Owens-Illinois rises on 4Q results and outlook
NEW YORK (AP) — Shares of Owens-Illinois Inc. rose Thursday after the glass container maker reported solid fourth-quarter results and provided a positive outlook for this year.
THE SPARK: Owens-Illinois makes glass containers for beer, liquor and other beverages. It reported quarterly results after the market closed Wednesday. The company posted a smaller loss than it did a year ago. Its adjusted net income and revenue were a bit better than analysts expected, although total revenue dropped by 4 percent.
The company expects to earn $2.60 to $3 per share in 2013. Analysts estimate $2.81 per share on average, according to FactSet.
THE BIG PICTURE: Owens-Illinois said shipments decreased, but it raised its prices. The company thinks sales volumes should improve slightly in 2013, and higher prices should help counteract rising costs.
THE ANALYSIS: Jefferies & Co. analyst Philip Ng said the Perrysburg, Ohio, company brought in more cash than he expected in the fourth quarter. Ng wrote that "demand is finally stabilizing in Europe" and the company's business in the Asia-Pacific region was "surprisingly strong."
The analyst kept a "Buy" rating and price target of $28 on the shares.
SHARE ACTION: Owens-Illinois stock rose $1.18, or 5.2 percent, to $23.94 in afternoon trading. The shares were trading at three-year lows in early September but are up 32 percent since then.