O-I revises outlook for 2008 free cash flow

Owens-Illinois, Inc., announced 16 September 2008 that it expects free cash flow for 2008 to range between USD 400 million and 2007“s USD 332 million, down from the USD 500 million anticipated earlie…

Owens-Illinois, Inc., announced 16 September 2008 that it expects free cash flow for 2008 to range between USD 400 million and 2007“s USD 332 million, down from the USD 500 million anticipated earlier in 2008. The company“s outlook for free cash flow has been reduced due to factors including: weakening demand for the company“s products associated with continuing declines in the economies in Europe and the US; further actions by the company in response to weaker demand projections, including the extension of short-term capacity shutdowns previously planned for the 4Q to control inventory levels; acceleration of cash payments attributable to the recent announcements of the permanent closures of the plants in Lavington, Canada, and Castel Maggiore, Italy; and strengthening of the US dollar against foreign currencies over the last two months, especially the euro and the Australian dollar. “The fundamentals of O-I have not changed and we remain focused on the strategies we have been pursuing throughout the year”, said Ed White, senior vice president and CFO. Free cash flow is defined by the company as cash provided by continuing operating activities less capital expenditures. The company views free cash flow as an important measure of the performance of its operations and for allocation of resources.