Owens-Illinois Reports First Quarter Results

Apr 24, 2001, 01:00 ET from Owens-Illinois, Inc.

    TOLEDO, Ohio, April 24 /PRNewswire Interactive News Release/ -- Owens-
 Illinois, Inc., (NYSE:   OI) today reported net earnings of $48.9 million, or
 $0.30 per share (diluted), for the first quarter of 2001.  In 2000, the
 company reported first quarter net earnings of $58.7 million, or $0.36 per
 share (diluted).  Net sales for the first quarter of 2001 were $1.306 billion,
 compared with net sales of $1.346 billion for the first quarter of 2000.
     Net earnings for the first quarter of 2001 included aftertax gains
 totaling $12.0 million, or $0.08 per share, from the sales of the company's
 label business and its Australian minerals business.
     Joseph H. Lemieux, Owens-Illinois chairman and chief executive officer,
 said, "Most of our businesses performed well during the quarter, with
 continued growth in worldwide unit shipments of both glass containers and
 plastics packaging items.  However, higher energy costs and unfavorable
 foreign exchange rates contributed to lower net earnings compared with the
 first quarter of 2000."
     Foreign currency weakness in the first quarter of 2001 reduced reported
 net sales by approximately $62.5 million and reported EBIT by approximately
 $10.5 million compared with the prior-year period. (EBIT consists of
 consolidated earnings before interest income, interest expense, provision for
 income taxes, and minority share owners' interests in earnings of
 subsidiaries.)
     The combined effect of unrecovered energy cost increases and foreign
 currency weakness adversely affected year-over-year EBIT comparisons by
 approximately $40 million for the first quarter of 2001. The net effect of
 these unfavorable energy and currency rate items was a reduction in first
 quarter 2001 earnings per share of approximately $0.17 compared with the
 prior-year period.  The company has been able to recover a portion of its
 increased energy costs through price adjustments.  However, these price
 adjustments still lag behind recent increases in the cost of natural gas.
     "While current operating conditions, especially higher energy costs,
 present near-term challenges, we believe that they also highlight our
 competitive advantage as the low-cost producer," Mr. Lemieux said.  "We
 continue to make significant progress in reducing fixed costs, consolidating
 capacity to maintain efficient manufacturing facilities, and improving our
 financial flexibility.  Our debt is at its lowest level since 1998 and we
 expect it to be reduced further in the second quarter.  Our new credit
 agreement, which we expect to announce in the very near future, will give us a
 solid financial foundation going forward as we continue to focus on efforts to
 improve quality, productivity, cost control, and customer satisfaction.  These
 and other initiatives have placed us in an excellent position to compete under
 today's difficult market conditions and to resume earnings growth as
 conditions improve."
 
     Business Review
     The glass containers segment reported first quarter net sales of
 $841.5 million and EBIT, excluding unusual items, of $120.8 million.  In the
 first quarter of 2000 the glass containers segment had net sales of
 $883.9 billion and EBIT of $135.0 million.  The effect of unfavorable exchange
 rates reduced the glass container segment's net sales by approximately
 $53.0 million and its EBIT by approximately $9.7 million compared with the
 first quarter of 2000.
     Worldwide unit shipments of glass containers rose slightly, as a decline
 in North American shipments was more than offset by increases in South
 America, Europe, and the Asia Pacific region.
     The North American glass container operations reported declines in unit
 shipments and net sales, due in part to conversions of juice and iced tea
 bottles from glass to plastic containers.  EBIT decreased from the prior year,
 due principally to higher energy costs.  These unfavorable factors were
 partially offset by cost reductions from the restructuring and capacity
 realignment program initiated by the company in the third quarter of 2000.
     The South American glass container operations reported double-digit
 percentage increases in unit shipments, net sales, and EBIT, led by the
 operations in Colombia and Venezuela.  The improved results, while still well
 below record first quarter levels achieved by the company's South American
 glass container businesses in 1998, reflected a continuation of modest
 economic recovery in the region.
     Unit shipments by the European glass container operations continued to
 grow in the first quarter.  Net sales and EBIT were higher despite the effects
 of unfavorable exchange rates and higher energy costs.  The value of the euro
 averaged US$0.92 during the quarter compared with US$1.00 in the first quarter
 of 2000, a decline of 8%.  The Italian operations achieved significant
 increases in unit shipments, net sales, and EBIT, as they benefited from the
 addition of incremental business, higher prices, and improved product mix.
     The Asia Pacific glass container operations had higher unit shipments for
 the quarter, led by increases in Australia and Indonesia.  The value of the
 Australian dollar averaged US$0.53 during the quarter compared with US$0.64 in
 the first quarter of 2001, a decline of 17%.  The significant decline in the
 value of the Australian dollar more than accounted for a year-over-year
 decrease in U.S. dollar reported sales.  EBIT, excluding unusual items, was
 lower on a year-over-year basis, due principally to the unfavorable currency
 effects.
     The plastics packaging segment had net sales of $457.6 million and EBIT of
 $68.1 million for the first quarter of 2001, compared with net sales of
 $443.2 million and EBIT of $70.5 million for the first quarter of 2000. The
 increase in net sales was due in part to the pass-through of higher resin
 prices to customers.
     Combined unit shipments of the worldwide plastics packaging businesses
 increased on a year-over-year basis, as most operations continued to
 experience increased demand.  The worldwide plastic containers businesses and
 the U.S. prescription products operations reported solid increases in
 shipments and net sales.  EBIT from the prescription products and custom PET
 businesses improved over prior year.  Plastics packaging operations in the
 U.S. benefited from lower costs resulting from the company's restructuring and
 capacity realignment program.
     The comparison of first quarter 2001 results with those of the prior year
 was adversely affected by several corporate and administrative items.  These
 included lower revenue and earnings from Harbor Capital Advisors related to
 weakness in equity markets during the quarter, lower pension income and
 certain other employee benefit adjustments, and higher spending related to
 information systems improvements.
 
