DOW JONES NEWSWIRES
Owens-Illinois Inc.'s (OI) first-quarter profit slipped 15%, but
still topped Wall Street's expectations, as the glass-container
maker's bottom line was hurt by higher costs including inflation
and interest expense on additional borrowings for acquisitions.
Chairman and Chief Executive Al Stroucken said shipments
increased across all regions and categories.
The company--which makes containers for beverages in 21
countries--had seen falling revenue and margins of late, with
demand up globally for wine, food and spirits but sluggish for beer
bottles in more mature markets.
Last October, Venezuelan President Hugo Chavez expropriated the
company's local affiliate, accusing it of causing environmental
damage and exploiting its workers. The Venezuelan operations
contributed about 3% of global sales.
Owens-Illinois reported a profit of $72 million, or 44 cents a
share, down from $85 million, or 50 cents a share, a year earlier.
Excluding restructuring charges, earnings rose to 47 cents from 48
cents.
Revenue climbed 11% to $1.72 billion as recent acquisitions in
South America and China and improving market conditions drove a 7%
increase in tonnes shipped.
Analysts polled by Thomson Reuters had most recently forecast
earnings of 45 cents on $1.65 billion in revenue.
Sales in Europe, the company's largest market, rose 4.5% as
profit jumped 27%. North American sales increased 4.3%, but profit
fell 6.3%. Asia Pacific sales jumped 4.8%, but profit slumped
35%.
Gross margin narrowed to 19.4% from 19.6%.
Shares edged up 1% to $31 in after-hours trading. As of the
close, the stock had declined 14% the past year.
-By Ian Thomson, Dow Jones Newswires; 212-416-2314;
ian.thomson@dowjones.com