American National Can Group, Inc. Announces Improved Earnings for 1999.Business Editors CHICAGO--(BUSINESS WIRE)--Feb. 10, 2000 American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of National Can Group, Inc. (NYSE NYSE See: New York Stock Exchange : CAN) today announced diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ), before restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , for the quarter ended December December: see month. 31, 1999, of $0.13 per share, compared to $0.12 per share for the fourth quarter of 1998. After including the impact of restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). in both 1998 and 1999 results, fourth quarter EPS from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the was $0.07 per share in 1999 compared to $0.12 in 1998. The Company recorded an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. restructuring charge of $3.7 million, or $0.06 per share, in the fourth quarter of 1999. The charge is principally the result of severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and other employee-related costs associated with the company's cost-savings initiatives in both the U.S. and Europe. The charge also includes the provision for closing its Piscataway, NJ, plant, announced in December 1999, and the reversal of previously recorded reserves for two other plants, which will not be closed. The Company reported net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $526.9 million for the fourth quarter of 1999 versus $531.3 million for the same period a year ago. The slight decrease in revenues reflects the impact of lower pricing, primarily in Brazil and Turkey, and the adverse impact of the weaker Euro versus the dollar. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. before restructuring charges for the fourth quarter improved from $19.9 million in 1998 to $32.2 million in 1999. Operating income before restructuring charges for the fourth quarter of 1999 compared to 1998 increased due to ongoing cost reduction programs and the 1998 writedown writedown A reduction in the value of an asset carried on a firm's financial statements. For example, the firm's accountants, believing the inventory is overvalued, may decide to take a writedown by reducing inventory valuation. of a long term contractual arrangement with a customer, substantially offset by lower 1999 earnings in Brazil and Turkey. For the year ended December 31, 1999, the Company announced that diluted earnings per share, before restructuring and non-recurring items, increased 12%, to $1.78, versus $1.59 in 1998. After including restructuring and non-recurring items in both 1998 and 1999 results, earnings per share from continuing operations was $1.77 in 1999, compared to $2.10 in the prior year. The Company reported net sales of $2.33 billion in 1999 versus $2.46 billion in 1998. The 5.3% decline reflects the impact of lower aluminum costs passed through to customers via lower selling prices, lower U.S. sales volumes in the beer sector, adverse currency translation effects of the Euro versus the dollar, and lower selling prices in select markets. Operating income before restructuring charges rose 14% in 1999, from $198.5 million in 1998 to $226.6 million in 1999. American National Can's Chairman and Chief Executive Officer, Edward A. Lapekas stated, &uot;1999 was a momentous mo·men·tous adj. Of utmost importance; of outstanding significance or consequence: a momentous occasion; a momentous decision. and highly successful year for us. Our launch as a new public company on July 28 was a highlight in what has been an ongoing effort by all employees to create a new, lean identity for our company. The IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. also signaled the beginning of a new era in which we look forward to building on our manufacturing strengths and to creating increasing value for our shareholders.&uot; Mr. Lapekas added: &uot;Our ongoing cost reduction programs are continuing to eliminate waste and drive costs out of our operations, while maintaining critical focus on superior customer service and satisfaction. These initiatives have enabled us to significantly reduce our operating costs operating costs npl → gastos mpl operacionales , thereby improving operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . These cost-reduction programs will continue in the U.S. in 2000, and accelerate in our European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations.&uot;
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EPS Summary Three Months Ended Twelve Months Ended
December 31, December 31,
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1999 1998 1999 1998
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Diluted Earnings Per Share
From Continuing Operations $0.07 $0.12 $1.77 $2.10
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Adjustments for unusual and
non-recurring items, net of tax:
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Restructuring charge (credit)
and writedown of property
and equipment $0.06 $0.06 ($0.02)
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Write back of income tax
reserves relating to
favorable settlement ($0.59)
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Bad debt provision $0.10
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Gain recorded on sale of
container recycling business ($0.05)
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Diluted Earnings Per Share
from Continuing Operations,
excluding unusual &
non-recurring items $0.13 $0.12 $1.78 $1.59
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American National Can is a global leader in the manufacture of beverage cans A beverage can is most often an aluminium can manufactured to hold a single serving of a beverage. Overview The early metal beverage can was made out of steel (similar to a tin can) and had no pull-tab. , and maintains strategic partnerships with the leading soft drink and brewing brewing: see beer. companies worldwide. ANC ANC abbr. African National Congress ANC African National Congress: South African political movement instrumental in bringing an end to apartheid ANC n abbr (= has wholly owned operations in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , Asia, and Europe, including Turkey, as well as interests in Mexico, Japan, and South Korea. The company sells approximately 40 billion cans annually worldwide. Statements in this release, which are not historical facts, are forward-looking and subject to unforeseen risks and uncertainties. These risks and uncertainties include, but are not limited to, changes in local or global economic conditions, fluctuations in currency valuations, political instability instability /in·sta·bil·i·ty/ (-stah-bil´i-te) lack of steadiness or stability. detrusor instability , our customers' strategies and market performance, and the price of raw materials used to produce our products. Detailed analysis of these, and other, risks can be found in the company's Securities and Exchange Commission filings.
