bottles and the absence of sales of soft drink bottles due to the conversion from glass to plastic. Despite record results in the United Kingdom and Poland, operating profit for the international operations was lower in 1996 due to weak economic conditions in Brazil and Venezuela, following exceptionally strong performances in 1995. Reported results of the Venezuelan operations for most of 1996 also were adversely affected by Venezuela“s currency devaluation. Decreased earnings for the Brazilian and Venezuelan subsidiaries also resulted in a reduction in the amount of those earnings attributed to minority share owners. Affiliates in Hungary, Finland, and Estonia, which were acquired at the end of 1995, made positive contributions to operating profit in 1996.