--CFO Edward C. White to retire at end of 2Q
--Structural change in Australian demand prompts $640 million
goodwill reduction
--CEO predicts stronger operating results in 2012
(Updates with news of CFO's retirement in paragraphs two through
four.)
DOW JONES NEWSWIRES
Owens-Illinois Inc.'s (OI) fourth-quarter loss widened on a
series of write-downs, while the glass-container maker's core
earnings improved slightly on higher sales.
The company also said Chief Financial Officer Edward C. White
plans to retire at the end of the second quarter and will be
succeeded by Stephen P. Bramlage Jr., the president of the
company's Asia-Pacific operations.
Bramlage joined Owens-Illinois in 2006 as treasurer. Previously,
he spent five years at PPG Industries Inc. (PPG).
White, who turns 65 in June, spent 38 years at the company and
was one of the architects of a strategy shift that moved its focus
exclusively to glass containers.
The company has been pressured by higher expenses, and its
Australian volume dropped last year as that country's currency
appreciated against the U.S. dollar, hurting wine exports and
weakening demand for beer, both of which provide much of the bottle
maker's business.
Owens-Illinois said the structural change in Australia's wine
market forced it to take $640 million off its goodwill estimate for
the Asia-Pacific region, which dragged down earnings in the latest
quarter.
The company also booked a $165 million charge in the latest
quarter stemming from its latest evaluation of asbestos-related
liabilities.
Year-earlier earnings suffered a $329 million charge after
Venezuelan President Hugo Chavez announced the appropriation of the
company's local affiliate, accusing it of causing environmental
damage and exploiting its workers.
"In 2012, we expect better operating performance and pricing to
cover inflation and lead to improved financial results," Chairman
and Chief Executive Al Stroucken said.
Owens-Illinois reported a loss of $771 million, or $4.69 a
share, compared with a year-earlier loss of $412 million, or $2.52
a share. Excluding goodwill impairment, restructuring charges and
other items, earnings rose to 48 cents from 45 cents. Revenue rose
5.2% to $1.82 billion.
Analysts polled by Thomson Reuters expected a 46-cent per-share
profit and $1.8 billion in revenue.
Gross margin narrowed to 16.7% from 17.8% on cost inflation.
Shares closed at $23.22 and slipped 1.8% to $22.81 after hours.
The stock had fallen 28% over the past year through Wednesday's
close.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com