     Cash Flow Information
     In the first quarter of 2001, the company reached settlement agreements
 with several insurers under which it received asbestos-related insurance
 payments of $111.8 million in the quarter, with additional payments to be
 received over the next two years.  These agreements resolve the majority of
 the company's $193 million asset for asbestos-related insurance proceeds that
 had yet to be confirmed at December 31, 2000.
     In the first quarter of 2001, the company continued to proactively resolve
 asbestos-related lawsuits and claims as well as additional claims that it
 otherwise would not have received until later periods.  This proactive effort,
 which began in the fourth quarter of 2000, accounted for increases in the
 number of cases and claims resolved during the first quarter of 2001.  It also
 contributed to an increase in total asbestos-related cash payments to
 $68.8 million in the first quarter of 2001, compared with $26.9 million in the
 first quarter of 2000.  The majority of the cases and claims resolved in 2001
 were pursuant to pre-existing agreements with plaintiffs' attorneys and to
 additional agreements that were entered into as a result of the proactive
 resolutions.  Also contributing to the increase in asbestos-related cash
 payments in the first quarter of 2001 were higher legal defense fees, due in
 part to the trials of two cases that could not be settled on terms acceptable
 to the company.  In both cases, the company obtained favorable verdicts,
 finding it not liable for any of the asserted claims.
     The company expects that second quarter asbestos-related cash payments
 will be at more normal levels and also will be lower on a net basis because of
 the receipt of approximately $32 million of additional insurance proceeds
 pursuant to the insurance settlements reached in the first quarter.  The
 company expects that its total asbestos-related cash payments for the year
 will be approximately $200 million, consistent with its previously announced
 estimate, and that net cash payments for the year will be approximately
 $35 million after insurance proceeds from existing settlements.
     The company also received proceeds of approximately $116 million in the
 first quarter of 2001 from the sales of its labels business and Australian
 minerals business.  Capital expenditures in the first quarter of 2001 totaled
 $93.1 million, down from $134.8 million in the first quarter of 2000.  The
 prior-year period included expenditures related to several projects that have
 since been completed, including the start-up of a PET bottle manufacturing
 plant in the U.S. and the addition of capacity at several other PET bottle
 plants.
     The company's total debt at March 31, 2001 was $5.64 billion, its lowest
 level since its $3.6 billion acquisition of the worldwide glass and plastics
 packaging businesses of BTR plc in April 1998.  Additional debt reduction is
 expected as a result of the company's previously announced agreement to sell
 its Harbor Capital Advisors business.  The sale is expected to close in June.
 Cash proceeds at closing are currently estimated to be approximately
 $450 million after expected adjustments and holdbacks.
 
     Outlook
     Energy costs and foreign currency weakness are continuing to have an
 adverse effect on year-over-year comparisons in the second quarter of 2001.
 As a result, the company expects that operating earnings for the second
 quarter 2001 and for the year will be below those of the prior year period.
 The company reported net earnings of $0.57 per share (diluted) for the second
 quarter of 2000 and earnings before unusual items of $1.45 per share (diluted)
 for the year ended December 31, 2000.
 
