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Owens-Illinois posts net loss

On 23 April, US glass and plastic packaging maker Owens-Illinois Inc., reported a quarterly net loss of more than US$ 700 million, compared with a profit a year earlier, after taking a big asbestos-re…

On 23 April, US glass and plastic packaging maker Owens-Illinois Inc., reported a quarterly net loss of more than US$ 700 million, compared with a profit a year earlier, after taking a big asbestos-related charge. The Toledo, Ohio-based company also said it expects operating earnings for the second quarter and full-year to exceed 2001 results, excluding special items. Owens-Illinois reported a first-quarter net loss of US$ 705.3 million, or US$ 4.86 a share, including special items, compared with a profit of US$ 48.9 million, or 30 cents a share, in the prior year. The company said it took a quarterly charge of US$ 475 million, or US$ 2.11 a share, to adjust its reserve for estimated asbestos-related costs. It said it raised the reserve to US$ 712.5 million to provide for indemnity payments and legal fees arising from asbestos personal injury lawsuits and claims. Owens-Illinois said it expects asbestos-related cash payments in 2002 to be moderately lower than 2001 payments. It said it anticipates cash flows from operations and other resources will be sufficient to meet all asbestos costs. The company reported first-quarter operating earnings of 44 cents a share, excluding special items and the effects of an accounting change, compared with pro forma earnings of 38 cents a share, in the prior year.

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