US glass and plastic packaging maker Owens-Illinois Inc. posted a net loss for its fourth quarter following a year-earlier profit, after taking a charge for a loss on the sale of glass container opera…
US glass and plastic packaging maker Owens-Illinois Inc. posted a net loss for its fourth quarter following a year-earlier profit, after taking a charge for a loss on the sale of glass container operations in India. The Toledo, Ohio-based bottlemaker reported a net loss of US$ 5.2 million, or 7 cents per share, for the quarter compared with a profit of US$ 32.3 million, or 18 cents per share, a year ago. Net figures included a 25-cent per share loss stemming from the operations sale. Cost-cutting and lower interest expense helped boost Owens-Illinois“ earnings before one-time items to US$ 32.1 million, or 18 cents per share, from US$ 23 million, or 12 cents per share, a year ago. The company said it expected lower energy costs, stronger pricing, and the inclusion of newly acquired operations in Canada to help its first-quarter and full-year 2002 operating results beat year-ago figures. Analysts had expected Owens-Illinois to earn 15 cents to 21 cents per share for its fourth quarter, with an average estimate calling for 18 cents per share, according to market research firm Thomson Financial/First Call. Net sales grew slightly to US$ 1.35 billion from US $1.33 billion a year earlier. The company cut its quarterly interest expense by US$ 27.4 million to US$ 98.5 million, after reducing outstanding debt and taking advantage of lower interest rates. It said its asbestos-related cash payments for the full year were US$ 245.9 million, while it received US$ 163.7 million in insurance payments related to asbestos claims. Analysts have said asbestos liability, which has pulled down share prices of other manufacturers in recent months, remains a relatively unknown factor in their assessments of Owens-Illinois. The company said it expected asbestos-related cash payments to be “moderately lower in 2002,” and said its insurance receivable for costs related to asbestos claims was US$ 37 million at the end of 2001. New developments in asbestos litigation this year should yield enough information for the company to decide whether it should adjust its current financial reserve for asbestos-related liabilities, it said. Owens-Illinois reported quarterly sales growth in its Glass Containers and Plastics Packaging segments.