     Forward looking Statements
     This news release may contain "forward looking" statements as defined in
 the Private Securities Litigation Reform Act of 1995.  Forward looking
 statements reflect the Company's best assessment at the time, and thus involve
 uncertainty and risk.  It is possible the Company's future financial
 performance may differ from expectations due to a variety of factors such as
 those described in the Company's December 31, 2000 Form 10-K filed with the
 Securities and Exchange Commission.  Forward looking statements are not a
 guarantee of future performance, and actual results or developments may differ
 materially from expectations.  While the Company continually reviews trends
 and uncertainties affecting the Company's results of operations and financial
 condition, the Company does not intend to update any particular forward
 looking statements contained in this news release.
 
     Company Profile
     Owens-Illinois is the largest manufacturer of glass containers in North
 America, South America, Australia, New Zealand, and China, and one of the
 largest in Europe.  O-I also is a worldwide manufacturer of plastics
 packaging, with operations in North America, South America, Australia, Europe,
 and Asia.  Plastics packaging products manufactured by O-I include containers,
 closures, and prescription containers.
 
     Conference Call
     As announced previously, a conference call to discuss the company's latest
 results will be held Wednesday, April 25, at 8:30 a.m., Eastern Time. A live
 webcast and a replay of the conference call will be available on the Internet
 at the Owens-Illinois web site ( www.o-i.com ). The conference call also may
 be accessed by dialing 888-733-1701 (U.S. and Canada) or 706-634-4943
 (International) by 8:20 a.m. (Eastern Time) on April 25. Ask for the Owens-
 Illinois conference call.  A replay of the call will be available from
 approximately 11:30 a.m. (Eastern Time) on April 25 through May 4. In addition
 to the Owens-Illinois web site, the replay also may be accessed by dialing
 800-642-1687 (U.S. and Canada) or 706-645-9291 (International).  The
 conference ID number to access the replay is 670907.
     Copies of Owens-Illinois news releases are available at the Owens-Illinois
 web site at www.o-i.com or at www.prnewswire.com .  To contact Owens-Illinois
 investor relations, dial 419-247-2400.
 
                              OWENS-ILLINOIS, INC.
                   Condensed Consolidated Results of Operations
                  (Millions of dollars, except per share amounts)
 
                                           Three Months ended March 31,
                                           ----------------------------
                                                2001             2000
                                              --------         --------
     Revenues:
       Net sales                              $1,306.1         $1,345.6
       Royalties and net technical
         assistance                                5.4              7.2
       Equity earnings                             3.6              3.3
       Interest                                    6.5              6.8
       Other(a)                                   42.9             47.2
                                              --------         --------
                                               1,364.5          1,410.1
 
     Costs and expenses:
       Manufacturing, shipping, and
         delivery                              1,027.7          1,045.9
       Research and development                   10.2             10.5
       Engineering                                 6.8             11.8
       Selling and administrative                 78.4             75.3
       Interest                                  113.5            115.2
       Other                                      46.9             50.1
                                              --------         --------
                                               1,283.5          1,308.8
                                              --------         --------
 
     Earnings before items below                  81.0            101.3
 
     Provision for income taxes                   27.2             40.5
 
     Minority share owners' interests
       in earnings of subsidiaries                 4.9              2.1
                                              --------         --------
     Net earnings                                 48.9             58.7
                                              ========         ========
 
       Preferred stock dividends:
         Convertible                              (5.4)            (5.4)
         Exchangeable                               --              (.1)
                                              --------         --------
       Net earnings available to
         common share owners                      43.5             53.2
 
       Effect of dilutive securities -
         Exchangeable preferred stock
           dividends                                --               .1
                                              --------         --------
       Net earnings used in diluted
         earnings per share calculation       $   43.5         $   53.3
                                              ========         ========
 
     Basic net earnings per share of
       common stock                           $   0.30         $   0.36
                                              ========         ========
 
      Weighted average shares
      outstanding (000s)(b)                    144,639          146,585
                                               =======          =======
 
     Diluted net earnings per share
       of common stock                        $   0.30         $   0.36
                                              ========         ========
 
     Diluted average shares(000s)              144,662          147,184
                                               =======          =======
 
     (a) Amount for 2001 includes gains totaling $13.1 million ($12.0 million
     after tax) related to the sale of the Company's label business and the
     sale of a minerals business in Australia.  The net aftertax effect of
     these items is an increase in earnings per share of $0.08.
 
 
     (b) The Company's Board of Directors has authorized the management of the
     Company to repurchase up to 20 million shares of the Company's common
     stock. During the first quarter of 2001, the Company redeemed the
     remaining outstanding shares of exchangeable preferred stock that were
     issued in 1993.  The redeemed exchangeable preferred shares were
     equivalent to 910,697 shares of the Company's common stock.  The Company
     repurchased these shares pursuant to its share repurchase plan for $5.2
     million.  Since July 1999, the Company has repurchased 12,929,397 shares
     for $248.0 million.  The Company intends to purchase its common stock from
     time to time on the open market depending on market conditions and other
     factors.  As of March 31, 2001, Owens-Illinois had 145,070,548 shares of
     common stock outstanding.
 
