Focus Picks: Owens-Illinois (OI) And Terex Corp (TEX)

By Todd Campbell
Monday, December 16, 2013 4:02 PM EDT

Owens-Illinois (OI)

Is a Fortune 500 company that specializes in container glass products. It is one of the world's leading manufacturers of packaging products.

In the 3-month period ending February, OI has posted gains in 7 of the past 10 years, generating a 10.94% average return and a 18.80% median return. OI's standard deviation is 18.39% in the period and its correlation to the SPY is 0.48.
 



Earnings came in at $0.79 per share in Q3, up 14% YoY as pricing/mix contributed 2% to growth.  Global shipments climbed 2%, led by higher wine bottle sales in Europe thanks to market share growth.  Those higher volumes (up 7% in tons; the first growth in European volume in 7 quarters) were leveraged against lower costs (expected to shave $10 million a quarter) for improving Europe region profitability.  Sales in Europe totaled 733 million in the quarter, up from 652 million last year, producing segment margin of 13.2%, up from 11.3% a year ago.  In North America, sales were $529 million in Q3, up slightly from $513 million last year, thanks in part to non-alcoholic bottle growth for pre-packaged iced coffee and teas.  North American margin grew to 16.4% from 14.6% YoY.   Those results offset a 9% slide in volume in So. America and currency neutral results in Asia Pacific (weighed down by AU/NZ).  Heading into Q4, OI's guiding for >25% YoY EPS improvement.   OI paid down $168 million in debt during the quarter and OI expects net debt/EBITDA to fall to 2.5x from 2.9x in Q4.   The company expects to generate $300 million in free cash flow this year. 

Symbol Price Volume Avg Vol P/E Mkt Cap PEG Ratio
OI 33.95 1,297,787 1,069,260 33.28 5.5998B 1.45
Price/Book % 52-Wk High % 200-Day MA Short Ratio EPS Next Yr EPS Curr Yr %  50-Day MA
4.54 -0.35% 12.95% 3.7 3.12 2.74 4.23%

 

 
FYQ3 Earnings Transcript

Terex Corp (TEX)

Terex Corporation is an American manufacturer of a broad range of heavy equipment for a variety of industries, including construction, infrastructure, quarrying, recycling, surface mining, shipping, transportation, refining, utility and maintenance.

In the 3-month period ending February, TEX has posted gains in 8 of the past 10 years, generating a 19.02% average return and a 23.03% median return. TEX's standard deviation is 28.23% in the period and its correlation to the SPY is 0.80.

 



Improving cash flow supports a new dividend and buyback program.  North American/MENA industrial demand for aerial platforms remains strong while cranes remain weak, yet offer opportunity as non-residential construction picks up and Europe begins recovery.  In Q3, TEX earned $0.77 per share, up from $0.27 last year.  Net sales totaled $1.81 billion, essentially flat from last year.  Aerial platforms, with sales up 21.8% YoY in Q3, and material handling & port solutions (41% is Western Europe) segments are performing best, offsetting lackluster crane (40% is No. America/20% Western Europe) and construction (34% is No. America and 36% is Western Europe) demand.  TEX is guiding $2.05-2.25 per share for the full year, ex-items, up from $1.9-$2.10 prior guidance, thanks to a lower than expected tax rate. Sales are forecast at $7.3-$7.5 billion in sales (roughly 65% of sales come from outside the U.S.).  For the full year, TEX expects $400 million in free cash flow -- the best level since 2006.  The company's backlog is $1.83 billion, up 7% YoY; driven by AWP and port orders.   The company sold its off-highway truck manufacturing business last week, generating $160 million in cash.  TEX also initiated a $0.05 per quarter dividend and announced a $200 million buyback authorization that expires in December 2015.  Potential EU recovery offers upside opportunity as GDP turns positive (tepidly) and is expected up 1.1% and 1.5% in 2014 and 2015, respectively.  Real industrial investment is projected up 3% in 2014.  In October, industrial production in the EU improved 0.2% (+0.8% for EU28). 

