CFO Comments Causes Steady Rise in Shares of Owens-Illinois (OI)

September 6, 2012 3:15 PM EDT
Shares of glass container manufacturer Owens-Illinois, Inc. (NYSE: OI) moved higher today, gaining 10 percent. The unusually rally occurred following a presentation by the company's CFO, Steve Bramlage, at the Bank of America Merrill Lynch Global Industrials & Materials Conference.

In his speech, Bramlage reaffirmed prior guidance issued in July. He also expressed optimism about a recent court ruling that said Owens-Illinious did not conspire with other companies regarding asbestos health hazards, referring a 2011 jury verdict that was recently vacated.

"We did not change our financial outlook after the verdict in 2011, and we do not anticipate any changes in our financial outlook for 2012 as a result. But we are quite pleased that the Judge has recognized our fact pattern."

He also said the company would probably not be making acquisitions in the near term.

"Over the past couple of years, we have pursued several acquisitions in emerging markets including South America, specifically Brazil and Argentina, and Asia, specifically Malaysia, Vietnam and China. However, we are not planning on actively pursuing further acquisitions for the foreseeable future," he said. "We need to focus on running the operations that we have acquired and that we already have owned in the portfolio and ensuring that we're optimizing the performance of those assets."

After the presentation, Bramlage answered analyst questions relating to a number of issues, including volumes in Europe.

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