                              OWENS-ILLINOIS, INC.
                    Consolidated Supplemental Financial Data
                             With EBIT as reported
                        (Preliminary - subject to change)
                             (Millions of dollars)
 
                                           Three Months Ended March 31,
                                           ----------------------------
                                               2001            2000
                                             --------        --------
     Net sales:
       Glass Containers                      $  841.5        $  883.9
       Plastics Packaging                       457.6           443.2
       Other                                      7.0            18.5
                                             --------        --------
     Segment and consolidated net sales      $1,306.1        $1,345.6
                                             ========        ========
 
     EBIT as reported(a):
       Glass Containers(b)                   $  131.1        $  135.0
       Plastics Packaging                        68.1            70.5
       Other(c)                                   2.0              .9
                                             --------        --------
     Segment EBIT                               201.2           206.4
       Eliminations and other retained
         costs                                  (13.2)            3.3
                                             --------        --------
     Consolidated EBIT                       $  188.0        $  209.7
                                             ========        ========
 
 
     Selected Cash Flow Information
     ------------------------------
     Amortization of deferred costs          $   32.8        $   36.3
                                             ========        ========
 
     Depreciation                            $  100.7        $  104.3
                                             ========        ========
 
     Additions to property, plant, and
       equipment                             $   93.1        $  134.8
                                             ========        ========
 
     Asbestos-related payments               $   68.8        $   26.9
                                             ========        ========
 
     Asbestos-related insurance proceeds     $  111.8        $     --
                                             ========        ========
 
 
                                  March 31, 2001         March 31, 2000
                                  --------------         --------------
     Total debt                         $5,643.8               $6,003.1
                                        ========               ========
 
     Share owners' equity               $1,813.2               $2,364.9
                                        ========               ========
 
 
     (a) EBIT consists of consolidated earnings before interest income,
     interest expense, provision for income taxes, and minority share owners'
     interests in earnings of subsidiaries.
 
     (b) Amount for 2001 includes a gain of $10.3 million from the sale of a
     minerals business in Australia.
 
     (c) Amount for 2001 includes a gain of $2.8 million from the sale of the
     Company's labels business.
 
                              OWENS-ILLINOIS, INC.
                    Consolidated Supplemental Financial Data
                        With EBIT excluding unusual items
                        (Preliminary - subject to change)
                             (Millions of dollars)
 
                                           Three Months Ended March 31,
                                           ----------------------------
                                               2001            2000
                                             --------        --------
     Net sales:
       Glass Containers                      $  841.5        $  883.9
       Plastics Packaging                       457.6           443.2
       Other                                      7.0            18.5
                                             --------        --------
     Segment and consolidated net sales      $1,306.1        $1,345.6
                                             ========        ========
 
     EBIT excluding unusual items(a):
       Glass Containers(b)                   $  120.8        $  135.0
       Plastics Packaging                        68.1            70.5
       Other(c)                                   (.8)             .9
                                             --------        --------
     Segment EBIT                               188.1           206.4
       Eliminations and other retained
         costs                                  (13.2)            3.3
                                             --------        --------
     Consolidated EBIT                       $  174.9        $  209.7
                                             ========        ========
 
 
     Selected Cash Flow Information
     ------------------------------
     Amortization of deferred costs          $   32.8        $   36.3
                                             ========        ========
 
     Depreciation                            $  100.7        $  104.3
                                             ========        ========
 
     Additions to property, plant, and
       equipment                             $   93.1        $  134.8
                                             ========        ========
 
     Asbestos-related payments               $   68.8        $   26.9
                                             ========        ========
 
     Asbestos-related insurance proceeds     $  111.8        $     --
                                             ========        ========
 
 
                                  March 31, 2001         March 31, 2000
                                  --------------         --------------
     Total debt                         $5,634.8               $6,003.1
                                        ========               ========
 
     Share owners' equity               $1,813.2               $2,364.9
                                        ========               ========
 
 
     (a) EBIT consists of consolidated earnings before interest income,
     interest expense, provision for income taxes, and minority share owners'
     interests in earnings of subsidiaries.
 
     (b) Amount for 2001 excludes a gain of $10.3 million from the sale of a
     minerals business in Australia.
 
     (c) Amount for 2001 excludes a gain of $2.8 million from the sale of the
     Company's labels business.
 