 

Symbol Price Volume Avg Vol P/E Mkt Cap PEG Ratio
TEX 38.42 1,514,450 1,966,770 42.22 4.28B 1.91
Price/Book % 52-Wk High % 200-Day MA Short Ratio EPS Next Yr EPS Curr Yr %  50-Day MA
2.01 -2.41% 18.85% 5.2 2.92 2.13 6.96%

 

 

Corporate Presentations
Company's Q3 EPS transcript
 

 

Economic Data to Watch this Week: 

December 16th December 17th December 18th December 19th December 20th
Productivity -Rev  2.7%
Capacity Util.  78.4%
Industrial Prod.  0.4%		 CPI  0.1%
NAHB Housing Idx.		 Housing Starts
Building Permits
FOMC		 Existing Home Sales
Philly Fed  5
Leading Ind.  0.6%		 GDP  3rd Est.  3.6%

 

 

Top Scoring Stocks: 
 

LG CAP   12/10/2013 4 week MA MID CAP   12/11/2013 4 Week MA
Symbol Sector SCORE SCORE Symbol Sector SCORE SCORE
BEST       BEST      
AMP FINANCIALS 110 110 OCR SERVICES 110 108.75
MCHP TECHNOLOGY 110 108.75 RHI SERVICES 110 102.5
SIAL HEALTHCARE 110 88.75  ACXM TECHNOLOGY 105 102.5
APH TECHNOLOGY 105 105 ASBC FINANCIALS 105 102.5
AZO SERVICES 105 107.5 CINF FINANCIALS 105 103.75
BA INDUSTRIAL GOODS 105 103.75 DDS SERVICES 105 103.75
BDX HEALTHCARE 105 103.75 FOSL CONSUMER GOODS 105 106.25
CSX SERVICES 105 105 HBHC FINANCIALS 105 102.5
DIS SERVICES 105 107.5 HTLD SERVICES 105 105
GM CONSUMER GOODS 105 103.75 IRF TECHNOLOGY 105 85
NKE CONSUMER GOODS 105 105 MAN SERVICES 105 102.5
OI CONSUMER GOODS 105 105 MTD TECHNOLOGY 105 107.5
PH INDUSTRIAL GOODS 105 96.25 TRN SERVICES 105 107.5
TAP CONSUMER GOODS 105 96.25 VRSN TECHNOLOGY 105 108.75
X INDUSTRIAL GOODS 105 95 ADS FINANCIALS 100 97.5
YHOO TECHNOLOGY 105 105 ALXN HEALTHCARE 100 98.75
AAPL TECHNOLOGY 100 98.75 AVY CONSUMER GOODS 100 100
ANR BASIC MATERIALS 100 93.75 BWA CONSUMER GOODS 100 100
AON FINANCIALS 100 100  BYI SERVICES 100 98.75
CF BASIC MATERIALS 100 98.75  CAKE SERVICES 100 97.5
CLX CONSUMER GOODS 100 100 CHD CONSUMER GOODS 100 97.5
DG SERVICES 100 92.5 CHH SERVICES 100 97.5
DHR CONGLOMERATES 100 96.25 CMC BASIC MATERIALS 100 98.75
ECL CONSUMER GOODS 100 93.75 CRS BASIC MATERIALS 100 97.5
FB TECHNOLOGY 100 97.5 CVD HEALTHCARE 100 85
HIG FINANCIALS 100 92.5 CW INDUSTRIAL GOODS 100 98.75
HTHIY.PK INDUSTRIAL GOODS 100 91.25 DECK CONSUMER GOODS 100 100
ICE FINANCIALS 100 98.75 EDMC SERVICES 100 97.5
INFY TECHNOLOGY 100 100 GNTX CONSUMER GOODS 100 97.5
NUE BASIC MATERIALS 100 97.5 HP BASIC MATERIALS 100 97.5
NWL CONSUMER GOODS 100 98.75 HRL CONSUMER GOODS 100 86.25
RCL SERVICES 100 103.75 ILMN HEALTHCARE 100 97.5
WIT TECHNOLOGY 100 98.75 KSU SERVICES 100 102.5
A TECHNOLOGY 95 93.75  LVLT TECHNOLOGY 100 98.75
ABBV HEALTHCARE 95 85 MD HEALTHCARE 100 98.75
ACE FINANCIALS 95 97.5 NDAQ FINANCIALS 100 103.75
APD BASIC MATERIALS 95 93.75 OTEX TECHNOLOGY 100 98.75
BLK FINANCIALS 95 97.5 PLL INDUSTRIAL GOODS 100 98.75