American National Can Group, Inc.
Consolidated Statements of Income
(In thousands of U.S. dollars, except per share amounts)
Three months ended Year ended
December 31, December 31,
------------------ -----------
1999 1998 1999 1998
---- ---- ---- ----
Net sales $ 526,881 $ 531,297 $2,328,074 $2,458,849
Cost of goods sold
(excluding depreciation) 430,690 439,885 1,848,406 1,984,369
Selling, general and
administrative expense 30,428 35,667 118,572 138,257
Research and development
expense 3,888 3,444 13,746 15,224
Depreciation and amortization 19,228 22,446 79,601 82,057
Goodwill amortization 10,455 9,978 41,202 40,474
Restructuring charge (credit)
and writedown of property
and equipment 6,106 175 5,786 (2,437)
--------- --------- --------- ---------
Operating income from
continuing operations 26,086 19,702 220,761 200,905
Interest expense 21,299 15,413 70,761 68,773
Interest income and other
financial income, net 2,330 2,924 13,466 10,634
--------- --------- --------- ---------
Income from continuing
operations before income
taxes, equity earnings,
minority interest,
extraordinary charge
and cumulative effect
of accounting change 7,117 7,213 163,466 142,766
Income tax expense 3,036 2,965 69,734 26,546
--------- --------- --------- ---------
Income from continuing
operations before equity
earnings, minority interest,
extraordinary charge and
cumulative effect of
accounting change 4,081 4,248 93,732 116,220
Equity in net earnings
(loss) of affiliates (638) 2,739 5,166 4,465
Minority interest 203 (699) (1,279) (4,997)
--------- --------- --------- ---------
Income from continuing
operations before
extraordinary charge
and cumulative effect
of accounting change 3,646 6,288 97,619 115,688
Income from discontinued
operations, net of tax
expense of $1,271, $2,086,
$7,122 and $13,599 1,940 98 4,557 527
Extraordinary charge, net
of tax benefit of $982 -- -- (1,823) --
Cumulative effect of
accounting change, net
of tax benefit of $1,382 -- -- -- (2,566)
--------- --------- --------- ---------
Net income $ 5,586 $ 6,386 $ 100,353 $ 113,649
========= ========= ========= =========
Earnings per share - basic
and assuming dilution
Income from continuing
operations before
extraordinary charge
and cumulative effect
of accounting change $ 0.07 $ 0.12 $ 1.77 $ 2.10
Income (loss) from
discontinued operations 0.03 0.00 0.08 0.01
Extraordinary charge -- -- (0.03) --
Cumulative effect of
accounting change -- -- -- (0.04)
--------- --------- --------- ---------
Net income $ 0.10 $ 0.12 $ 1.82 $ 2.07
========= ========= ========= =========
Weighted average shares
outstanding - basic
(in thousands) 55,000 55,000 55,000 55,000
========= ========= ========= =========
Weighted average shares
outstanding - assuming
dilution (in thousands) 55,221 55,000 55,094 55,000
========= ========= ========= =========
Dividends declared
per share $ 0.14 $ -- $ 0.42 $ --
========= ========= ========= =========
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