                        MAKE YOUR OPINION COUNT - Click Here
                  http://tbutton.prnewswire.com/prn/11690X46213394
 
 

SOURCE Owens-Illinois, Inc.
    TOLEDO, Ohio, April 24 /PRNewswire Interactive News Release/ -- Owens-
 Illinois, Inc., (NYSE:   OI) today reported net earnings of $48.9 million, or
 $0.30 per share (diluted), for the first quarter of 2001.  In 2000, the
 company reported first quarter net earnings of $58.7 million, or $0.36 per
 share (diluted).  Net sales for the first quarter of 2001 were $1.306 billion,
 compared with net sales of $1.346 billion for the first quarter of 2000.
     Net earnings for the first quarter of 2001 included aftertax gains
 totaling $12.0 million, or $0.08 per share, from the sales of the company's
 label business and its Australian minerals business.
     Joseph H. Lemieux, Owens-Illinois chairman and chief executive officer,
 said, "Most of our businesses performed well during the quarter, with
 continued growth in worldwide unit shipments of both glass containers and
 plastics packaging items.  However, higher energy costs and unfavorable
 foreign exchange rates contributed to lower net earnings compared with the
 first quarter of 2000."
     Foreign currency weakness in the first quarter of 2001 reduced reported
 net sales by approximately $62.5 million and reported EBIT by approximately
 $10.5 million compared with the prior-year period. (EBIT consists of
 consolidated earnings before interest income, interest expense, provision for
 income taxes, and minority share owners' interests in earnings of
 subsidiaries.)
     The combined effect of unrecovered energy cost increases and foreign
 currency weakness adversely affected year-over-year EBIT comparisons by
 approximately $40 million for the first quarter of 2001. The net effect of
 these unfavorable energy and currency rate items was a reduction in first
 quarter 2001 earnings per share of approximately $0.17 compared with the
 prior-year period.  The company has been able to recover a portion of its
 increased energy costs through price adjustments.  However, these price
 adjustments still lag behind recent increases in the cost of natural gas.
     "While current operating conditions, especially higher energy costs,
 present near-term challenges, we believe that they also highlight our
 competitive advantage as the low-cost producer," Mr. Lemieux said.  "We
 continue to make significant progress in reducing fixed costs, consolidating
 capacity to maintain efficient manufacturing facilities, and improving our
 financial flexibility.  Our debt is at its lowest level since 1998 and we
 expect it to be reduced further in the second quarter.  Our new credit
 agreement, which we expect to announce in the very near future, will give us a
 solid financial foundation going forward as we continue to focus on efforts to
 improve quality, productivity, cost control, and customer satisfaction.  These
 and other initiatives have placed us in an excellent position to compete under
 today's difficult market conditions and to resume earnings growth as
 conditions improve."
 
     Business Review
     The glass containers segment reported first quarter net sales of
 $841.5 million and EBIT, excluding unusual items, of $120.8 million.  In the
 first quarter of 2000 the glass containers segment had net sales of
 $883.9 billion and EBIT of $135.0 million.  The effect of unfavorable exchange
 rates reduced the glass container segment's net sales by approximately
 $53.0 million and its EBIT by approximately $9.7 million compared with the
 first quarter of 2000.
     Worldwide unit shipments of glass containers rose slightly, as a decline
 in North American shipments was more than offset by increases in South
 America, Europe, and the Asia Pacific region.
     The North American glass container operations reported declines in unit
 shipments and net sales, due in part to conversions of juice and iced tea
 bottles from glass to plastic containers.  EBIT decreased from the prior year,
 due principally to higher energy costs.  These unfavorable factors were
 partially offset by cost reductions from the restructuring and capacity
 realignment program initiated by the company in the third quarter of 2000.
     The South American glass container operations reported double-digit
 percentage increases in unit shipments, net sales, and EBIT, led by the
 operations in Colombia and Venezuela.  The improved results, while still well
 below record first quarter levels achieved by the company's South American
 glass container businesses in 1998, reflected a continuation of modest
 economic recovery in the region.
     Unit shipments by the European glass container operations continued to
 grow in the first quarter.  Net sales and EBIT were higher despite the effects
 of unfavorable exchange rates and higher energy costs.  The value of the euro
 averaged US$0.92 during the quarter compared with US$1.00 in the first quarter
 of 2000, a decline of 8%.  The Italian operations achieved significant
 increases in unit shipments, net sales, and EBIT, as they benefited from the
 addition of incremental business, higher prices, and improved product mix.
     The Asia Pacific glass container operations had higher unit shipments for
 the quarter, led by increases in Australia and Indonesia.  The value of the
 Australian dollar averaged US$0.53 during the quarter compared with US$0.64 in
 the first quarter of 2001, a decline of 17%.  The significant decline in the
 value of the Australian dollar more than accounted for a year-over-year
 decrease in U.S. dollar reported sales.  EBIT, excluding unusual items, was
 lower on a year-over-year basis, due principally to the unfavorable currency
 effects.
     The plastics packaging segment had net sales of $457.6 million and EBIT of
 $68.1 million for the first quarter of 2001, compared with net sales of
 $443.2 million and EBIT of $70.5 million for the first quarter of 2000. The
 increase in net sales was due in part to the pass-through of higher resin
 prices to customers.
     Combined unit shipments of the worldwide plastics packaging businesses
 increased on a year-over-year basis, as most operations continued to
 experience increased demand.  The worldwide plastic containers businesses and
 the U.S. prescription products operations reported solid increases in
 shipments and net sales.  EBIT from the prescription products and custom PET
 businesses improved over prior year.  Plastics packaging operations in the
 U.S. benefited from lower costs resulting from the company's restructuring and
 capacity realignment program.
     The comparison of first quarter 2001 results with those of the prior year
 was adversely affected by several corporate and administrative items.  These
 included lower revenue and earnings from Harbor Capital Advisors related to
 weakness in equity markets during the quarter, lower pension income and
 certain other employee benefit adjustments, and higher spending related to
 information systems improvements.
 