BP BASIC MATERIALS 95 92.5 SF FINANCIALS 100 98.75
CB FINANCIALS 95 97.5 TEX INDUSTRIAL GOODS 100 100
CELG HEALTHCARE 95 92.5 URS SERVICES 100 86.25
CI HEALTHCARE 95 93.75 UTHR HEALTHCARE 100 103.75
CSC TECHNOLOGY 95 93.75 VPRT SERVICES 100 98.75
SMALL CAP   12/12/2013 4 Week MA ADRS   12/9/2013 4 Week MA
Symbol Sector SCORE SCORE Symbol COUNTRY SCORE SCORE
BEST       BEST      
ANGO HEALTHCARE 105 102.5 ARMH United Kingdom 95 88.75
DXPE SERVICES 105 103.75 JST China 95 96.25
HAE HEALTHCARE 105 86.25 SNN United Kingdom 95 95.00
MEI TECHNOLOGY 105 103.75 ASR México 90 88.75
PJC FINANCIALS 105 100 BUD Belgium 90 87.50
AIR INDUSTRIAL GOODS 100 97.5 INFY India 90 88.75
ARII SERVICES 100 98.75 JOBS China 90 86.25
ARTC HEALTHCARE 100 86.25 LFC China 90 92.50
BDC INDUSTRIAL GOODS 100 100 NVO Denmark 90 76.25
CONN SERVICES 100 85 RIO United Kingdom 90 88.75
EPAY TECHNOLOGY 100 97.5 SIG Bermuda 90 92.50
GBL FINANCIALS 100 98.75 APSA Argentina 85 82.50
LL SERVICES 100 91.25 ASX Taiwan 85 87.50
MIDD INDUSTRIAL GOODS 100 98.75 HMC Japan 85 87.50
MPWR TECHNOLOGY 100 98.75 HMIN China 85 83.75
NCI SERVICES 100 100 IX Japan 85 87.50
OUTR SERVICES 100 102.5 MT Luxembourg 85 86.25
SCVL SERVICES 100 93.75 PUK United Kingdom 85 87.50
TREX INDUSTRIAL GOODS 100 102.5 RHHBY Switzerland 85 87.50
AVAV INDUSTRIAL GOODS 95 96.25 SHPGY United Kingdom 85 83.75
BBSI SERVICES 95 92.5 TSU Brazil 85 83.75
BZH INDUSTRIAL GOODS 95 93.75 WIT India 85 83.75
CBRL SERVICES 95 96.25 AKZOY Netherlands 80 82.50
CCC INDUSTRIAL GOODS 95 97.5 BASFY Germany 80 82.50
CIR INDUSTRIAL GOODS 95 92.5 BAYRY Germany 80 83.75
DPZ SERVICES 95 92.5 BP United Kingdom 80 78.75
EFII TECHNOLOGY 95 93.75 BT United Kingdom 80 77.50
EVC SERVICES 95 97.5 CEO China 80 82.50
FARO TECHNOLOGY 95 92.5 CRESY Argentina 80 82.50
FFIN FINANCIALS 95 98.75 CRH Ireland 80 82.50
GHM INDUSTRIAL GOODS 95 91.25 GA China 80 78.75
HZO SERVICES 95 97.5 IRS Argentina 80 77.50
IVC HEALTHCARE 95 88.75 MPEL Hong Kong 80 80.00
KFY SERVICES 95 93.75 NTL Argentina 80 83.75
MTRX INDUSTRIAL GOODS 95 93.75 SCMWY Switzerland 80 82.50
MTX BASIC MATERIALS 95 93.75 SID Brazil 80 78.75
NAFC SERVICES 95 93.75 TOT France 80 86.25
NPBC FINANCIALS 95 95 TRIB Ireland 80 82.50
NTCT TECHNOLOGY 95 97.5 YZC China 80 72.50
NTRI SERVICES 95 96.25       72.50
NWBI FINANCIALS 95 92.5       72.50
ORB INDUSTRIAL GOODS 95 95       72.50
OZRK FINANCIALS 95 98.75       72.50
POL BASIC MATERIALS 95 95       72.50
PRO TECHNOLOGY 95 95       72.50
SYKE TECHNOLOGY 95 98.75       72.50
TBBK FINANCIALS 95 96.25       72.50
TWIN INDUSTRIAL GOODS 95 97.5       72.50
UEIC CONSUMER GOODS 95 91.25       72.50
UHAL SERVICES 95 97.5       72.50
 

None.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.