29 October 1998: US-based Owens-Illinois Inc. said its third quarter profits before extraordinary items increased 24% to US$ 114 million, but cautioned weakness in some overseas markets could limit fo…
29 October 1998: US-based Owens-Illinois Inc. said its third quarter profits before extraordinary items increased 24% to US$ 114 million, but cautioned weakness in some overseas markets could limit fourth quarter earnings growth. The company reported third quarter earnings, before extraordinary items, of US$ 0.69 per diluted share – one cent over the consensus forecast of analysts polled by First Call and 6 % higher than the US$ 0.65 per share seen in the 1997 quarter. After extraordinary items, the company reported profits of US$ 114 million, or US$ 0.69 per share, compared with US$ 75 million, or US$ 0.53 per share, a year ago. It said third quarter sales rose 17% to US$ 1.45 billion. “We had good operating performances from a number of our businesses and made important progress in integrating our recent acquisitions in the third quarter,” said Owens-Illinois chief executive Joseph Lemieux. Lemieux said he expected solid performances in many markets in the fourth quarter, but cautioned that continuing weakness in South America and softness in some markets in the United Kingdom and Central Europe could limit earnings growth. “While the pace of our growth may be slowed by weak economic conditions in these geographic areas, our operations are running well and our long term prospects remain good,” he said. The 1998 third quarter results include the operations of the glass and plastics packaging businesses that Owens-Illinois acquired from BTR Plc on April 30. The Asia-Pacific glass container businesses acquired from BTR contributed to increased sales and operating profit of the company“s international glass container operations, Owens-Illinois said. Meanwhile, the company“s board of directors has declared the quarterly dividend of US$ 0.59 for each share of the company“s US$ 2.375 Convertible Preferred Stock, payable 16 November to holders of record 1 November. Owens-Illinois is the largest manufacturer of glass containers in North America, South America, Australia, New Zealand, and India, and the second-largest in Europe.