     Cash Flow Information
     In the first quarter of 2001, the company reached settlement agreements
 with several insurers under which it received asbestos-related insurance
 payments of $111.8 million in the quarter, with additional payments to be
 received over the next two years.  These agreements resolve the majority of
 the company's $193 million asset for asbestos-related insurance proceeds that
 had yet to be confirmed at December 31, 2000.
     In the first quarter of 2001, the company continued to proactively resolve
 asbestos-related lawsuits and claims as well as additional claims that it
 otherwise would not have received until later periods.  This proactive effort,
 which began in the fourth quarter of 2000, accounted for increases in the
 number of cases and claims resolved during the first quarter of 2001.  It also
 contributed to an increase in total asbestos-related cash payments to
 $68.8 million in the first quarter of 2001, compared with $26.9 million in the
 first quarter of 2000.  The majority of the cases and claims resolved in 2001
 were pursuant to pre-existing agreements with plaintiffs' attorneys and to
 additional agreements that were entered into as a result of the proactive
 resolutions.  Also contributing to the increase in asbestos-related cash
 payments in the first quarter of 2001 were higher legal defense fees, due in
 part to the trials of two cases that could not be settled on terms acceptable
 to the company.  In both cases, the company obtained favorable verdicts,
 finding it not liable for any of the asserted claims.
     The company expects that second quarter asbestos-related cash payments
 will be at more normal levels and also will be lower on a net basis because of
 the receipt of approximately $32 million of additional insurance proceeds
 pursuant to the insurance settlements reached in the first quarter.  The
 company expects that its total asbestos-related cash payments for the year
 will be approximately $200 million, consistent with its previously announced
 estimate, and that net cash payments for the year will be approximately
 $35 million after insurance proceeds from existing settlements.
     The company also received proceeds of approximately $116 million in the
 first quarter of 2001 from the sales of its labels business and Australian
 minerals business.  Capital expenditures in the first quarter of 2001 totaled
 $93.1 million, down from $134.8 million in the first quarter of 2000.  The
 prior-year period included expenditures related to several projects that have
 since been completed, including the start-up of a PET bottle manufacturing
 plant in the U.S. and the addition of capacity at several other PET bottle
 plants.
     The company's total debt at March 31, 2001 was $5.64 billion, its lowest
 level since its $3.6 billion acquisition of the worldwide glass and plastics
 packaging businesses of BTR plc in April 1998.  Additional debt reduction is
 expected as a result of the company's previously announced agreement to sell
 its Harbor Capital Advisors business.  The sale is expected to close in June.
 Cash proceeds at closing are currently estimated to be approximately
 $450 million after expected adjustments and holdbacks.
 
     Outlook
     Energy costs and foreign currency weakness are continuing to have an
 adverse effect on year-over-year comparisons in the second quarter of 2001.
 As a result, the company expects that operating earnings for the second
 quarter 2001 and for the year will be below those of the prior year period.
 The company reported net earnings of $0.57 per share (diluted) for the second
 quarter of 2000 and earnings before unusual items of $1.45 per share (diluted)
 for the year ended December 31, 2000.
 
