O-I lowers 2nd-quarter outlook; stock tumbles

6/16/2011

Owens-Illinois Inc.’s stock plummeted by $4 to $25.54 a share Wednesday after the Perrysburg glass-bottle maker lowered its second-quarter outlook.

O-I expects operating profit margins for the second quarter will be 3 to 6 percent less than a year ago, when it had profits of $141 million, or 85 cents a share, on sales of $1.7 billion.

The company cited higher costs and weaker demand in Australia, where it may idle a glass furnace. The company said sales of glass bottles have slumped in Australia and New Zealand because strong currencies have made wine exports less competitive, and rising interest rates have damped Australian demand for beer.