     Forward looking Statements
     This news release may contain "forward looking" statements as defined in
 the Private Securities Litigation Reform Act of 1995.  Forward looking
 statements reflect the Company's best assessment at the time, and thus involve
 uncertainty and risk.  It is possible the Company's future financial
 performance may differ from expectations due to a variety of factors such as
 those described in the Company's December 31, 2000 Form 10-K filed with the
 Securities and Exchange Commission.  Forward looking statements are not a
 guarantee of future performance, and actual results or developments may differ
 materially from expectations.  While the Company continually reviews trends
 and uncertainties affecting the Company's results of operations and financial
 condition, the Company does not intend to update any particular forward
 looking statements contained in this news release.
 
     Company Profile
     Owens-Illinois is the largest manufacturer of glass containers in North
 America, South America, Australia, New Zealand, and China, and one of the
 largest in Europe.  O-I also is a worldwide manufacturer of plastics
 packaging, with operations in North America, South America, Australia, Europe,
 and Asia.  Plastics packaging products manufactured by O-I include containers,
 closures, and prescription containers.
 
     Conference Call
     As announced previously, a conference call to discuss the company's latest
 results will be held Wednesday, April 25, at 8:30 a.m., Eastern Time. A live
 webcast and a replay of the conference call will be available on the Internet
 at the Owens-Illinois web site ( www.o-i.com ). The conference call also may
 be accessed by dialing 888-733-1701 (U.S. and Canada) or 706-634-4943
 (International) by 8:20 a.m. (Eastern Time) on April 25. Ask for the Owens-
 Illinois conference call.  A replay of the call will be available from
 approximately 11:30 a.m. (Eastern Time) on April 25 through May 4. In addition
 to the Owens-Illinois web site, the replay also may be accessed by dialing
 800-642-1687 (U.S. and Canada) or 706-645-9291 (International).  The
 conference ID number to access the replay is 670907.
     Copies of Owens-Illinois news releases are available at the Owens-Illinois
 web site at www.o-i.com or at www.prnewswire.com .  To contact Owens-Illinois
 investor relations, dial 419-247-2400.
 
                              OWENS-ILLINOIS, INC.
                   Condensed Consolidated Results of Operations
                  (Millions of dollars, except per share amounts)
 
                                           Three Months ended March 31,
                                           ----------------------------
                                                2001             2000
                                              --------         --------
     Revenues:
       Net sales                              $1,306.1         $1,345.6
       Royalties and net technical
         assistance                                5.4              7.2
       Equity earnings                             3.6              3.3
       Interest                                    6.5              6.8
       Other(a)                                   42.9             47.2
                                              --------         --------
                                               1,364.5          1,410.1
 
     Costs and expenses:
       Manufacturing, shipping, and
         delivery                              1,027.7          1,045.9
       Research and development                   10.2             10.5
       Engineering                                 6.8             11.8
       Selling and administrative                 78.4             75.3
       Interest                                  113.5            115.2
       Other                                      46.9             50.1
                                              --------         --------
                                               1,283.5          1,308.8
                                              --------         --------
 
     Earnings before items below                  81.0            101.3
 
     Provision for income taxes                   27.2             40.5
 
     Minority share owners' interests
       in earnings of subsidiaries                 4.9              2.1
                                              --------         --------
     Net earnings                                 48.9             58.7
                                              ========         ========
 
       Preferred stock dividends:
         Convertible                              (5.4)            (5.4)
         Exchangeable                               --              (.1)
                                              --------         --------
       Net earnings available to
         common share owners                      43.5             53.2
 
       Effect of dilutive securities -
         Exchangeable preferred stock
           dividends                                --               .1
                                              --------         --------
       Net earnings used in diluted
         earnings per share calculation       $   43.5         $   53.3
                                              ========         ========
 
     Basic net earnings per share of
       common stock                           $   0.30         $   0.36
                                              ========         ========
 
      Weighted average shares
      outstanding (000s)(b)                    144,639          146,585
                                               =======          =======
 
     Diluted net earnings per share
       of common stock                        $   0.30         $   0.36
                                              ========         ========
 
     Diluted average shares(000s)              144,662          147,184
                                               =======          =======
 
     (a) Amount for 2001 includes gains totaling $13.1 million ($12.0 million
     after tax) related to the sale of the Company's label business and the
     sale of a minerals business in Australia.  The net aftertax effect of
     these items is an increase in earnings per share of $0.08.
 
 
     (b) The Company's Board of Directors has authorized the management of the
     Company to repurchase up to 20 million shares of the Company's common
     stock. During the first quarter of 2001, the Company redeemed the
     remaining outstanding shares of exchangeable preferred stock that were
     issued in 1993.  The redeemed exchangeable preferred shares were
     equivalent to 910,697 shares of the Company's common stock.  The Company
     repurchased these shares pursuant to its share repurchase plan for $5.2
     million.  Since July 1999, the Company has repurchased 12,929,397 shares
     for $248.0 million.  The Company intends to purchase its common stock from
     time to time on the open market depending on market conditions and other
     factors.  As of March 31, 2001, Owens-Illinois had 145,070,548 shares of
     common stock outstanding.
 
                              OWENS-ILLINOIS, INC.
                    Consolidated Supplemental Financial Data
                             With EBIT as reported
                        (Preliminary - subject to change)
                             (Millions of dollars)
 
                                           Three Months Ended March 31,
                                           ----------------------------
                                               2001            2000
                                             --------        --------
     Net sales:
       Glass Containers                      $  841.5        $  883.9
       Plastics Packaging                       457.6           443.2
       Other                                      7.0            18.5
                                             --------        --------
     Segment and consolidated net sales      $1,306.1        $1,345.6
                                             ========        ========
 
     EBIT as reported(a):
       Glass Containers(b)                   $  131.1        $  135.0
       Plastics Packaging                        68.1            70.5
       Other(c)                                   2.0              .9
                                             --------        --------
     Segment EBIT                               201.2           206.4
       Eliminations and other retained
         costs                                  (13.2)            3.3
                                             --------        --------
     Consolidated EBIT                       $  188.0        $  209.7
                                             ========        ========
 
 
     Selected Cash Flow Information
     ------------------------------
     Amortization of deferred costs          $   32.8        $   36.3
                                             ========        ========
 
     Depreciation                            $  100.7        $  104.3
                                             ========        ========
 
     Additions to property, plant, and
       equipment                             $   93.1        $  134.8
                                             ========        ========
 
     Asbestos-related payments               $   68.8        $   26.9
                                             ========        ========
 
     Asbestos-related insurance proceeds     $  111.8        $     --
                                             ========        ========
 
 
                                  March 31, 2001         March 31, 2000
                                  --------------         --------------
     Total debt                         $5,643.8               $6,003.1
                                        ========               ========
 
     Share owners' equity               $1,813.2               $2,364.9
                                        ========               ========
 
 
     (a) EBIT consists of consolidated earnings before interest income,
     interest expense, provision for income taxes, and minority share owners'
     interests in earnings of subsidiaries.
 
     (b) Amount for 2001 includes a gain of $10.3 million from the sale of a
     minerals business in Australia.
 
     (c) Amount for 2001 includes a gain of $2.8 million from the sale of the
     Company's labels business.
 
                              OWENS-ILLINOIS, INC.
                    Consolidated Supplemental Financial Data
                        With EBIT excluding unusual items
                        (Preliminary - subject to change)
                             (Millions of dollars)
 
                                           Three Months Ended March 31,
                                           ----------------------------
                                               2001            2000
                                             --------        --------
     Net sales:
       Glass Containers                      $  841.5        $  883.9
       Plastics Packaging                       457.6           443.2
       Other                                      7.0            18.5
                                             --------        --------
     Segment and consolidated net sales      $1,306.1        $1,345.6
                                             ========        ========
 
     EBIT excluding unusual items(a):
       Glass Containers(b)                   $  120.8        $  135.0
       Plastics Packaging                        68.1            70.5
       Other(c)                                   (.8)             .9
                                             --------        --------
     Segment EBIT                               188.1           206.4
       Eliminations and other retained
         costs                                  (13.2)            3.3
                                             --------        --------
     Consolidated EBIT                       $  174.9        $  209.7
                                             ========        ========
 
 
     Selected Cash Flow Information
     ------------------------------
     Amortization of deferred costs          $   32.8        $   36.3
                                             ========        ========
 
     Depreciation                            $  100.7        $  104.3
                                             ========        ========
 
     Additions to property, plant, and
       equipment                             $   93.1        $  134.8
                                             ========        ========
 
     Asbestos-related payments               $   68.8        $   26.9
                                             ========        ========
 
     Asbestos-related insurance proceeds     $  111.8        $     --
                                             ========        ========
 
 
                                  March 31, 2001         March 31, 2000
                                  --------------         --------------
     Total debt                         $5,634.8               $6,003.1
                                        ========               ========
 
     Share owners' equity               $1,813.2               $2,364.9
                                        ========               ========
 
 
     (a) EBIT consists of consolidated earnings before interest income,
     interest expense, provision for income taxes, and minority share owners'
     interests in earnings of subsidiaries.
 
     (b) Amount for 2001 excludes a gain of $10.3 million from the sale of a
     minerals business in Australia.
 
     (c) Amount for 2001 excludes a gain of $2.8 million from the sale of the
     Company's labels business.
 
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 SOURCE  Owens-Illinois, Inc.